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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


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

COWNIndustryMarket
7 Day4.5%0.9%-1.6%
30 Day7.8%5.1%1.3%
90 Day54.7%13.4%3.5%
1 Year300.7%296.4%74.6%70.8%55.4%52.8%
3 Year165.7%162.2%58.0%46.8%63.5%53.2%
5 Year215.2%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

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

TodayMay 06 2021Ex Dividend DateMay 28 2021Dividend Pay DateJun 15 202118 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 22:55
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
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.