COG Financial Services Limited (COG) AI Stock Analysis

• Market Cap: AU$321.93M
• Dividend Yield: 3.76%
• Average Volume (3M): 238.57K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.35
• Revenue Growth: 16.16%
• EPS Growth: 32.97%
• Country: AU
• Employees: 1,000
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Capital Markets
• EPS (TTM): 0.06
• Shares Outstanding: 201,838,010
• 10 Day Avg. Volume: 201,505
• 30 Day Avg. Volume: 238,567
• PEG Ratio: -0.27
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.62
• Price Target Upside: 1.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: AU$1.50 ▼(-6.25%Downside)

COG Financial Services Limited demonstrates strong technical momentum and solid financial performance, driven by robust revenue and cash flow growth. However, the stock's high P/E ratio suggests potential overvaluation risks, balanced by a solid dividend yield. The absence of recent earnings call and corporate events data limits further insight into company prospects.

COG Financial Services Limited Business Overview & Revenue Model

Company Description

COG Financial Services Limited, together with its subsidiaries, engages in equipment financing and broking, aggregation, insurance broking, and novated leasing activities in Australia. The company operates through three segments: Finance Broking and Aggregation; Funds Management and Lending; and All Other/Intersegment. It also provides management of investment funds; provides financing arrangements to commercial customers for essential business assets; and managed IT services. The company was formerly known as Consolidated Operations Group Limited and changed its name to COG Financial Services Limited in November 2020. COG Financial Services Limited was incorporated in 2002 and is based in Chatswood, Australia.

How the Company Makes Money

COG Financial Services Limited generates revenue primarily through interest and fee income associated with its lending and leasing activities. The company earns interest by providing loans and asset-backed financing solutions to SMEs, leveraging its expertise in assessing credit risk and structuring financing deals. Additionally, COG generates revenue through leasing arrangements, where businesses lease equipment and pay periodic rental fees. Another significant revenue stream comes from origination and management fees related to the administration of finance contracts. COG may also benefit from strategic partnerships with financial institutions and manufacturers, allowing it to expand its product offerings and reach a wider client base, thus contributing to its earnings.

COG Financial Services Limited Financial Statement Overview

Summary

COG Financial Services Limited exhibits solid revenue and cash flow growth, reflecting operational strength and effective cost management. However, the company faces challenges with low net profitability and high leverage, which could impact financial stability. Overall, the financial position is strong with room for improvements in profitability and leverage management.

Income Statement

COG Financial Services Limited has shown strong revenue growth with a Revenue Growth Rate of 36.3% from 2023 to 2024. The Gross Profit Margin improved significantly, up to 58.7% in 2024, indicating efficient cost management. However, the Net Profit Margin remains relatively low at 2.6%, suggesting some profitability challenges. The EBIT Margin and EBITDA Margin are moderate at 6.5% and 14.9%, respectively, reflecting stable operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio increased to 2.48, indicating a high level of leverage, which might pose financial risk. The Return on Equity (ROE) is modest at 8.5%, showing average efficiency in generating returns. The Equity Ratio stands at 22.1%, suggesting a moderate level of financial stability, albeit with a risk of over-leverage.

Cash Flow

COG Financial Services Limited demonstrates robust cash flow management with a Free Cash Flow to Net Income Ratio of 2.77, indicating strong cash conversion. The Operating Cash Flow to Net Income Ratio is also healthy at 3.61, suggesting efficient earnings generation. However, the Free Cash Flow Growth Rate of 24.9% shows positive momentum in cash flow growth.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	512.48M	498.98M	366.01M	320.77M	267.77M	215.86M
Gross Profit	293.72M	292.95M	132.47M	105.39M	92.26M	70.71M
EBITDA	75.90M	74.28M	62.41M	53.25M	48.32M	26.85M
Net Income	12.21M	12.85M	8.05M	19.68M	-26.38M	-10.05M
Balance Sheet
Total Assets	557.10M	687.12M	593.00M	518.22M	476.69M	326.16M
Cash, Cash Equivalents and Short-Term Investments	107.62M	125.68M	101.80M	76.11M	94.51M	31.86M
Total Debt	251.73M	376.75M	283.73M	243.27M	225.94M	97.05M
Total Liabilities	349.56M	483.49M	378.53M	310.61M	287.03M	133.77M
Stockholders Equity	157.25M	151.69M	163.92M	170.95M	152.34M	174.18M
Cash Flow
Free Cash Flow	47.54M	35.66M	28.55M	205.73M	187.95M	61.14M
Operating Cash Flow	53.51M	46.36M	31.79M	208.19M	190.85M	62.82M
Investing Cash Flow	-97.54M	-87.16M	-19.53M	-201.93M	-75.11M	-56.43M
Financing Cash Flow	71.61M	64.69M	13.44M	-24.67M	-55.92M	2.26M

