Cowen Inc.

NasdaqGS:COWN Stock Report

Market Cap: US$1.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Cowen Past Earnings Performance

Past criteria checks 2/6

Key information

49.53%

Earnings growth rate

49.54%

EPS growth rate

Capital Markets Industry Growth10.26%
Revenue growth rate19.20%
Return on equity4.98%
Net Margin5.45%
Last Earnings Update31 Dec 2022

Recent past performance updates

Recent updates

Analysis Article • Feb 26

Cowen's (NASDAQ:COWN) Dividend Will Be $0.12

The board of Cowen Inc. ( NASDAQ:COWN ) has announced that it will pay a dividend of $0.12 per share on the 15th of...
Seeking Alpha • Sep 12

Cowen: Review Of The Acquisition By The Toronto-Dominion Bank

Summary Cowen is a potentially attractive investment that we will continue to monitor as the acquisition process proceeds. The company is financially strong and has a great track record of outperforming industry peers. TD acquisition raises some questions, and we believe that the acquisition value is well below our valuation estimate of the company. Initiating Coverage We are initiating coverage on Cowen (COWN). Though Cowen's current stock price is near The Toronto-Dominion Bank's (TD)(TD:CA) acquisition price, we believe that given the company's strong fundamentals and undervaluation relative to peers, Cowen could be of interest to investors in the event that TD acquisition is called off or the price were to fall well below the current acquisition price of $39. We also remain skeptical on the acquisition by TD, and we will continue to monitor this stock to see if there are any meaningful updates regarding the acquisition that can determine our view on the stock. Company Overview Cowen Inc. is an American multinational independent investment bank and financial services company that was founded in 1918. This company has two business sections: a broker-dealer and an investment management division. Year-to-date, the stock price has seen an increase of 6.76%, outperforming the S&P 500 index which has fallen -14.39% in the same period of time. Currently, Cowen’s market capitalization is $1.07 billion and dividend yield is 1.25%. COWN Year to Date Price Returns (Daily) data by YCharts TD Acquisition TD in early August announced a $1.3 billion acquisition of Cowen (~$39 per share) that is expected to close in the first quarter of 2023. Though the acquisition is part of a string of acquisitions by TD to bolster its franchise especially in the United States, we have mixed views about the move. First and foremost, TD’s $1.3 billion acquisition is seen as a credit negative decision by credit agencies, with Moody declaring the acquisition a “negative for its credit quality”. Furthermore, it remains to be seen how easy the integration of the acquisition will be, and TD estimates that integration costs will amount to $450 million over three years. Given the economic slowdown and high inflation, though Cowen is a solid business with strong financial performance, we feel uneasy about TD’s overall execution and success of the acquisition. The current market price of Cowen is near the acquisition price, so we do not believe that there are more to be gained by Cowen shareholders at the current price point. Until the deal fully closes, we will remain vigilant on Cowen as if the company were to be assessed as a standalone business, there remains some value proposition at current levels. Review of Financials and Shareholder Policies In the past quarter, Cowen reported $302.4 million of Q2 2022 Revenue, and also reported a $12.4 million of net income which translates to $0.41 per share. Cowen's recent financial performance has been impressive, as Cowen has had a 21.7% of revenue CAGR since 2017 which is far more than the similar competitors’ revenue CAGR of 12.7% when using the 1Q22 LTM numbers (2Q22 LTM is unavailable). Furthermore, this company has a strong balance sheet, reporting $8.8 billion in assets and $926.8 million in cash as of June 30, 2022. The strong balance sheet is another reason why we think the company is financially strong. Cowen also has decent shareholder friendly policies. The company has a quarterly dividend of $0.95 per share which translates to 1.25% current dividend yield. In addition, Cowen has conducted roughly $159.8 million in share buyback in 2021, and has authorized $50 million so far this year. These indicate management's confidence in the business prospects and such policies should provide support to shareholder value. Cowen Earnings Presentation Acquisition Valuation We believe that Cowen even at the current market price after the acquisition announcement is undervalued compared to peer valuation. Cowen is a financially strong company that should be trading comparable to its peers. However, the current market multiples for Cowen are quite low and we believe that the company is fundamentally undervalued even after acquisition. Based on the strong financial performance and robust fundamentals, the company should at the very least be trading in the same P/E multiple range as its self-identified M&A peer group. Based on Q2 2022 earnings presentation, the median FY’22E P/E multiple of its M&A peer group is 11.2x. Given that the current FY'22E P/E ratio of Cowen is 7.3x based on the current market capitalization of $1.06 billion, there is at least a ~53% undervaluation even after the acquisition. Assuming all else equal, even in the event of the successful completion of the acquisition, we view this deal to be highly accretive for TD Bank. Earnings Presentation Risk
Seeking Alpha • Aug 03

