Cosol Limited (COS) AI Stock Analysis

• Market Cap: AU$54.60M
• Dividend Yield: 4.66%
• Average Volume (3M): 39.05K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.36
• Revenue Growth: 14.59%
• EPS Growth: -11.13%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.18
• Shares Outstanding: 181,988,800
• 10 Day Avg. Volume: 20,463
• 30 Day Avg. Volume: 39,051
• PEG Ratio: -1.27
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 19.96
• 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$0.32
• Price Target Upside: -36.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$106.00M

• Rating: 67 Neutral
• Price Target: AU$0.33 ▼(-34.80% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by stable overall financial performance with improving gross margins, tempered by weaker profitability, higher leverage, and softer free cash flow. Valuation is supportive due to the high dividend yield and moderate P/E, while technical indicators remain bearish with the price below major moving averages despite oversold readings.

Positive Factors

Recurring / Managed Services

COSOL's mix includes longer-duration managed services and support retainers, which increase revenue visibility and client stickiness. Structural shift toward recurring EAM contracts supports steadier cash flows, higher lifetime customer value and easier scaling of advisory-to-managed-service offerings.

Gross Margin Expansion

A material gross margin improvement signals better cost management and/or a shift to higher-value services (EAM implementations, advisory). Sustained higher gross margins provide structural capacity to absorb SG&A, fund investment in skills and technology, and improve resilience to pricing pressure in project work.

Consistent Revenue Growth

Repeatable top-line growth demonstrates ongoing demand for asset management and engineering services across resources, energy and infrastructure. Sustainable revenue expansion supports scale benefits, steady utilization of skilled staff, and the ability to invest in capability building and long-term client relationships.

Negative Factors

Rising Leverage

Higher leverage reduces financial flexibility for a services firm reliant on skilled labour and project funding. Increased debt elevates interest and refinancing risk, constrains capital allocation for technology or acquisitions, and weakens the company's ability to weather project delays or cyclical slowdowns.

Declining Profitability

Eroding net and operating margins point to rising overheads, lower realization rates, or mix shift toward lower-margin work. Persistently lower profitability undermines ROE and retained earnings, limiting reinvestment capacity and making it harder to fund margin-improving initiatives without structural cost or pricing changes.

Weaker Free Cash Flow

A decline in free cash flow and suboptimal cash conversion reduces headroom for debt reduction, dividend sustainability, or strategic investment. For a project-based services business, weak FCF heightens exposure to working-capital swings and can limit the ability to invest in recurring-service capabilities that drive long-term value.

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 through multiple streams, primarily by offering subscription-based services for its software products and cloud solutions. The company charges clients a recurring fee for access to its platforms, which include data analytics and project management tools. Additionally, Cosol earns revenue from consultancy services, where it provides expert advice and implementation support to organizations seeking to optimize their IT infrastructure. Strategic partnerships with other technology firms and integrators also contribute significantly to its earnings, as these collaborations enable Cosol to expand its market reach and enhance its service offerings, ultimately driving sales growth.

Cosol Limited Financial Statement Overview

Summary

Solid revenue growth and a sharply improved gross margin support the score, but profitability metrics (net profit, EBIT/EBITDA margins) have weakened, leverage has risen (debt-to-equity 0.42), and free cash flow dipped, indicating moderate financial risk despite overall stability.

Income Statement

Cosol Limited has demonstrated consistent revenue growth over the years, with a 5.54% increase in the latest period. The gross profit margin has improved significantly from 20.55% in 2024 to 31.75% in 2025, indicating better cost management. However, the net profit margin has decreased slightly from 8.36% to 6.76%, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins have also seen a decline, which could impact profitability if not addressed.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.42, reflecting higher leverage, which could pose a risk if not managed properly. Return on equity has decreased from 12.28% to 10.27%, indicating a slight decline in efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced approach to financing assets through equity.

