Investment Thesis
Cushman & Wakefield exhibits severe financial distress despite 8.9% revenue growth, with negative net income (-$0.5% margin), deeply negative operating cash flow (-$243.5M), and critically inadequate interest coverage (0.3x). The company cannot service its $2.6B debt burden from operations while burning cash, indicating structural profitability problems beyond cyclical headwinds.
Strengths
- Revenue growth of 8.9% YoY demonstrates market demand for services
- $600.6M cash balance provides near-term liquidity cushion
- Substantial asset base of $7.6B in real estate sector stronghold
Risks
- Operating cash flow of -$243.5M and free cash flow of -$255.7M show severe cash burn despite positive revenue
- Interest coverage ratio of 0.3x means operating income covers only 30% of interest expense—unsustainable debt service
- Net margin of -0.5% with deteriorating net income (-32.8% YoY) signals operational profitability collapse
- Debt/equity of 1.34x with negative cash generation creates refinancing and solvency risk
- 17 Form 4 insider filings may reflect management concern about financial trajectory
Key Metrics to Watch
- Operating cash flow trend (must turn positive to avoid liquidity crisis)
- Interest coverage ratio (must exceed 1.0x minimum for debt sustainability)
- Net margin recovery and path to profitability
- Debt/equity ratio and refinancing needs
Financial Metrics
Revenue
2.5B
Net Income
-12.6M
EPS (Diluted)
$-0.05
Free Cash Flow
-255.7M
Total Assets
7.6B
Cash
600.6M
Profitability Ratios
Gross Margin
N/A
Operating Margin
2.3%
Net Margin
-0.5%
ROE
-0.6%
ROA
-0.2%
FCF Margin
-10.1%
Balance Sheet & Liquidity
Current Ratio
1.13x
Quick Ratio
1.13x
Debt/Equity
1.34x
Debt/Assets
74.5%
Interest Coverage
0.34x
Long-term Debt
2.6B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T10:17:20.129484 |
Data as of: 2026-03-31 |
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