Colliers International Group Inc. (CIGI.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Colliers International Group Inc.provides commercial real estate professional and investment management services to corporate and institutional clients in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.It offers sales brokerage services, including real estate sales, debt origination and placement, equity capital raising, market value opinions, acquisition advisory, and transaction management services; and landlord and tenant representation services.

The company provides outsourcing and advisory services, such as corporate and workplace solutions; valuation and advisory services; workplace strategy services; loan servicing; property marketing; research services; and engineering design services for property and building, infrastructure, transportation, environmental and telecommunications end-markets.It also offers property management services comprising building operations and maintenance, facilities management, lease administration, property accounting and financial reporting, contract management and, construction management; and project management services, which include bid document review, construction monitoring and delivery management, contract administration and integrated cost control, development management, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management and strategic project consulting.In addition, the company provides investment management services that consists of asset management advisory and administration, transaction, and incentive services.

The company was founded in 1972 and is headquartered in Toronto, Canada.

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1.b. Last Insights on CIGI

Colliers International Group's recent performance was negatively driven by weak Q4 earnings, which missed estimates by -5.44% despite a 22% revenue increase, driven by robust performance across segments. The company's net income of $1.47 per share fell short of expectations, partly offset by strong revenue growth. Additionally, the stock's downward momentum after the earnings release, with a 3.4% pre-market drop, suggests investor disappointment with the results.

1.c. Company Highlights

Last Price	155.13
Change Percentage	-3.42%
Open	161.03
Previous Close	160.62
Market Cap ( Millions)	7697
Volume	850936
Year High	239.26
Year Low	135.9
M A 50	195.55
M A 200	199.56

FCF Yield	3.55%
Dividend Yield	0.26%
ROE	8.53%
Debt / Equity	173.52%
Net Debt / EBIDTA	366.05%
Price To Book	2.87
Price Earnings Ratio	35.36
Price To FCF	28.19
Price To sales	1.03
EV / EBITDA	12.65

2. Colliers International's Strong 2025 Earnings: A Resilient Business Model

Colliers International reported an exceptional 2025, with 70% of earnings from resilient businesses, approaching 75% with recent acquisitions. The fourth quarter saw revenues of $1,600,000,000, up 5% year-over-year, with adjusted EBITDA of $245,000,000, up 6%. The company's actual EPS came out at $3.19, significantly beating estimates at $1.01. The Commercial Real Estate segment net revenue was up 7%, driven by a 13% increase in capital markets revenues, led by strong activity in the US.

Publication Date: Feb -15

                                    📋 Highlights
                                    Strong Q4 Financial Performance:
                                                Revenue of $1.6B increased 5% YoY, adjusted EBITDA of $245M rose 6% YoY.
Commercial Real Estate Growth:
                                                Segment net revenue up 7%, driven by 13% capital markets growth led by U.S. activity.
Engineering Segment Expansion:
                                                Net revenue grew 8% with acquisitions contributing; Ayesa acquisition to add 0.7x leverage.
Investment Management Scale:
                                                Net revenue rose 6%, managing $108B AUM; 2026 EBITDA from Ayesa expected at $6.3M.
AI & Strategic Acquisitions:
                                                AI to boost productivity and margins over 2–3 years; Ayesa expands into Europe/Latin America with 13% historical CAGR.

                                

Segment Performance

The Engineering segment net revenue was up 8%, with recent acquisitions contributing to growth. Investment management net revenues increased 6%, driven by a recent acquisition, with $108,000,000,000 in assets under management. The company's acquisition of Ayesa Engineering is expected to add 0.7 turns of leverage and will be funded through a revolving credit facility.

Growth Prospects

For 2026, Colliers expects mid-teens growth in key operating metrics, with low-teens top-line growth in Commercial Real Estate, mid-single-digit internal growth in Engineering, and low-teens net revenue growth in Investment Management. The company sees AI as a productivity and growth enabler, helping to automate routine work, improve efficiency, and expand margins. As Christian Mayer, Colliers' executive, noted, "AI will be used to accelerate automation, increase efficiency, and provide more information to professionals."