Cowen declares $0.12 dividend

Cowen (NASDAQ:COWN) declares $0.12/share quarterly dividend, in line with previous. Forward yield 1.25% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See COWN Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jul 01

Cowen jumps on report Toronto-Dominion bank said to weigh potential purchase

Cowen Inc. (NASDAQ:COWN) soared 15% in after hours trading on a report that Toronto-Dominion Bank (NYSE:TD) is considering making an offer for the brokerage firm. The Toronto-based bank is working with advisors to analyze a potential deal for the broker, according to traders, who cited a Bloomberg report. No final decision has been made. Cowen has a market cap of just over $700 million. Developing story ...
Seeking Alpha • Jun 10

Cowen: A Deeply Discounted Opportunity

Cowen looks set to meet and likely exceed its latest mid-term revenue target. In addition to the core investment banking and brokerage businesses, the nascent digital asset business provides investors a free call option. At current levels, Cowen’s ex-investment management business is on offer at an implied negative valuation.
Analysis Article • Apr 08

Analysts Just Shaved Their Cowen Inc. (NASDAQ:COWN) Forecasts Dramatically

Today is shaping up negative for Cowen Inc. ( NASDAQ:COWN ) shareholders, with the analysts delivering a substantial...
Analysis Article • Apr 06

With EPS Growth And More, Cowen (NASDAQ:COWN) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Seeking Alpha • Apr 01

Cowen Inc.: Appears Too Cheap

After two years during which it earned $21.38 a share (non-GAAP), boutique investment bank Cowen Inc.’s (COWN) stock is trading around $27 a share. After being the beneficiary of market conditions - namely significant healthcare and SPAC activity during the pandemic - the firm’s stock is trading at a forward PE multiple of 4. With beefed-up advisory and research efforts transforming Cowen into a more diversified firm, the recent insider buying warranted a closer examination. A full investment analysis follows in the paragraphs below.
Analysis Article • Feb 19

Cowen's (NASDAQ:COWN) Shareholders Will Receive A Bigger Dividend Than Last Year

Cowen Inc. ( NASDAQ:COWN ) will increase its dividend on the 15th of March to US$0.12. Even though the dividend went...
Seeking Alpha • Dec 05

Cowen: Undervaluation And Strong Prospects Are Too Tempting To Ignore

The market seems to significantly underestimate Cowen's financial growth prospects in the medium term, which should lead to a) revisions in analysts' estimates or b) strong earnings surprises. Portico acquisition will add and expand COWN's existing pipeline, which will benefit the company in terms of diversifying its operations. Cowen is in fact the most undervalued IB boutique among all the companies in the sample analyzed. From my point of view, the risk-reward ratio for long-term investing is on the side of the bulls. Therefore, I recommend you to pay your attention to this company.
Analysis Article • Nov 05

Should You Be Adding Cowen (NASDAQ:COWN) To Your Watchlist Today?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Seeking Alpha • Aug 23

Cowen: Attractively Priced With Significant Growth Opportunities

Cowen’s revenue will grow significantly over the next five years driven by strong growth drivers, competitive edge and new opportunities. The company is focusing on delivering scalable, differentiated and actively managed investment products. The company’s shares can be bought around the current price as long-term investment. The shares will rise significantly in the next five years.
Analysis Article • Jul 31

Cowen (NASDAQ:COWN) Is Increasing Its Dividend To US$0.10

The board of Cowen Inc. ( NASDAQ:COWN ) has announced that it will be increasing its dividend on the 15th of September...
Seeking Alpha • Jul 19

Cowen: An Investment Bank Worthy Of Your Investment?

