CoStar Group, Inc. — Earnings Quality Grade C
CSGP · Real Estate
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 26 days, change +1 days YoY
AR growth 24.5% vs revenue growth 18.7%
Revenue 18.7%, CFFO 9.4%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -39.0% vs revenue 18.7%. Normal
SG&A/Gross Profit = 82.4%, exceeds 70%
Gross margin 78.9%, change -0.7pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 61.4x). Non-cash charges depressing profits
FCF $0.0B, FCF/NI = 5.86
Accruals ratio = -4.0%. Low accruals
Cash $1.6B covers debt $1.2B
Balance Sheet Health
Goodwill+Intangibles $6.7B = 81% of equity. Over 50%
Debt/EBITDA = 6.2x (>4x). Financial stress
Other assets 0.0% vs revenue 18.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 127% YoY
Manipulation Score
M-Score = -2.10 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09