Valuation Metrics

Colliers International's current valuation metrics indicate a P/E Ratio of 35.36, P/B Ratio of 2.87, and EV/EBITDA of 12.65. The company's ROE stands at 8.53%, and Net Debt / EBITDA is 3.66. Analysts estimate next year's revenue growth at 8.0%, indicating a stable growth trajectory.

Investment Management Business

In the investment management business, margins are expected to decline in 2026 to the high 30s and return to the mid-40s in 2027. The company's fundraising target is $6 billion to $9 billion, driven by various platforms, including infrastructure, alternatives, and credit. Fund performance has been strong, ranking in the top quartile across alts, credit, and infrastructure.

Acquisition Strategy

The acquisition of Ayesa provides a foothold in Europe and other markets, with expectations of growth through roll-up opportunities. The company's approach to AI is viewed as a tool to enhance its professionals' capabilities, not a disruptor. The company plans to deleverage over time, with a goal of returning to a 2x leverage ratio.

3. NewsRoom

Colliers International Group Inc (CIGI) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...

Feb -13

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Raymond James Upgrades Colliers International Group Inc. (CIGI) to Strong Buy and Raises its Price Target to $200

Feb -13

Source:

Colliers International Group Inc. Q4 2025 Earnings Call Summary

Feb -13

Source:

Colliers International Group Q4 Earnings Call Highlights

Feb -13

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Here's What Key Metrics Tell Us About Colliers International (CIGI) Q4 Earnings

Feb -13

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Colliers International (CIGI) Q4 Earnings Miss Estimates

Feb -13

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Colliers International Q4 Net Earnings Fall

Feb -13

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Colliers International: Q4 Earnings Snapshot

Feb -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.77%)

6. Segments

Leasing

Expected Growth: 12%

Colliers International Group Inc.'s 12% leasing growth driven by increasing demand for industrial and logistics spaces, e-commerce growth, and urbanization. Additionally, the company's strategic expansion into new markets, investments in technology, and strong relationships with clients contribute to its growth momentum.

Engineering and Design and Project Management

Expected Growth: 10%

Colliers International Group Inc.'s Engineering and Design, and Project Management segments are driven by increasing infrastructure development, urbanization, and government investments in construction projects. Growing demand for sustainable and energy-efficient buildings, coupled with the need for project management expertise, fuels growth. The 10% growth rate is also attributed to the company's strategic acquisitions and expansion into new markets.

Capital Markets

Expected Growth: 16%

Colliers International Group Inc.'s 16% growth in Capital Markets is driven by increasing demand for commercial real estate services, strategic acquisitions, and expansion into new markets. Additionally, the company's diversified revenue streams, strong brand reputation, and expertise in investment sales, debt and equity financing, and advisory services contribute to its growth momentum.

Property Management

Expected Growth: 11%

Colliers International Group Inc.'s Property Management segment growth of 11% is driven by increasing demand for outsourced real estate services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology integration, sustainability, and client-centric services has enhanced its competitive advantage, attracting new clients and retaining existing ones.

Investment Management - Advisory and Other

Expected Growth: 13%

Colliers International Group Inc.'s 13% growth in Investment Management - Advisory and Other is driven by increasing demand for real estate investment advice, expansion into new markets, and strategic acquisitions. Additionally, the company's diversified client base, strong brand reputation, and expertise in alternative asset classes contribute to its growth momentum.

Valuation and Advisory

Expected Growth: 9%

Colliers International Group Inc.'s Valuation and Advisory segment growth is driven by increasing demand for commercial real estate services, expansion into new markets, and strategic acquisitions. The 9% growth rate is also attributed to the company's expertise in providing tailored solutions, strong client relationships, and a robust pipeline of projects.

