Cosol Limited (COS) AI Stock Analysis

• Market Cap: AU$110.10M
• Dividend Yield: 3.31%
• Average Volume (3M): 405.93K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.38
• 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: 306,633
• 30 Day Avg. Volume: 405,927
• PEG Ratio: 0.40
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.13
• 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: 68.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: AU$0.50 ▼(-16.67%Downside)

Cosol Limited's strong financial performance, characterized by robust revenue growth and profitability, is the key driver of its overall score. Valuation metrics are attractive with a reasonable P/E ratio and solid dividend yield. However, technical indicators suggest caution due to bearish momentum and potential overbought conditions.

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 a combination of software licensing, consulting services, and managed services contracts. Key revenue streams include fees from software sales and subscriptions, which provide clients with advanced tools for asset management and data analytics. Additionally, Cosol earns income from consulting and implementation services, helping clients optimize their enterprise systems and improve business processes. The company also benefits from long-term managed services agreements, where it provides ongoing support and maintenance for client systems. Strategic partnerships with technology providers and industry players further enhance Cosol's market reach and contribute to its revenue growth.

Cosol Limited Financial Statement Overview

Summary

Cosol Limited's financial statements exhibit robust growth, solid profitability, and efficient cash management. Strong revenue growth and profitability are supported by effective operational strategies. While an increase in debt is noted, the overall financial health remains strong.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	110.67M	101.93M	75.10M	48.24M	33.58M	11.67M
Gross Profit	25.03M	20.94M	17.88M	12.33M	8.16M	2.42M
EBITDA	14.45M	15.05M	11.61M	8.45M	6.15M	1.50M
Net Income	8.94M	8.52M	7.99M	5.53M	4.00M	1.51M
Balance Sheet
Total Assets	137.38M	112.55M	78.86M	60.37M	38.29M	30.02M
Cash, Cash Equivalents and Short-Term Investments	3.65M	6.62M	4.56M	6.22M	4.18M	6.77M
Total Debt	32.38M	24.67M	15.05M	9.38M	2.53M	391.65K
Total Liabilities	62.37M	43.18M	36.20M	25.90M	13.12M	10.52M
Stockholders Equity	75.01M	69.37M	42.66M	34.48M	25.18M	19.51M
Cash Flow
Free Cash Flow	6.28M	5.96M	3.50M	6.81M	1.66M	2.88M
Operating Cash Flow	6.66M	7.34M	4.74M	7.69M	1.86M	2.92M
Investing Cash Flow	-13.51M	-22.31M	-6.70M	-10.57M	-5.49M	-9.40M
Financing Cash Flow	3.75M	17.02M	248.94K	4.79M	1.07M	13.25M

Cosol Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.6 is above the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.67, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 77.61 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
KYP	75 Outperform	AU$77.78M	95.00	3.26%	―	5.37%	-45.95%
ATA	74 Outperform	AU$299.91M	22.01	6.32%	―	32.40%	-2.97%
COS	71 Outperform	AU$110.10M	12.03	12.90%	3.31%	23.66%	-7.71%
Sector *	69 Neutral	¥228.24B	14.40	7.64%	2.72%	9.13%	8.48%
CCG	60 Neutral	AU$28.63M	60.00	1.16%	4.63%	48.72%	―
DUG	58 Neutral	AU$199.97M	33.61	-5.30%	―	15.87%	-160.30%
CCR	57 Neutral	AU$101.92M	―	-7.65%	―	20.24%	27.33%

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.

COSOL Limited Releases Shares from Voluntary Escrow

COSOL Limited announced the release of 2,538,844 fully paid ordinary shares from voluntary escrow, originally issued as part of the acquisition of Core Asset Co Pty Ltd. The release will not affect COSOL’s issued capital as these shares are already quoted on the ASX. This move reflects COSOL’s strategic growth and acquisition activities since its ASX listing in 2020, contributing to its profitable growth and strong operating cash flows.