COWN

CowenNasdaqGS:COWN Stock Report

Market Cap

US$963.0m

7D

-4.5%

1Y

115.8%

Updated

22 Sep, 2021

Data

Company Financials +
COWN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends2/6

COWN Overview

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.

Cowen Competitors

Morgan Stanley

NYSE:MS

US$183.9b

Charles Schwab

NYSE:SCHW

US$132.9b

Goldman Sachs Group

NYSE:GS

US$124.1b

Raymond James Financial

NYSE:RJF

US$17.9b

Price History & Performance

Summary of all time highs, changes and price drops for Cowen
Historical stock prices
Current Share PriceUS$33.19
52 Week HighUS$14.91
52 Week LowUS$44.07
Beta1.45
1 Month Change-10.27%
3 Month Change-24.00%
1 Year Change115.80%
3 Year Change103.62%
5 Year Change128.58%
Change since IPO13.66%

Recent News & Updates

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.

Jul 31
Cowen (NASDAQ:COWN) Is Increasing Its Dividend To US$0.10

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...

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.

Shareholder Returns

COWNUS Capital MarketsUS Market
7D-4.5%-2.7%-1.7%
1Y115.8%65.2%36.2%

Return vs Industry: COWN exceeded the US Capital Markets industry which returned 59.9% over the past year.

Return vs Market: COWN exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is COWN's price volatile compared to industry and market?
COWN volatility
COWN Beta1.45
Industry Beta1.19
Market Beta1

Stable Share Price: COWN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: COWN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19181,364Jeff Solomonhttps://www.cowen.com

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. It operates in two segments, Operating Company (Op Co) and Asset Company (Asset Co). The company offers public and private capital raising, and strategic advisory services for public and private companies. It also trades common stocks, listed options, equity-linked securities, and other financial instruments on behalf of institutional investor clients.

Cowen Fundamentals Summary

How do Cowen's earnings and revenue compare to its market cap?
COWN fundamental statistics
Market CapUS$963.03m
Earnings (TTM)US$298.49m
Revenue (TTM)US$1.77b

3.2x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COWN income statement (TTM)
RevenueUS$1.77b
Cost of RevenueUS$260.56m
Gross ProfitUS$1.50b
ExpensesUS$1.21b
EarningsUS$298.49m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.97
Gross Margin85.24%
Net Profit Margin16.91%
Debt/Equity Ratio294.2%

How did COWN perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

3%

Payout Ratio

Valuation

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

3.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COWN ($33.19) is trading above our estimate of fair value ($13.77)

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 (3.2x) compared to the US Capital Markets industry average (14.3x).

PE vs Market: COWN is good value based on its PE Ratio (3.2x) compared to the US market (17.5x).


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 (1x) compared to the US Capital Markets industry average (61.3x).


Future Growth

How is Cowen forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-25.4%

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 (-25.4% per year).

Earnings vs Market: COWN's earnings are forecast to decline over the next 3 years (-25.4% 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 (-8.5% per year).

High Growth Revenue: COWN's revenue is forecast to decline over the next 3 years (-8.5% 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 (16.7%).


Past Performance

How has Cowen performed over the past 5 years?

75.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COWN has a large one-off gain of $161.2M impacting its June 30 2021 financial results.

Growing Profit Margin: COWN's current net profit margins (16.9%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: COWN has become profitable over the past 5 years, growing earnings by 75.6% per year.

Accelerating Growth: COWN's earnings growth over the past year (181.2%) exceeds its 5-year average (75.6% per year).

Earnings vs Industry: COWN earnings growth over the past year (181.2%) exceeded the Capital Markets industry 77.4%.


Return on Equity

High ROE: Whilst COWN's Return on Equity (27.17%) 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 ($9.3B) exceed its short term liabilities ($8.3B).

Long Term Liabilities: COWN's short term assets ($9.3B) exceed its long term liabilities ($572.6M).


Debt to Equity History and Analysis

Debt Level: COWN's debt to equity ratio (294.2%) is considered high.

Reducing Debt: COWN's debt to equity ratio has increased from 22.4% to 294.2% over the past 5 years.

Debt Coverage: COWN's debt is not well covered by operating cash flow (15.1%).

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?

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COWN's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: COWN's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, COWN has been paying a dividend for less than 10 years.

Growing Dividend: COWN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.3%), 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 (12.9% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Jeff Solomon (55 yo)

3.75yrs

Tenure

US$18,990,503

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 ($USD18.99M) is above average for companies of similar size in the US market ($USD2.39M).

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


Leadership Team

Experienced Management: COWN's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: COWN's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

Company Information

Cowen Inc.'s 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$963.032m
  • Shares outstanding: 29.02m
  • Website: https://www.cowen.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:35
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
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.