DB:C3Q1

Stock Analysis Report

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Executive Summary

Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar, and ethanol businesses in Brazil and internationally.


Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Cosan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C3Q1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

C3Q1

13.0%

DE Oil and Gas

3.0%

DE Market


1 Year Return

3.7%

C3Q1

26.0%

DE Oil and Gas

0.2%

DE Market

Return vs Industry: C3Q1 underperformed the German Oil and Gas industry which returned 26% over the past year.

Return vs Market: C3Q1 exceeded the German Market which returned 0.2% over the past year.


Shareholder returns

C3Q1IndustryMarket
7 Day3.6%13.0%3.0%
30 Day-7.3%14.6%5.4%
90 Day-28.3%-3.5%-1.2%
1 Year3.7%3.7%29.7%26.0%1.8%0.2%
3 Year88.5%86.8%-2.8%-12.1%-7.2%-14.3%
5 Year123.5%115.8%157.5%121.0%4.3%-9.1%

Price Volatility Vs. Market

How volatile is Cosan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cosan undervalued compared to its fair value and its price relative to the market?

12.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: C3Q1 (€11.4) is trading above our estimate of fair value (€0.36)

Significantly Below Fair Value: C3Q1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C3Q1 is poor value based on its PE Ratio (12.1x) compared to the Oil and Gas industry average (7.8x).

PE vs Market: C3Q1 is good value based on its PE Ratio (12.1x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: C3Q1 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: C3Q1 is overvalued based on its PB Ratio (2.9x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Cosan forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C3Q1's forecast earnings growth (6.9% per year) is above the savings rate (0.2%).

Earnings vs Market: C3Q1's earnings (6.9% per year) are forecast to grow slower than the German market (21.6% per year).

High Growth Earnings: C3Q1's earnings are forecast to grow, but not significantly.

Revenue vs Market: C3Q1's revenue (34% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: C3Q1's revenue (34% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C3Q1's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

How has Cosan performed over the past 5 years?

49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C3Q1 has high quality earnings.

Growing Profit Margin: C3Q1's current net profit margins (6.3%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: C3Q1 has become profitable over the past 5 years, growing earnings by 49.6% per year.

Accelerating Growth: C3Q1's earnings growth over the past year (30.1%) is below its 5-year average (49.6% per year).

Earnings vs Industry: C3Q1 earnings growth over the past year (30.1%) exceeded the Oil and Gas industry -5.2%.


Return on Equity

High ROE: C3Q1's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Cosan's financial position?


Financial Position Analysis

Short Term Liabilities: C3Q1's short term assets (R$16.0B) exceed its short term liabilities (R$8.9B).

Long Term Liabilities: C3Q1's short term assets (R$16.0B) do not cover its long term liabilities (R$40.6B).


Debt to Equity History and Analysis

Debt Level: C3Q1's debt to equity ratio (182.7%) is considered high.

Reducing Debt: C3Q1's debt to equity ratio has increased from 76.3% to 182.7% over the past 5 years.

Debt Coverage: C3Q1's debt is well covered by operating cash flow (21.2%).

Interest Coverage: C3Q1's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Cosan's current dividend yield, its reliability and sustainability?

0.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: C3Q1's dividend (0.41%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: C3Q1's dividend (0.41%) is low compared to the top 25% of dividend payers in the German market (3.93%).


Stability and Growth of Payments

Stable Dividend: C3Q1 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: C3Q1 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of C3Q1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

11.3yrs

Average board tenure


CEO

Luis Henrique de Beauclair Guimaraes

no data

Tenure

Mr. Luis Henrique Cals De Beauclair Guimaraes has been Chief Executive Officer at Cosan Limited, Cosan S.A. and Cosan Logística S.A. since April 1, 2020. Mr. de Beauclair Guimaraes served as Chief Superint ...


Board Members

NamePositionTenureCompensationOwnership
Marcelo Martins
CFO, Investors Relations Officer & Director11.17yrsno datano data
Burkhard Cordes
Risk Management Officer & Director11.42yrsno datano data
Richard Aldrich
Independent Director4.33yrsno datano data
Vasco Augusto da Fonseca Dias
Director4.33yrsno datano data
Dan Ioschpe
Independent Director5.33yrsno datano data
Marcos Lutz
Vice Chairmanno datano datano data
Marcelo de Souza Scarcela Portela
Director13.33yrsno datano data
Rubens Ometto de Mello
Chairman of the Boardno datano datano data
Pedro Mizutani
Director13.33yrsno datano data
José Scheinkman
Independent Director13.33yrsno datano data

11.3yrs

Average Tenure

59yo

Average Age

Experienced Board: C3Q1's board of directors are seasoned and experienced ( 11.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cosan Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cosan Limited
  • Ticker: C3Q1
  • Exchange: DB
  • Founded: 1936
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$2.835b
  • Listing Market Cap: US$2.550b
  • Shares outstanding: 221.81m
  • Website: https://www.cosan.com.br

Number of Employees


Location

  • Cosan Limited
  • Av. Brigadeiro Faria Lima, 4100
  • 16th Floor
  • São Paulo
  • São Paulo
  • 04538-132
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CZZNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 2007
C3Q1DB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 2007

Biography

Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar, and ethanol businesses in Brazil and internationally. It operates through Raízen Energia, Raízen Combustíveis, Comgás, Cosan Logística, and Moove segments. The company’s Raízen Energia segment produces and markets products derived from sugar cane, including raw sugar, anhydrous, and hydrated ethanol, as well as activities related to energy cogeneration from sugarcane bagasse. Its Raízen Combustíveis segment distributes and markets fuels, primarily through a franchised network of service stations under the Shell brand in Brazil, as well as produces and sells automotive and industrial lubricants. The company’s Comgás segment distributes piped natural gas to customers in the industrial, residential, commercial, automotive, and thermo-generation and cogeneration sectors in São Paulo. Its Cosan Logística segment provides logistics services for transport, storage, and port loading of commodities, primarily for sugar products; and leases locomotives, wagons, and other railway equipment. Cosan Limited operates a network of approximately 6,524 service stations and 989 convenience stores, as well as 67 distribution terminals and 68 airports supplying jet fuel. The company was founded in 1936 and is based in São Paulo, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 22:01
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.