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Cosol Limited (AU:COS)
ASX:COS
Australian Market
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Cosol Limited (COS) AI Stock Analysis

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AU:COS

Cosol Limited

(Sydney:COS)

Rating:65Neutral
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 (COS) vs. iShares MSCI Australia ETF (EWA)

Cosol Limited Business Overview & Revenue Model

Company DescriptionCOSOL 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 MoneyCosol 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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue101.93M75.10M48.24M33.58M11.67M
Gross Profit20.94M17.88M12.33M8.16M2.42M
EBITDA15.05M11.61M8.45M6.15M1.50M
Net Income8.52M7.99M5.53M4.00M1.51M
Balance Sheet
Total Assets112.55M78.86M60.37M38.29M30.02M
Cash, Cash Equivalents and Short-Term Investments6.62M4.56M6.22M4.18M6.77M
Total Debt24.67M15.05M9.38M2.53M391.65K
Total Liabilities43.18M36.20M25.90M13.12M10.52M
Stockholders Equity69.37M42.66M34.48M25.18M19.51M
Cash Flow
Free Cash Flow5.96M3.50M6.81M1.66M2.88M
Operating Cash Flow7.34M4.74M7.69M1.86M2.92M
Investing Cash Flow-22.31M-6.70M-10.57M-5.49M-9.40M
Financing Cash Flow17.02M248.94K4.79M1.07M13.25M

Cosol Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.62
Price Trends
50DMA
0.63
Negative
100DMA
0.70
Negative
200DMA
0.82
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
52.25
Neutral
STOCH
81.54
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$320.60M23.686.32%32.40%-2.97%
65
Neutral
AU$111.92M12.2312.90%3.89%23.66%-7.71%
63
Neutral
AU$108.02M125.003.26%5.37%-45.95%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
61
Neutral
AU$116.78M-7.65%20.24%27.33%
60
Neutral
AU$28.64M60.001.16%7.04%48.72%
54
Neutral
AU$180.44M33.61-5.30%15.87%-160.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:COS
Cosol Limited
0.62
-0.46
-42.59%
AU:CCG
Comms Group Ltd. (Australia)
0.05
0.00
0.00%
AU:KYP
CV Check Ltd
0.25
0.14
127.27%
AU:ATA
Atturra Limited
0.83
0.02
2.47%
AU:CCR
Credit Clear Limited
0.28
0.02
7.69%
AU:DUG
DUG Technology Ltd
1.32
-1.37
-50.93%

Cosol Limited Corporate Events

Microequities Updates Substantial Holding in COSOL Limited
Jul 4, 2025

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
Jul 2, 2025

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
Jun 23, 2025

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
Jun 4, 2025

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
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025