CoStar Group (CSGP)

Real Estate · $12.0B market cap · SEC CIK 0001057352

Next reports on Feb 22, 2027, after the close, with analysts expecting $0.49 in earnings per share.

52-week range $25.89 to $70.57. 57% below its 52-week high and 17% above its low.

The case for CSGP

• Revenue up 20.2% on the year.
• Holds more cash ($1.6B) than long-term debt ($993M).
• Earnings per share up 747.6%.
• Has compounded revenue at 14.4% a year over five years.
• Gross margin of 78% absorbs cost shocks.
• Moves less than the market (beta 0.78).

The case against

• Expensive for its growth: 67.4× earnings, where 5% a year of growth would justify about 15×.
• Down 53.7% over the past year.
• Return on equity of only 2%.
• Near the bottom of its 52-week range, 57% below the high. Falling prices usually have a reason; find it first.
• Free cash flow is only 1.0% of its market value, a thin cash return for the price.
• Net margin of 5% is thinner than 90% of Real Estate companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.

The financials

The financials, five years deep

Pulled from CoStar Group's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What CoStar Group says it does

In this Report, the words “we,” “our,” “us,” “CoStar Group,” or the “Company” refer to CoStar Group, Inc. and its direct and indirect wholly-owned subsidiaries. This Report also refers to our websites, but information contained on those sites is not part of this Report. Overview CoStar Group is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets. Our mission is to digitize the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. We own and operate leading online marketplaces for real estate in the U.S., Australia, Europe, Canada, and Asia-Pacific based on the numbers of unique visitors and site visits per month. We provide more information, analytics, and marketing services than many of our competitors; offer the most comprehensive commercial real estate database available;…

Risk factors CSGP lists in its 10-K

• Our operating results and revenue are subject to fluctuations, and our quarterly financial results may be subject to market cyclicality, each of which could negatively affect our stock price
• Global economic uncertainties and downturns or a downturn or consolidation in the real estate industry may decrease customer demand for our services and adversely affect our business and results of operations
• If we are unable to hire qualified persons for, or retain and continue to develop our sales force, or if our sales force is unproductive, our revenue could be adversely affected
• Our business depends on retaining and attracting highly capable management and operating personnel
• Our internal and external investments may place downward pressure on our operating margins
• Introducing new products may be difficult and expensive. If we are unable to do so successfully, our brands may be adversely affected, and we may not be able to maintain or grow our current revenue and profit levels
• We may be unable to increase awareness of our brands, including CoStar, LoopNet, Matterport, BizBuySell, STR, Apartments.com, Homes.com, Land.com, OnTheMarket, and Domain which could adversely affect our business
• If real estate professionals or other advertisers reduce or cancel their advertising spending with us and we are unable to attract new advertisers, our operating results would be harmed
• If we are not able to successfully identify, finance, integrate, and/or manage costs related to acquisitions, our business operations and financial position could be adversely affected
• We may not be able to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations
• We may be unable to realize the benefits of the acquisition of either Matterport or Domain, which could have an adverse effect on us
• If third-party suppliers upon which Matterport relies are not able to fulfill its needs, Matterport’s ability to timely and cost effectively bring its hardware products to market could be affected
• Cyberattacks and security vulnerabilities could result in material harm to our reputation, business, and financial condition
• The significant costs associated with undertaking a large infrastructure project to build out our campus in Richmond, Virginia, have impacted and will continue to impact our financial condition and results of operations
• Our current or future geographic expansion plans may not result in increased revenue, which may negatively impact our business, results of operations, and financial position
• We are subject to a number of risks related to acceptance of credit cards and debit cards and facilitation of other customer payments
• Climate-related events and other events beyond our control could harm our business
• Attention to corporate responsibility matters may require us to incur additional costs or otherwise adversely impact our business
• If we are not able to obtain and maintain accurate, comprehensive, or reliable data, we could experience reduced demand for our online marketplace services, information, and analytics
• If we are unable to enforce or defend our ownership and use of intellectual property, our business, brands, competitive position, and operating results could be harmed
• Use of new and evolving technologies, including AI, could impact our ability to protect our data and intellectual property from misappropriation by third parties
• We may be subject to legal liability for collecting, displaying, or distributing information, or integrating generative AI Technologies in our products and services
• If we fail to comply with the rules and compliance requirements of MLSs, our access to and use of listings data may be restricted or terminated and we may be unable to maintain stable data feeds
• International operations expose us to additional business risks, which may reduce our profitability
• Fluctuating foreign currency exchange rates may negatively impact our business, results of operations, and financial position
• We have a significant amount of indebtedness, which could decrease our flexibility and adversely affect our business, financial condition, and results of operations
• A lowering or withdrawal of the ratings assigned to our debt securities by rating agencies may increase our future borrowing costs, reduce our access to capital, or result in the loss of certain covenant suspensions
• Our actual or perceived failure to comply with privacy, security and evolving AI and data-related laws and standards could adversely affect our business, financial condition, and results of operations
• Changes in tax laws, regulations, or fiscal and tax policies, or the manner of their interpretation or enforcement could adversely impact our financial performance
• We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock

Filings

Other Real Estate companies