Other

Expected Growth: 8%

Colliers International Group Inc.'s 'Other' segment growth is driven by increasing demand for global consulting services, expansion into new markets, and strategic acquisitions. Additionally, the company's investments in technology and innovation, such as its proprietary platform, are enhancing operational efficiency and driving revenue growth.

Investment Management - Incentive Fees

Expected Growth: 15%

Colliers International Group Inc.'s 15% growth in Investment Management - Incentive Fees is driven by increasing assets under management, rising commercial property values, and a growing demand for real estate investment services. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth.

7. Detailed Products

Agency Leasing

Colliers International provides agency leasing services to landlords, helping them to maximize their property's potential and achieve optimal rental income.

Tenant Representation

Colliers International offers tenant representation services, helping businesses find the right space that meets their needs and budget.

Capital Markets

Colliers International provides capital markets services, including investment sales, debt and equity financing, and joint ventures.

Valuation and Advisory

Colliers International offers valuation and advisory services, providing clients with accurate and reliable valuations of their properties.

Property Management

Colliers International provides property management services, including day-to-day operations, maintenance, and financial management.

Project Management

Colliers International offers project management services, helping clients to plan, design, and deliver construction projects on time and within budget.

Research and Consulting

Colliers International provides research and consulting services, offering insights and advice on market trends, feasibility studies, and strategic planning.

8. Colliers International Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Colliers International Group Inc. is medium due to the presence of alternative commercial real estate services providers.

Bargaining Power Of Customers

The bargaining power of customers for Colliers International Group Inc. is low due to the company's strong brand reputation and diversified client base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Colliers International Group Inc. is medium due to the presence of multiple suppliers of commercial real estate services.

Threat Of New Entrants

The threat of new entrants for Colliers International Group Inc. is high due to the relatively low barriers to entry in the commercial real estate services industry.

Intensity Of Rivalry

The intensity of rivalry for Colliers International Group Inc. is high due to the presence of several established competitors in the commercial real estate services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	71.59%
Debt Cost	6.47%
Equity Weight	28.41%
Equity Cost	12.08%
WACC	8.07%
Leverage	251.99%

11. Quality Control: Colliers International Group Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

National Storage

A-Score: 6.4/10

Value: 5.7

Growth: 5.3

Quality: 7.1

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

American Homes

A-Score: 6.0/10

Value: 3.2

Growth: 6.3

Quality: 5.8

Yield: 7.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

CubeSmart

A-Score: 6.0/10

Value: 3.4

Growth: 6.2

Quality: 5.7

Yield: 9.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

Jones Lang LaSalle

A-Score: 4.9/10

Value: 4.3

Growth: 5.2

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

FirstService

A-Score: 4.8/10

Value: 3.2

Growth: 7.8

Quality: 4.7

Yield: 1.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Colliers

A-Score: 4.1/10

Value: 3.0

Growth: 4.4

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

26.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.07%

Colliers International Group Inc. - CA1946931070

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CIGI

1.c. Company Highlights

Lower Yield

Stable Momentum

Average Quality

Earnings Miss

Strong Momentum

Revenues Beats

Expensive

Revenues Miss

Earnings Beats

Lower Quality

Medium Volatility

Fairly Valued

2. Colliers International's Strong 2025 Earnings: A Resilient Business Model

Segment Performance

Growth Prospects

Valuation Metrics

Investment Management Business

Acquisition Strategy

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.77%)

6. Segments

Leasing

Expected Growth: 12%

Engineering and Design and Project Management

Expected Growth: 10%

Capital Markets

Expected Growth: 16%

Property Management

Expected Growth: 11%

Investment Management - Advisory and Other

Expected Growth: 13%

Valuation and Advisory

Expected Growth: 9%

Other

Expected Growth: 8%

Investment Management - Incentive Fees

Expected Growth: 15%

7. Detailed Products

Agency Leasing

Tenant Representation

Capital Markets

Valuation and Advisory

Property Management

Project Management

Research and Consulting

8. Colliers International Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Colliers International Group Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

12.e Scoring ^Insights

12.f DCF ^BETA