NasdaqGS:COWN

Stock Analysis Report

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Executive Summary

Cowen Inc., together with its subsidiaries, provides investment banking, research, sales and trading, prime brokerage, global clearing, commission management, and investment management services in the United States and internationally. More Details


Snowflake Analysis

Proven track record and fair value.


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 +/- 9% a week.

Volatility Over Time: COWN's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

COWN

1.0%

US Capital Markets

-0.7%

US Market


1 Year Return

131.6%

COWN

38.8%

US Capital Markets

36.6%

US Market

Return vs Industry: COWN exceeded the US Capital Markets industry which returned 36.1% over the past year.

Return vs Market: COWN exceeded the US Market which returned 41.9% over the past year.


Shareholder returns

COWNIndustryMarket
7 Day-4.3%1.0%-0.7%
30 Day39.7%10.8%4.3%
90 Day42.7%17.0%8.1%
1 Year134.1%131.6%42.2%38.8%39.6%36.6%
3 Year143.9%140.6%40.1%29.7%53.5%43.7%
5 Year147.3%144.0%152.2%121.0%123.7%98.8%

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

Valuation

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

4.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COWN ($35.13) is trading above our estimate of fair value ($6.78)

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 (4.7x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: COWN is good value based on its PE Ratio (4.7x) compared to the US market (21.7x).


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 (1.2x) compared to the US Capital Markets industry average (14.4x).


Next Steps

Future Growth

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

-29.3%

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 (-29.3% per year).

Earnings vs Market: COWN's earnings are forecast to decline over the next 3 years (-29.3% per year).

High Growth Earnings: COWN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COWN's revenue (0.7% per year) is forecast to grow slower than the US market (10.7% per year).

High Growth Revenue: COWN's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COWN's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Cowen performed over the past 5 years?

51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COWN has a large one-off gain of $178.6M impacting its December 31 2020 financial results.

Growing Profit Margin: COWN's current net profit margins (14.6%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: COWN's earnings have grown significantly by 51.5% per year over the past 5 years.

Accelerating Growth: COWN's earnings growth over the past year (1089.2%) exceeds its 5-year average (51.5% per year).

Earnings vs Industry: COWN earnings growth over the past year (1089.2%) exceeded the Capital Markets industry 10.5%.


Return on Equity

High ROE: COWN's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Cowen's financial position?


Financial Position Analysis

Short Term Liabilities: COWN's short term assets ($5.1B) exceed its short term liabilities ($4.0B).

Long Term Liabilities: COWN's short term assets ($5.1B) exceed its long term liabilities ($615.8M).


Debt to Equity History and Analysis

Debt Level: COWN's debt to equity ratio (160.7%) is considered high.

Reducing Debt: COWN's debt to equity ratio has increased from 21.4% to 160.7% over the past 5 years.

Debt Coverage: COWN's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: Insufficient data to determine if COWN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Cowen current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COWN's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: COWN's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (3.2%), COWN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COWN's dividends in 3 years are forecast to be thoroughly covered by earnings (7.7% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jeff Solomon (54 yo)

3.25yrs

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 ($USD7.48M) is above average for companies of similar size in the US market ($USD2.22M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Solomon
Chairman of the Board & CEO3.25yrsUS$7.48m1.84%
$ 17.9m
Stephen Lasota
MD & CFO11.33yrsUS$3.12m0.66%
$ 6.4m
John Holmes
MD & COO6.08yrsUS$3.24m0.53%
$ 5.1m
Owen Littman
MD, General Counsel & Secretary10.67yrsUS$3.15m0.47%
$ 4.6m
Elizabeth Rosman
MD & Head of Investment Management2.58yrsno datano data
Zachary Fisher
Managing Director of Technology4.58yrsno datano data
Ann Neidenbach
MD & Chief Information Officer3.67yrsno datano data
James Farley
MD & Head of Investor Relations2yrsno datano data
Kelly Weigel
MD & Head of Marketing3.67yrsno datano data
Rhys Brooks
Head of Sales Tradingno datano datano data
Jane Gerhard
MD & Head of Human Resourcesno datano datano data
Thomas Strauss
Vice Chair8.25yrsUS$1.40mno data

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: COWN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Solomon
Chairman of the Board & CEO3.25yrsUS$7.48m1.84%
$ 17.9m
Steven Kotler
Independent Director10.75yrsUS$210.00k0.0093%
$ 90.5k
Katherine Dietze
Independent Director9.75yrsUS$230.00k0.045%
$ 434.8k
Douglas Rediker
Independent Director5.92yrsUS$200.00kno data
Fred Fraenkel
Vice Chairmanno datano datano data
Lawrence Leibowitz
Independent Director2.75yrsUS$200.00k0.030%
$ 289.7k
Gregg Gonsalves
Independent Director0.92yrno datano data
Brett Barth
Independent Director2.75yrsUS$220.00k0.32%
$ 3.1m
Margaret Poster
Independent Director1.92yrsUS$231.25k0.023%
$ 225.8k

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: COWN's board of directors are not considered experienced ( 2.8 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: 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 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$970.428m
  • Shares outstanding: 26.80m
  • Website: https://www.cowen.com

Number of Employees


Location

  • Cowen Inc.
  • 599 Lexington Avenue
  • 20th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COWNNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2009
CWGR.POTCUS (Other "Grey Market" OTC)CUM PERP PFD CONUSUSDMay 2016

Biography

Cowen Inc., together with its subsidiaries, provides investment banking, research, sales and trading, prime brokerage, global clearing, commission management, and investment management services in the Unit...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 23:19
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.