Market Cap
US$1.1b
Last Updated
2021/05/05 22:55 UTC
Data Sources
Company Financials +
Executive Summary
Cowen Inc., together with its subsidiaries, provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management, and investment management services in the United States and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 45.9% per year for the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Cowen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: COWN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: COWN's weekly volatility (10%) has been stable over the past year.
Market Performance
7 Day Return
4.5%
COWN
0.9%
US Capital Markets
-1.6%
US Market
1 Year Return
296.4%
COWN
70.8%
US Capital Markets
52.8%
US Market
Return vs Industry: COWN exceeded the US Capital Markets industry which returned 68.1% over the past year.
Return vs Market: COWN exceeded the US Market which returned 52.4% over the past year.
Shareholder returns
| COWN | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 0.9% | -1.6% |
| 30 Day | 7.8% | 5.1% | 1.3% |
| 90 Day | 54.7% | 13.4% | 3.5% |
| 1 Year | 300.7%296.4% | 74.6%70.8% | 55.4%52.8% |
| 3 Year | 165.7%162.2% | 58.0%46.8% | 63.5%53.2% |
| 5 Year | 215.2%211.0% | 166.2%134.1% | 125.8%100.7% |
Long-Term Price Volatility Vs. Market
How volatile is Cowen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Need To Know: Analysts Are Much More Bullish On Cowen Inc. (NASDAQ:COWN)1 month ago | Simply Wall St
Does Cowen Inc. (NASDAQ:COWN) Have A Place In Your Dividend Portfolio?1 month ago | Simply Wall St
Are Insiders Selling Cowen Inc. (NASDAQ:COWN) Stock?Valuation
Is Cowen undervalued compared to its fair value and its price relative to the market?
3.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: COWN ($41.42) is trading above our estimate of fair value ($11.84)
Significantly Below Fair Value: COWN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: COWN is good value based on its PE Ratio (3.1x) compared to the US Capital Markets industry average (20x).
PE vs Market: COWN is good value based on its PE Ratio (3.1x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: COWN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: COWN is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (68.8x).
Future Growth
How is Cowen forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-45.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: COWN's earnings are forecast to decline over the next 3 years (-45.9% per year).
Earnings vs Market: COWN's earnings are forecast to decline over the next 3 years (-45.9% per year).
High Growth Earnings: COWN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: COWN's revenue is expected to decline over the next 3 years (-12.9% per year).
High Growth Revenue: COWN's revenue is forecast to decline over the next 3 years (-12.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if COWN's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Cowen performed over the past 5 years?
70.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: COWN has a large one-off gain of $161.0M impacting its March 31 2021 financial results.
Growing Profit Margin: COWN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: COWN's earnings have grown significantly by 70.9% per year over the past 5 years.
Accelerating Growth: COWN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: COWN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (27.2%).
Return on Equity
High ROE: Whilst COWN's Return on Equity (34.78%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Cowen's financial position?
Financial Position Analysis
Short Term Liabilities: COWN's short term assets ($9.1B) exceed its short term liabilities ($8.0B).
Long Term Liabilities: COWN's short term assets ($9.1B) exceed its long term liabilities ($704.9M).
Debt to Equity History and Analysis
Debt Level: COWN's debt to equity ratio (303.2%) is considered high.
Reducing Debt: COWN's debt to equity ratio has increased from 21.4% to 303.2% over the past 5 years.
Debt Coverage: COWN's debt is well covered by operating cash flow (25.5%).
Interest Coverage: Insufficient data to determine if COWN's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Cowen current dividend yield, its reliability and sustainability?
0.97%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: COWN's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: COWN's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether COWN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if COWN's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (2.2%), COWN's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Jeff Solomon (54 yo)
3.42yrs
Tenure
US$7,478,813
Compensation
Mr. Jeffrey Marc Solomon, also known as Jeff, has been Chairman of the Board at Cowen Inc. Mr. Solomon has been the Chief Executive Officer at Cowen Inc. since December 27, 2017 and was its Chairman of the...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD7.48M) is above average for companies of similar size in the US market ($USD2.33M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: COWN's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: COWN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: COWN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cowen Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cowen Inc.
- Ticker: COWN
- Exchange: NasdaqGS
- Founded: 1918
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$1.113b
- Shares outstanding: 26.87m
- Website: https://www.cowen.com
Number of Employees
Location
- Cowen Inc.
- 599 Lexington Avenue
- 20th Floor
- New York
- New York
- 10022
- United States
Listings
Biography
Cowen Inc., together with its subsidiaries, provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management, and investment managemen...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/05 22:55 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.