COG Financial Services (ASX:COG) - Share price, News & Analysis

COG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	3/6
Financial Health	3/6
Dividends	2/6

COG Stock Overview

COG Financial Services Limited engages in equipment finance broking and aggregation, and lending activities for business assets in Australia.

Rewards

Earnings are forecast to grow 22.89% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Dividend of 5.76% is not well covered by earnings

Shareholders have been diluted in the past year

COG Financial Services Peers

Euroz Hartleys Group

ASX:EZL

AU$308.5m

Bell Financial Group

ASX:BFG

AU$399.3m

Sequoia Financial Group

ASX:SEQ

AU$87.4m

HUB24

ASX:HUB

AU$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for COG Financial Services
Historical stock prices
Current Share Price	AU$1.65
52 Week High	AU$1.84
52 Week Low	AU$1.15
Beta	0.62
1 Month Change	-4.07%
3 Month Change	14.58%
1 Year Change	37.50%
3 Year Change	85.39%
5 Year Change	37.50%
Change since IPO	-83.66%

Recent News & Updates

Nov 22

Shareholders Will Probably Not Have Any Issues With COG Financial Services Limited's (ASX:COG) CEO Compensation

Under the guidance of CEO Andrew Bennett, COG Financial Services Limited ( ASX:COG ) has performed reasonably well...

Shareholder Returns

	COG	AU Capital Markets	AU Market
7D	1.9%	-1.9%	-2.1%
1Y	37.5%	1.9%	0.5%

Return vs Industry: COG exceeded the Australian Capital Markets industry which returned 1.9% over the past year.

Return vs Market: COG exceeded the Australian Market which returned 0.5% over the past year.

Price Volatility

Is COG's price volatile compared to industry and market?
COG volatility
COG Average Weekly Movement	5.0%
Capital Markets Industry Average Movement	5.7%
Market Average Movement	9.4%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: COG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: COG's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	n/a	Andrew Bennett	https://www.coglimited.com.au

COG Financial Services Limited engages in equipment finance broking and aggregation, and lending activities for business assets in Australia. It also offers IT managed 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 Fundamentals Summary

How do COG Financial Services's earnings and revenue compare to its market cap?
COG fundamental statistics
Market Cap	AU$310.05m
Earnings (TTM)	AU$12.85m
Revenue (TTM)	AU$296.62m

24.1x

P/E Ratio

1.0x

P/S Ratio

Is COG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
COG income statement (TTM)
Revenue	AU$296.62m
Cost of Revenue	AU$114.08m
Gross Profit	AU$182.54m
Other Expenses	AU$169.69m
Earnings	AU$12.85m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.068
Gross Margin	61.54%
Net Profit Margin	4.33%
Debt/Equity Ratio	116.5%

How did COG perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

126%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is COG Financial Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: COG's forecast earnings growth (22.9% per year) is above the savings rate (1.8%).

Earnings vs Market: COG's earnings (22.9% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: COG's revenue (6.6% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: COG's revenue (6.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: COG's Return on Equity is forecast to be low in 3 years time (15.9%).

Past Performance

How has COG Financial Services performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-52.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COG has high quality earnings.

Growing Profit Margin: COG became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: COG has become profitable over the past 5 years, growing earnings by -52.6% per year.

Accelerating Growth: COG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: COG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (44.6%).

Return on Equity

High ROE: COG's Return on Equity (11.4%) is considered low.

Financial Health

How is COG Financial Services's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: COG's short term assets (A$200.8M) do not cover its short term liabilities (A$230.8M).

Long Term Liabilities: COG's short term assets (A$200.8M) exceed its long term liabilities (A$53.2M).

Debt to Equity History and Analysis

Debt Level: COG's net debt to equity ratio (61.4%) is considered high.

Reducing Debt: COG's debt to equity ratio has increased from 16.1% to 116.5% over the past 5 years.

Debt Coverage: COG's debt is well covered by operating cash flow (56%).

Interest Coverage: COG's interest payments on its debt are well covered by EBIT (5.4x coverage).

Balance Sheet

Dividend

What is COG Financial Services's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: COG's dividend (5.76%) is higher than the bottom 25% of dividend payers in the Australian market (2.57%).

High Dividend: COG's dividend (5.76%) is low compared to the top 25% of dividend payers in the Australian market (6.13%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, COG has been paying a dividend for less than 10 years.

Growing Dividend: COG's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (125.5%), COG's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.9%), COG's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Andrew Bennett

3.25yrs

Tenure

AU$904,867

Compensation

Mr. Andrew Bennett has been Group Chief Executive Director of Consolidated Operations Group Ltd since February 2019 and served as its Executive Director since June 4, 2018. Mr. Bennett has experience in th...

CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD626.08K) is about average for companies of similar size in the Australian market ($USD559.51K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: COG's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: COG's board of directors are considered experienced (3.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30