COG Financial Services Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COG, the sentiment is Positive. The current price of 1.6 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.45, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:COG.

COG Financial Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COG	74 Outperform	AU$321.93M	25.85	7.94%	3.76%	16.16%	32.97%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
HM3			―		―	―	―
2RC		€520.70M	7.98	13.05%	4.67%	―	―
AFG	74 Outperform	AU$606.52M	20.35	15.01%	3.47%	9.49%	-0.36%
PPS	57 Neutral	AU$303.35M	29.26	9.89%	1.57%	23.52%	7.96%

COG Financial Services Limited Corporate Events

COG Financial Services Announces Successful General Meeting Outcomes

COG Financial Services Limited announced the successful outcomes of its General Meeting, where all proposed resolutions were passed by poll. This includes the election of directors and approval of options issuance, reflecting strong shareholder support and potentially enhancing the company’s governance and strategic direction.

The most recent analyst rating on (AU:COG) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on COG Financial Services Limited stock, see the AU:COG Stock Forecast page.

COG Financial Services Sees Change in Substantial Holder Interests

COG Financial Services Limited, a company listed on the ASX, has announced a change in the interests of a substantial holder as per the Corporations Act 2001. NAOS Asset Management Limited and related parties have reduced their voting power in COG Financial Services from 12.14% to 10.16%, reflecting a decrease in the number of ordinary shares held. This change may impact the company’s shareholder dynamics and influence future decision-making processes.

The most recent analyst rating on (AU:COG) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on COG Financial Services Limited stock, see the AU:COG Stock Forecast page.

COG Financial Services Sells Stake in Earlypay Limited

COG Financial Services Limited has announced that it has ceased to be a substantial holder in Earlypay Limited as of May 22, 2025. This change was due to an on-market sale of over 58 million ordinary shares, amounting to a consideration of approximately $12.76 million. The divestment could impact COG’s investment strategy and influence its financial position, while potentially affecting Earlypay’s shareholder structure and market perception.

The most recent analyst rating on (AU:COG) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on COG Financial Services Limited stock, see the AU:COG Stock Forecast page.

COG Financial Services Adjusts Investment in Centrepoint Alliance

COG Financial Services Limited has announced that it ceased to be a substantial holder in Centrepoint Alliance Limited as of May 21, 2025. This change was due to on-market sales totaling over $13.8 million, affecting a significant number of voting securities. The announcement indicates a strategic shift in COG’s investment portfolio, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:COG) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on COG Financial Services Limited stock, see the AU:COG Stock Forecast page.

COG Financial Services Updates Securities Issue Timeline

COG Financial Services Limited announced an update regarding the proposed issue of securities, notifying the market of the actual Extraordinary General Meeting (EGM) date and the revised proposed issue date. This update is crucial for stakeholders as it provides clarity on the timeline for the securities issue, which could impact the company’s market operations and investor relations.

The most recent analyst rating on (AU:COG) stock is a Buy with a A$1.61 price target. To see the full list of analyst forecasts on COG Financial Services Limited stock, see the AU:COG Stock Forecast page.

COG Financial Services Director Increases Shareholding

COG Financial Services Limited announced a change in the director’s interest, with John Dwyer acquiring 311,753 ordinary fully paid shares through an on-market acquisition, increasing his total holdings to 4,500,000 shares. This acquisition reflects a strategic move by the director, potentially signaling confidence in the company’s future performance and impacting stakeholder perceptions positively.

1851 Capital Becomes Substantial Holder in COG Financial Services

COG Financial Services Ltd has announced that 1851 Capital Pty Ltd has become a substantial holder in the company as of April 17, 2025. 1851 Capital Pty Ltd acquired 10,527,058 ordinary shares, representing a 5.22% voting power in COG Financial Services Ltd. This acquisition may influence the company’s shareholder dynamics and potentially impact its strategic decisions moving forward.

