Is Colliers Stock a Good Investment Today?

Colliers is delivering strong revenue and EBITDA growth from acquisitions and AUM expansion, but high valuation and volatile results make it a patience-only buy.

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Key Points
  • Colliers posted double-digit revenue and EBITDA growth and raised guidance, fueled by acquisitions, engineering gains, and rising assets under management.
  • The stock offers virtually no dividend and trades at a premium, meaning investors pay for anticipated future growth.
  • Watch for integration risk, lumpy earnings, and headline-driven volatility—best suited for patient, growth-focused investors.

It can be hard to wade through the noise of the investment scene. There are just so many options out there to consider, which is why today we’re going to narrow our focus to just one: Colliers (TSX:CIGI). This growth-oriented real estate services and investment management firm can be a solid core holding for the right investor. So, let’s look at what makes it a great buy and who this Canadian stock might work for on the TSX today.

Lights glow in a cityscape at night.

Source: Getty Images

What’s happening?

First, let’s look at what’s been going on with this Canadian stock. Colliers recently reported second-quarter earnings for 2025, and earnings were quite impressive. Revenue rose 18% year over year, with net revenue up 16%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 16% as well.

The quarter also came with an increase in guidance for 2025, targeting the low teens for revenue growth and mid-teens for adjusted EBTIDA growth. That growth comes from engineering that’s surged from acquisitions and internal momentum. Plus, real estate services have grown, along with investment management assets under management. Altogether, the company is seeing its investments rise rapidly, allowing investors a great time to buy in.

Value and income

The thing is, investors then need to ask if those future earnings are already priced into the current share price. Here, we can look at valuations to make that call. This is especially important given that the dividend yield is next to nothing at 0.2%. Instead, the company focuses on tuck-ins and selective buybacks to offer value.

Right now, the market does seem to be paying a premium for Colliers. The stock trades at 21.2 times earnings, with earnings value over EBITDA at 16.2. Furthermore, it trades at a whopping 5.8 times book value. So, again, there’s a lot expected from this Canadian stock. And with debt at US$1.74 billion, it’ll need to deliver.

What to watch

So, what should investors watch if they’re interested in Colliers stock? The company has had some lumpy earnings, with results swinging widely due to acquisitions, redemptions, and valuation from investments. Plus, there’s always the risk of integrations not executing well, and this can lead to overpaying that erodes returns.

Colliers can therefore be great for investors wanting growth in the global commercial real estate services sector, plus scaled alternatives in assets under management. But this will come with quarterly headline volatility. It’s great for a compounder option in a diversified portfolio, but perhaps not so much as a core holding.

Bottom line

While long-term investors might do well, income investors wanting steady dividends will want to avoid Colliers stock for now. Furthermore, risk-averse buyers who are fearful of volatility and headline sensitivity will also not like this stock. However, patient investors can certainly look at this stock as a great opportunity for compounding wealth, especially coming off the back of strong earnings, future acquisitions, and buybacks. However, as with any investment, be sure to discuss any investment with your financial advisor. And that includes Colliers stock.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool has a disclosure policy.

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