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CNS

Cohen & Steers NYSE:CNS Stock Report

Last Price

US$76.50

Market Cap

US$3.7b

7D

-1.9%

1Y

-10.8%

Updated

17 Aug, 2022

Data

Company Financials +
CNS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

CNS Stock Overview

Cohen & Steers, Inc. is a publicly owned asset management holding company.

Cohen & Steers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cohen & Steers
Historical stock prices
Current Share PriceUS$76.50
52 Week HighUS$101.22
52 Week LowUS$62.01
Beta1.35
1 Month Change13.62%
3 Month Change6.34%
1 Year Change-10.81%
3 Year Change41.04%
5 Year Change98.34%
Change since IPO488.46%

Recent News & Updates

Aug 08

Cohen & Steers: Positives Priced In

Cohen & Steers has managed to deliver above-expectations results and stable flows in this challenging market environment, as real assets gained favor with investors. The increased investor interest in private real estate is both a risk and an opportunity for CNS, as it has had a greater focus on listed real estate strategies historically. CNS is a Hold, as the market has priced in its exposure to real assets, and it is still in the early stages of growing its private real estate business. Elevator Pitch My investment rating for Cohen & Steers, Inc. (CNS) stock is a Hold. I previously touched on CNS' valuations and dividends in my earlier March 25, 2021 update for the company. In the current article, I turn my attention to how Cohen & Steers has been performing in this tough environment for financial markets in general. CNS has performed above expectations with its earnings beat for Q2 2022 and stable flows in 1H 2022. But such positives are priced into Cohen & Steers' valuations; CNS trades at 20 times forward P/E which is in line with its historical averages. I continue to assign a Hold rating to Cohen & Steers, as I view its current valuations as fair. I will consider upgrading CNS to a Buy in the future, if the company makes greater-than-expected headway with its new private real estate business. CNS Achieved Stable Flows And Above-Expectations Financial Results Cohen & Steers' AUM declined significantly since the start of 2022, but its flows have been relatively more stable over the same period. According to its Q2 2022 financial results presentation slides, CNS' AUM decreased by -4% from $106.6 billion as of the end of last year to $102.1 billion as of end-Q1 2022, before falling by another -14% to $87.9 billion as of June 30, 2022. In aggregate, Cohen & Steers' AUM has contracted by -18% between the beginning of this year and the end of June. But it is noteworthy that the -$18.7 billion drop in Cohen & Steers' AUM in the first six months of the year was mainly attributable to a -$17.1 billion decrease in the market value of its assets in the first half of 2022. In contrast, CNS' flows are rather stable, with Q1 2022 net inflows of +$756 million being partially offset by Q2 2022 net outflows of -$717 million. Cohen & Steers also delivered a good set of results for the second quarter of 2022, which was better than what the market was anticipating. Revenue for CNS increased by +2% YoY from $144.4 million in Q2 2021 to $147.7 million in Q2 2022. Cohen & Steers' second-quarter top line turned to be +7% higher than the sell-side's consensus revenue projection of $138 million. The company's non-GAAP adjusted earnings per share rose from $0.94 in the second quarter of last year to $0.96 in the most recent quarter. CNS' adjusted EPS for Q2 2022 exceeded the market's consensus estimate by +3%. Focus On Real Assets Pays Off At the company's Q2 2022 earnings call, Cohen & Steers highlighted that its clients are seeking "diversified real asset exposure" to increase "inflation protection." This has clearly benefited CNS, as evidenced by its stable flows in 1H 2022 and better-than-expected quarterly financial results. Asset manager Nuveen defines real assets to include real estate, REITs, infrastructure, and commodities, and noted that real assets help to "hedge inflation" on its website. Definition Of Real Assets Nuveen CNS has substantial exposure to real assets, as seen with its strategy mix as of end-Q2 2022 as highlighted below. Strategies relating to real estate and infrastructure accounted for close to three-quarters of Cohen & Steers' assets under management as of the end of June 2022. Cohen & Steers' Strategy Mix As Of June 30, 2022 CNS' Q2 2022 Earnings Presentation In summary, Cohen & Steers' positioning as a niche player with a focus on real assets has paid off in the current market environment, where demand for exposure to real assets to counter inflation has grown substantially. All Eyes On Private Real Estate Last year, Cohen & Steers announced "the formation of the Cohen & Steers Private Real Estate Group, a team purpose-built for private real estate investing" as per a press release issued on April 19, 2021. In March 2022, CNS disclosed that Anthony Corriggio has joined the company's private real estate business as "Senior Vice President and Portfolio Manager." Cohen & Steers was likely referring to this new hire, when it mentioned at its Q2 2022 investor briefing that "we'll need to have specialists in private real estate." Cohen & Steers' Current Private Real Estate Team CNS Company Website It is worth spending time to understand why Cohen & Steers is venturing into the private real estate space again and ramping up hiring, having previously made an exit from this space in 2013.

