CoStar Group Inc (CSGP, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position and promising growth prospects. With its shares currently priced at $77.20, CoStar Group Inc has experienced a daily gain of 2.18%, despite a three-month change of -9.83%. A detailed analysis, supported by the GF Score, positions CoStar Group Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. CoStar Group Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 8/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 5/10
Understanding CoStar Group Inc's Business
CoStar Group Inc, with a market cap of $31.64 billion and annual sales of $2.60 billion, is a leader in providing commercial real estate data and marketplace listing platforms. Its extensive data offerings cover over 5 million properties across various sectors such as office, retail, and industrial. The company operates renowned brands like CoStar Suite and Apartments.com, with a significant portion of its revenue derived from subscription services. Recently, CoStar Group Inc has expanded its operations into international markets including Canada and the United Kingdom.
Financial Strength and Stability
CoStar Group Inc's financial resilience is evident in its Financial Strength rating. With an Altman Z-Score of 12.47, the company is well-protected against financial distress. Additionally, its strategic debt management is reflected in a favorable Debt-to-Revenue ratio of 0.42, underscoring its solid financial health.
Profitability and Growth Metrics
CoStar Group Inc is distinguished by its high Profitability Rank. The company's commitment to growth is further demonstrated by its impressive Growth Rank, with a 3-Year Revenue Growth Rate of 11.7%, outperforming 60.26% of peers in the Real Estate industry.
Conclusion: A Strong Candidate for Market Outperformance
Given CoStar Group Inc's robust financial strength, impressive profitability, and strategic growth initiatives, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