Cash Flow

Operating cash flow has increased slightly, but free cash flow has decreased by 3.81%, indicating potential challenges in generating cash from operations. The free cash flow to net income ratio remains strong at 79.47%, showing that the company is still generating cash relative to its net income. However, the operating cash flow to net income ratio is relatively low, suggesting room for improvement in cash generation efficiency.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	108.66M	116.81M	101.93M	75.10M	48.24M	33.58M
Gross Profit	14.55M	37.09M	20.94M	17.88M	12.33M	8.16M
EBITDA	10.75M	15.79M	15.05M	11.61M	8.45M	6.15M
Net Income	3.55M	7.89M	8.52M	7.99M	5.53M	4.00M
Balance Sheet
Total Assets	126.91M	133.27M	112.55M	78.86M	60.37M	38.29M
Cash, Cash Equivalents and Short-Term Investments	6.04M	6.09M	6.62M	4.56M	6.22M	4.18M
Total Debt	30.55M	32.36M	24.67M	15.05M	9.38M	2.53M
Total Liabilities	52.60M	56.38M	43.18M	36.20M	25.90M	13.12M
Stockholders Equity	74.31M	76.90M	69.37M	42.66M	34.48M	25.18M
Cash Flow
Free Cash Flow	10.03M	6.04M	5.96M	3.50M	6.81M	1.66M
Operating Cash Flow	10.33M	7.60M	7.34M	4.74M	7.69M	1.86M
Investing Cash Flow	-1.12M	-10.52M	-22.31M	-6.70M	-10.57M	-5.49M
Financing Cash Flow	-6.78M	2.38M	17.02M	248.94K	4.79M	1.07M

Cosol Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COS, the sentiment is Negative. The current price of 0.5 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.45, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 31.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:COS.

Cosol Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COS	67 Neutral	AU$54.60M	15.13	10.79%	4.66%	14.59%	-11.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CCR	61 Neutral	AU$106.89M	17.23	5.74%	―	11.72%	―
ATA	60 Neutral	AU$212.07M	273.81	4.81%	―	23.53%	-23.98%
KYP	56 Neutral	AU$74.39M	44.74	4.26%	―	11.90%	42.11%
CCG	46 Neutral	AU$40.44M	67.27	-1.89%	3.45%	2.06%	-277.78%
DUG	46 Neutral	AU$284.54M	116.02	-10.10%	―	-3.10%	-236.41%

Cosol Limited Corporate Events

COSOL releases FY26 H1 results presentation with extensive disclaimers

COSOL Limited has released its FY26 first-half results presentation, emphasising that the material is for information purposes only and should be read alongside its prior ASX disclosures. The company stresses that the document is not financial advice, an offer of securities, or a prospectus, and that past performance data is illustrative rather than indicative of future outcomes.

The release highlights extensive disclaimers around the use of non-IFRS financial metrics, the inherent uncertainty of any forward-looking statements, and the absence of any warranty as to the completeness or accuracy of the information provided. COSOL notes that the presentation was authorised by its board on 25 February 2026 and cautions investors to seek independent advice, underscoring a conservative legal and compliance posture in its market communications.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$0.41 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

Cosol cuts costs and pivots to digital as profit slumps on weaker mining demand

Cosol reported underlying EBITDA of $3.5 million on revenue of $49.6 million for the half year to 31 December 2025, with revenue down 14.1% and EBITDA down 57% amid the end of major contracts, under-utilised staff and a softer sales pipeline. The company has responded with cost cuts, leadership and sales restructuring, and a pivot in asset management services from coal towards gold and lithium producers.

Management flagged a stronger second half supported by an improved sales pipeline, a $1 million annualised cost-out program and growing digital and data-led advisory work. Key wins include rising recurring revenue from its OnPlan software and multi-year managed services deals with government, utilities and transport clients, underpinning Cosol’s push toward more stable, annuity-style earnings despite recent weakness in its traditional mining-focused business.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$0.41 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

Cosol Securities Lapse Reduces Potential Equity Dilution

Cosol Limited has notified the ASX that a series of performance rights and share options on issue have lapsed after the relevant vesting or exercise conditions were not met or became incapable of being satisfied. The cessation affects nearly 400,000 performance rights and 2.2 million options with various exercise prices and expiry dates, effective 31 December 2025, resulting in a reduction of potential future equity dilution for existing shareholders and signalling that certain performance or service milestones tied to these securities were not achieved.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$0.42 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

COSOL Limited Announces Director’s Interest Change for Scott McGowan

COSOL Limited announced a change in the director’s interest notice for Scott McGowan, the Managing Director, reflecting an acquisition of 1,600,000 performance rights. This update is part of COSOL’s ongoing commitment to transparency and regulatory compliance, potentially impacting the company’s governance and stakeholder relations.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.

Cosol Limited Issues Unquoted Equity Securities for Employee Incentives

Cosol Limited has announced the issuance of 1,600,000 unquoted equity securities under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to motivate and retain key personnel by offering performance rights that expire on December 31, 2028, potentially impacting the company’s operational dynamics and aligning employee interests with long-term company goals.

The most recent analyst rating on (AU:COS) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Cosol Limited stock, see the AU:COS Stock Forecast page.