Shareholder Returns

CNSUS Capital MarketsUS Market
7D-1.9%1.7%1.1%
1Y-10.8%-11.5%-9.0%

Return vs Industry: CNS exceeded the US Capital Markets industry which returned -12.2% over the past year.

Return vs Market: CNS underperformed the US Market which returned -8.9% over the past year.

Price Volatility

Is CNS's price volatile compared to industry and market?
CNS volatility
CNS Average Weekly Movement4.2%
Capital Markets Industry Average Movement0.5%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: CNS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986354Joe Harveyhttps://www.cohenandsteers.com

Cohen & Steers, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to institutional investors, including pension funds, endowments, and foundations. It manages separate client-focused equity, fixed income, multi-asset, and commodity portfolios through its subsidiaries.

Cohen & Steers Fundamentals Summary

How do Cohen & Steers's earnings and revenue compare to its market cap?
CNS fundamental statistics
Market CapUS$3.73b
Earnings (TTM)US$209.94m
Revenue (TTM)US$615.44m

17.7x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNS income statement (TTM)
RevenueUS$615.44m
Cost of RevenueUS$297.76m
Gross ProfitUS$317.67m
Other ExpensesUS$107.73m
EarningsUS$209.94m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.31
Gross Margin51.62%
Net Profit Margin34.11%
Debt/Equity Ratio0%

How did CNS perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNS?

Other financial metrics that can be useful for relative valuation.

CNS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.1x
Enterprise Value/EBITDA14x
PEG Ratio10.1x

Price to Earnings Ratio vs Peers

How does CNS's PE Ratio compare to its peers?

CNS PE Ratio vs Peers
The above table shows the PE ratio for CNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.4x
HLNE Hamilton Lane
19x14.2%US$4.2b
FOCS Focus Financial Partners
40.6x33.1%US$3.4b
AB AllianceBernstein Holding
11.8x5.4%US$4.3b
APAM Artisan Partners Asset Management
10.2x-8.4%US$3.0b
CNS Cohen & Steers
17.7x1.8%US$3.7b

Price-To-Earnings vs Peers: CNS is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (20.4x).


Price to Earnings Ratio vs Industry

How does CNS's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: CNS is good value based on its Price-To-Earnings Ratio (17.7x) compared to the US Capital Markets industry average (26.6x)


Price to Earnings Ratio vs Fair Ratio

What is CNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: CNS is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


Share Price vs Fair Value

What is the Fair Price of CNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNS ($76.5) is trading above our estimate of fair value ($57.03)

Significantly Below Fair Value: CNS is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Cohen & Steers forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNS's forecast earnings growth (1.8% per year) is below the savings rate (1.9%).

Earnings vs Market: CNS's earnings (1.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNS's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: CNS's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CNS's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Cohen & Steers performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNS has a high level of non-cash earnings.

Growing Profit Margin: CNS's current net profit margins (34.1%) are higher than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: CNS's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: CNS's earnings growth over the past year (70.8%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: CNS earnings growth over the past year (70.8%) exceeded the Capital Markets industry 35.4%.


Return on Equity

High ROE: CNS's Return on Equity (40.9%) is considered outstanding.


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Financial Health

How is Cohen & Steers's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNS's short term assets ($291.5M) exceed its short term liabilities ($77.7M).

Long Term Liabilities: CNS's short term assets ($291.5M) exceed its long term liabilities ($24.3M).


Debt to Equity History and Analysis

Debt Level: CNS is debt free.

Reducing Debt: CNS has not had any debt for past 5 years.

Debt Coverage: CNS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CNS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Cohen & Steers's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CNS's dividend (4.51%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CNS's dividend (4.51%) is in the top 25% of dividend payers in the US market (3.95%)


Stability and Growth of Payments

Stable Dividend: CNS's dividend payments have been volatile in the past 10 years.

Growing Dividend: CNS's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.3%), CNS's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (166.8%), CNS's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Joe Harvey (58 yo)

19.58yrs

Tenure

US$5,349,136

Compensation

Mr. Joseph Martin Harvey, also known as Joe, has been Chief Executive Officer of Cohen & Steers, Inc. since March 1, 2022. He had been an Acting Chief Executive Officer of Cohen & Steers, Inc. since Februa...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD5.35M) is about average for companies of similar size in the US market ($USD6.57M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CNS's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: CNS's board of directors are seasoned and experienced ( 18 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNS 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

Cohen & Steers, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cohen & Steers, Inc.
  • Ticker: CNS
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$3.725b
  • Shares outstanding: 48.70m
  • Website: https://www.cohenandsteers.com

Number of Employees


Location

  • Cohen & Steers, Inc.
  • 280 Park Avenue
  • 10th Floor
  • New York
  • New York
  • 10017
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.