Is CBRE a high-quality business?

AlphaMadera's AlphaQuality grade scores CBRE Group, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CBRE compares to a Buffett-style quality bar.

What is CBRE Group, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CBRE based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CBRE a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CBRE - CBRE Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $180.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 61.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D 38.0

5yr Avg ROIC 6.3% 42/100
Operating Margin Trend -0.64 pp/yr 30/100

Capital Efficiency

Weight: 15%

A- 83.8

5yr Avg ROE 14.3% 78/100
5yr Share-Count CAGR -3.0% 95/100

Growth Quality

Weight: 15%

C+ 57.2

5yr Revenue CAGR 10.0% 80/100
5yr EPS CAGR -8.2% 4/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

B 70.0

5yr FCF Margin 4.1% 46/100
5yr FCF/NI Conversion 1.01x 100/100

Balance Sheet

Weight: 20%

B- 65.2

Net Debt / EBITDA 3.15x 47/100
Interest Coverage (EBIT/Int) 8.15x 78/100
Altman Z-Score 3.18 83/100

Stability

Weight: 15%

B- 62.6

EPS Volatility (σ/μ) 0.38 46/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

3 of 4 gurus held; 3 added; 3 full exits.

Holders: 3 -1
Avg Δ position: +3048.3%
New buys: 0
Full exits: 3

Halvorsen sold -100%
Dalio sold -100%
Laffont sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.