Cowen is achieving fantastic revenue and profit growth and is focused on optimizing its capital for the benefit of shareholders. The company is investing in its platform and increasing publishing analysts to provide clients with the best research and take market share from competitors. Cowen's CAGR is leaving its peers in the dust.
Analysis Article • May 01

Need To Know: Analysts Are Much More Bullish On Cowen Inc. (NASDAQ:COWN)

Cowen Inc. ( NASDAQ:COWN ) shareholders will have a reason to smile today, with the analysts making substantial...
Analysis Article • Apr 06

Does Cowen Inc. (NASDAQ:COWN) Have A Place In Your Dividend Portfolio?

Could Cowen Inc. ( NASDAQ:COWN ) be an attractive dividend share to own for the long haul? Investors are often drawn to...
Analysis Article • Mar 11

Are Insiders Selling Cowen Inc. (NASDAQ:COWN) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
Analysis Article • Feb 13

Need To Know: Analysts Are Much More Bullish On Cowen Inc. (NASDAQ:COWN)

Cowen Inc. ( NASDAQ:COWN ) shareholders will have a reason to smile today, with the analysts making substantial...
Analysis Article • Feb 07

Introducing Cowen (NASDAQ:COWN), The Stock That Zoomed 138% In The Last Five Years

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if...

Revenue & Expenses Breakdown

How Cowen makes and spends money. Based on latest reported earnings, on an LTM basis.

Earnings and Revenue History

NasdaqGS:COWN Revenue, expenses and earnings (USD Millions)
DateRevenueEarningsG+A ExpensesR&D Expenses
31 Dec 221,279707710
30 Sep 221,3941229220
30 Jun 221,4281459180
31 Mar 221,5761769890
31 Dec 211,9012891,1900
30 Sep 211,9853161,2250
30 Jun 211,8992981,1670
31 Mar 212,1003671,2500
31 Dec 201,5662109840
30 Sep 201,2721238440
30 Jun 201,1831068140
31 Mar 20838-26450
31 Dec 19990186490
30 Sep 19869186280
30 Jun 19868296290
31 Mar 19825296160
31 Dec 18855366160
30 Sep 18803-456040
30 Jun 18772-565750
31 Mar 18710-545460
31 Dec 17585-684870
30 Sep 1751864510
30 Jun 17460-14410
31 Mar 17420-193870
31 Dec 16410-263750
30 Sep 1639263780
30 Jun 16390-13360
31 Mar 16393183540

Quality Earnings: COWN has high quality earnings.

Growing Profit Margin: COWN's current net profit margins (5.4%) are lower than last year (15.2%).

Free Cash Flow vs Earnings Analysis

Past Earnings Growth Analysis

Earnings Trend: COWN has become profitable over the past 5 years, growing earnings by 49.5% per year.

Accelerating Growth: COWN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COWN had negative earnings growth (-75.9%) over the past year, making it difficult to compare to the Capital Markets industry average (14.1%).

Return on Equity

High ROE: COWN's Return on Equity (5%) is considered low.

Return on Assets

Return on Capital Employed

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/03/02 21:07
End of Day Share Price 2023/02/28 00:00
Earnings2022/12/31
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cowen Inc. is covered by 8 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Guy MoszkowskiBofA Global Research
Devin RyanCitizens JMP Securities, LLC
James YaroGoldman Sachs