Cosol Limited (COS) AI Stock Analysis

• Market Cap: AU$111.92M
• Dividend Yield: 3.89%
• Average Volume (3M): 290.38K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.30
• Revenue Growth: 23.66%
• EPS Growth: -7.71%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 181,988,800
• 10 Day Avg. Volume: 28,305
• 30 Day Avg. Volume: 290,377
• PEG Ratio: -12.39
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.09
• 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$1.01
• Price Target Upside: 62.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: AU$0.50 ▼(-19.35%Downside)

Cosol Limited displays strong financial performance with robust growth and solid profitability, which is the most significant factor supporting its overall score. The stock's valuation is attractive, with a low P/E ratio and a healthy dividend yield, making it appealing for value investors. However, technical analysis suggests potential bearish momentum, as the stock trades below key moving averages and exhibits oversold conditions. This mixed technical outlook slightly offsets the positive financial and valuation aspects.

Cosol Limited Business Overview & Revenue Model

Company Description

COSOL Limited, together with its subsidiaries, provides information technology services in Australia. It utilizes proprietary software and services to deliver solutions for clients operating in asset-intensive industries with a focus on resource and capital-intensive enterprise asset management and infrastructure-focused systems. The company also provides digital business solutions, including business process and strategic reviews; data migration; and ongoing support services to clients, as well as implements enterprise resource planning/enterprise asset management solutions. It serves mining, utilities, public infrastructure, and defense industries. The company was incorporated in 2019 and is headquartered in Spring Hill, Australia.

How the Company Makes Money

Cosol Limited generates revenue primarily through the provision of consulting services and technology solutions aimed at enhancing the efficiency and effectiveness of enterprise asset management systems. The company's revenue streams include fees from data migration projects, system integration services, and ongoing support and maintenance contracts. Key partnerships with major technology providers enhance its ability to deliver comprehensive solutions, while long-term client relationships in sectors like mining and utilities ensure a steady flow of projects and service contracts. Additionally, Cosol may leverage proprietary tools and software to offer unique value propositions, thereby creating additional revenue opportunities.

Cosol Limited Financial Statement Overview

Summary

Cosol Limited's financial performance is impressive, with strong revenue growth of 35.7% and solid profitability indicators such as a gross profit margin of 20.5% and a net profit margin of 8.4%. The company's cash flow is robust, showing a 54.8% increase in operating cash flow and a 70.1% growth in free cash flow, indicating effective cash management. The balance sheet is healthy with a strong equity position and moderate leverage, though the increase in debt requires monitoring.

Income Statement

Cosol Limited demonstrates strong revenue growth, with a 35.7% increase in revenue from 2023 to 2024. The company maintains robust profitability, with a gross profit margin of 20.5% and a net profit margin of 8.4% in 2024. The EBIT margin of 13.1% and EBITDA margin of 14.8% further indicate solid operational efficiency. Overall, the income statement reflects excellent growth and stable profitability.

Balance Sheet

The balance sheet of Cosol Limited shows a healthy equity position with an equity ratio of 61.6%. The company has a manageable debt-to-equity ratio of 0.36, indicating moderate leverage. The return on equity (ROE) stands at 12.3%, suggesting efficient use of equity to generate profits. While the balance sheet is stable, the increase in total debt warrants monitoring.

Cash Flow

Cosol Limited's cash flow statement reveals strong operating cash flow growth, with a 54.8% increase from 2023 to 2024. The free cash flow has grown by 70.1%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 0.86 and free cash flow to net income ratio of 0.70 indicate effective cash management. Overall, the cash flow statements reflect solid liquidity and cash generation.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	101.93M	75.10M	48.24M	33.58M	11.67M
Gross Profit	20.94M	17.88M	12.33M	8.16M	2.42M
EBITDA	15.05M	11.61M	8.45M	6.15M	1.50M
Net Income	8.52M	7.99M	5.53M	4.00M	1.51M
Balance Sheet
Total Assets	112.55M	78.86M	60.37M	38.29M	30.02M
Cash, Cash Equivalents and Short-Term Investments	6.62M	4.56M	6.22M	4.18M	6.77M
Total Debt	24.67M	15.05M	9.38M	2.53M	391.65K
Total Liabilities	43.18M	36.20M	25.90M	13.12M	10.52M
Stockholders Equity	69.37M	42.66M	34.48M	25.18M	19.51M
Cash Flow
Free Cash Flow	5.96M	3.50M	6.81M	1.66M	2.88M
Operating Cash Flow	7.34M	4.74M	7.69M	1.86M	2.92M
Investing Cash Flow	-22.31M	-6.70M	-10.57M	-5.49M	-9.40M
Financing Cash Flow	17.02M	248.94K	4.79M	1.07M	13.25M

Cosol Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COS, the sentiment is Neutral. The current price of 0.62 is above the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.63, and below the 200-day MA of 0.82, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:COS.

Cosol Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATA	73 Outperform	AU$320.60M	23.68	6.32%	―	32.40%	-2.97%
COS	65 Neutral	AU$111.92M	12.23	12.90%	3.89%	23.66%	-7.71%
KYP	63 Neutral	AU$108.02M	125.00	3.26%	―	5.37%	-45.95%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
CCR	61 Neutral	AU$116.78M	―	-7.65%	―	20.24%	27.33%
CCG	60 Neutral	AU$28.64M	60.00	1.16%	7.04%	48.72%	―
DUG	54 Neutral	AU$180.44M	33.61	-5.30%	―	15.87%	-160.30%

Cosol Limited Corporate Events

Microequities Updates Substantial Holding in COSOL Limited

Microequities Asset Management Pty Ltd has lodged a Form 604 notice regarding a change in its substantial holding in COSOL Limited. This announcement indicates a shift in the voting power or interests held by Microequities in COSOL, which could impact the company’s influence or decision-making within COSOL Limited.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$1.10 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

Cosol Limited Announces Cessation of Securities

Cosol Limited has announced the cessation of certain securities. Specifically, 2,000,000 options set to expire on August 1, 2027, and 750,000 options expiring on November 10, 2025, have ceased due to expiry and lapse of conditional rights, respectively. This announcement may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s financial strategy.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$1.10 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

Microequities Adjusts Stake in COSOL Limited

Microequities Asset Management Pty Ltd has announced a change in its substantial holding in COSOL Limited, a company listed on the Australian Securities Exchange (ASX). This notice indicates a shift in Microequities’ investment strategy or position concerning COSOL Limited, potentially impacting the company’s market perception and investor relations.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$1.10 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

COSOL Limited Unveils Growth Strategy with AMaaS Focus

COSOL Limited has released a strategy update emphasizing its commitment to driving strong growth through its Asset Management as a Service (AMaaS) model. This approach is expected to enhance the company’s market position by offering tailored asset management solutions, which could significantly impact its operational efficiency and stakeholder value.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$1.20 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

COSOL Limited Projects Strong FY25 Revenue Growth and Outlines FY26 Strategy

COSOL Limited has announced its FY25 trading performance and provided guidance for FY26, highlighting a projected revenue increase of 16-19% compared to FY24, with organic growth at 10%. Despite facing timing challenges with new contracts and a pullback in the coal sector, COSOL expects higher statutory EBITDA for FY25. Looking ahead to FY26, the company anticipates high single-digit revenue growth and margin expansion driven by higher value data analytics and digital transformation contracts. COSOL’s growth strategy is reaching a critical point, with existing customer relationships evolving into multi-year managed services and Asset Management as a Service contracts, which are expected to accelerate and become a larger component of the company’s revenue mix.

The most recent analyst rating on (AU:COS) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.