COG Financial Services Director Increases Shareholding

COG Financial Services Limited announced a change in the director’s interest, with John Dwyer acquiring an additional 500,000 ordinary fully paid shares at a value of $1.14 per share, totaling $570,000. This acquisition increases his total holdings to 4,188,247 shares, potentially strengthening his influence within the company and signaling confidence in its future prospects.

COG Financial Services Reports Strong Q3 FY25 Performance with Novated Leasing Surge

COG Financial Services Limited reported a 5% increase in underlying performance for Q3 FY25, driven by strong growth in its Novated Leasing segment. The company experienced record volumes in March, attributed to the end of tax incentives for Plug-in Hybrid Electric Vehicles. COG has also strengthened its position as a government salary packaging and novated lease provider by joining panels for WA Police and Tasman Health Department. Despite a reduced contribution from its TL Commercial operating lease business, which ceased new business in FY20, COG continues to see significant growth opportunities through consolidation and organic expansion across its business segments.

COG Financial Services Appoints John Dwyer as Non-Executive Director

COG Financial Services Limited has announced the appointment of John Dwyer as a Non-Executive Director effective April 3, 2025. Dwyer holds a significant interest in the company through 3,688,247 ordinary fully paid shares held by Glendale Dwyer Pty Ltd. Additionally, he is set to receive 2,500,000 unlisted options, contingent on shareholder approval, which are exercisable at $1.30 and expire in March 2028 or six months after he ceases to be a director. This appointment and the associated incentives may influence the company’s strategic direction and governance.

COG Financial Services Appoints New Chair with Strategic Shareholding

COG Financial Services Limited announced the appointment of Antony Robinson as a Non-Executive Director and Chair, effective April 3, 2025. Robinson holds 2,500,000 ordinary fully paid shares through Robinson House Pty Ltd and has been granted 2,500,000 unlisted options, exercisable at $1.30. This strategic appointment is expected to strengthen the company’s leadership and potentially enhance its market position.

COG Financial Services Announces Proposed Securities Issue

COG Financial Services Limited announced a proposed issue of up to 5,000,000 new securities, with an exercise price of $1.30, set to expire on March 31, 2028. This move is part of a placement or other type of issue, with the proposed issue date being June 6, 2025, potentially impacting the company’s market positioning and offering new opportunities for stakeholders.

COG Financial Services Announces Director Resignation

COG Financial Services Limited announced the resignation of Mark Crain as a director, effective April 3, 2025. This change in the board may impact the company’s strategic direction and governance, as Crain held significant shares through associated entities, which could influence shareholder dynamics.

COG Financial Services Announces Director Departure

COG Financial Services Limited announced the cessation of Stephen White as a director, effective April 3, 2025. At the time of his departure, White held no direct securities but had an indirect interest in 250,000 ordinary fully paid shares through a related entity, SLAUBENK PTY LTD. This change in directorship may impact the company’s governance structure and could have implications for its strategic direction.

COG Financial Services Director Adjusts Shareholding

COG Financial Services Limited announced a change in the director’s interest, with Stephen White disposing of 144,875 ordinary fully paid shares at an average price of $1.1901 per share, totaling $172,413.64. This transaction reduces his indirect holding to 250,000 shares, and it was conducted as an on-market sale, not during a closed period, indicating a strategic adjustment in shareholding by the director.

COG Financial Services Announces Director Change

COG Financial Services Limited announced the cessation of Patrick Tuttle as a director effective April 3, 2025. The notice highlights that Tuttle holds no direct securities but has an indirect interest in 285,005 ordinary fully paid shares through Bond Street Custodians Limited. This change in directorship may impact the company’s strategic direction and stakeholder relations.

COG Financial Services Sees Shift in Substantial Shareholder Interests

COG Financial Services Limited, listed on the ASX, has announced a change in the interests of a substantial holder. NAOS Asset Management Limited has reduced its voting power in COG Financial Services from 16.56% to 12.14%, indicating a significant shift in shareholder dynamics. This change may impact the company’s market position and influence among stakeholders, as it reflects a notable adjustment in the ownership structure.