NYSE:CZZ

Stock Analysis Report

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Executive Summary

Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar, and ethanol businesses in Brazil, Europe, Latin America, North America, Asia, and internationally. More Details


Snowflake Analysis

High growth potential established dividend payer.


Similar Companies

Share Price & News

How has Cosan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CZZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CZZ's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

CZZ

4.1%

US Oil and Gas

-0.9%

US Market


1 Year Return

-15.4%

CZZ

-26.6%

US Oil and Gas

19.6%

US Market

Return vs Industry: CZZ exceeded the US Oil and Gas industry which returned -24.6% over the past year.

Return vs Market: CZZ underperformed the US Market which returned 21% over the past year.


Shareholder returns

CZZIndustryMarket
7 Day2.0%4.1%-0.9%
30 Day0.8%8.6%3.0%
90 Day29.3%38.8%11.5%
1 Year-9.9%-15.4%-21.7%-26.6%22.3%19.6%
3 Year93.7%80.2%-32.2%-41.4%45.3%35.7%
5 Year601.9%536.7%-1.0%-20.4%124.8%99.9%

Long-Term Price Volatility Vs. Market

How volatile is Cosan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

17.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CZZ ($19.1) is trading above our estimate of fair value ($8.97)

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


Price To Earnings Ratio

PE vs Industry: CZZ is poor value based on its PE Ratio (17x) compared to the US Oil and Gas industry average (10.4x).

PE vs Market: CZZ is good value based on its PE Ratio (17x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CZZ is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: CZZ is overvalued based on its PB Ratio (4.5x) compared to the US Oil and Gas industry average (1.2x).


Next Steps

Future Growth

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

103.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CZZ's forecast earnings growth (103.7% per year) is above the savings rate (2%).

Earnings vs Market: CZZ's earnings (103.7% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CZZ's revenue (20.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: CZZ's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CZZ's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Cosan performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CZZ has high quality earnings.

Growing Profit Margin: CZZ's current net profit margins (6.5%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: CZZ has become profitable over the past 5 years, growing earnings by 40.6% per year.

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

Earnings vs Industry: CZZ had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (-32.7%).


Return on Equity

High ROE: CZZ's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Cosan's financial position?


Financial Position Analysis

Short Term Liabilities: CZZ's short term assets (R$23.3B) exceed its short term liabilities (R$10.4B).

Long Term Liabilities: CZZ's short term assets (R$23.3B) do not cover its long term liabilities (R$52.8B).


Debt to Equity History and Analysis

Debt Level: CZZ's debt to equity ratio (220.5%) is considered high.

Reducing Debt: CZZ's debt to equity ratio has increased from 123.6% to 220.5% over the past 5 years.

Debt Coverage: CZZ's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: CZZ's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

5.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CZZ's dividend (5.15%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: CZZ's dividend (5.15%) is in the top 25% of dividend payers in the US market (3.84%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.6%), CZZ's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CZZ's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Luis Henrique de Beauclair Guimaraes (54 yo)

0.75

Tenure

Mr. Luis Henrique Cals De Beauclair Guimaraes has been Chief Executive Officer at Cosan Limited, Cosan S.A. and Cosan Logística S.A. since April 1, 2020. He serves as Director at Cosan Logística S.A. He se...


Leadership Team

NamePositionTenureCompensationOwnership
Luis Henrique de Beauclair Guimaraes
Chief Executive Officer0.75yrno datano data
Marcelo Martins
CFO, Investors Relations Officer & Vice Chairman of the Boardno datano datano data
Paula Kovarsky
Head of IRno datano datano data
Maria de Carvalho Drummond
Legal VP & General Counsel0.75yrno datano data
Burkhard Cordes
Risk Management Officer & Director12.17yrsno datano data
Nelson Roseira Neto
Chief Executive Officer of Companhia de Gás de São Paulo – Comgásno datano datano data
Filipe Affonso Ferreira
CEO of Mooveno datano datano data

0.8yrs

Average Tenure

50yo

Average Age

Experienced Management: CZZ's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marcelo Martins
CFO, Investors Relations Officer & Vice Chairman of the Boardno datano datano data
Burkhard Cordes
Risk Management Officer & Director12.17yrsno datano data
Richard Aldrich
Independent Director5yrsno datano data
Vasco Augusto da Fonseca Dias
Director5yrsno datano data
Dan Ioschpe
Independent Director6yrsno datano data
Rubens Ometto de Mello
Chairman of the Boardno datano datano data
Pedro Mizutani
Director14yrsno datano data
José Scheinkman
Independent Director14yrsno datano data
Nelson Luiz Silva
Independent Director1.5yrsno datano data
Daniela Pineli
Member of Fiscal Councilno datano datano data
Nadir Barsanulfo
Member of Fiscal Councilno datano datano data
Celso Geraldin
Member of Fiscal Councilno datano datano data

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: CZZ's board of directors are considered experienced (6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cosan Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cosan Limited
  • Ticker: CZZ
  • Exchange: NYSE
  • Founded: 1936
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$4.304b
  • Shares outstanding: 225.35m
  • Website: https://www.cosan.com.br

Location

  • Cosan Limited
  • Av. Brigadeiro Faria Lima, 4100
  • 16th Floor
  • São Paulo
  • São Paulo
  • 04538-132
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CZZNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 2007
C3Q1DB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 2007

Biography

Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar, and ethanol businesses in Brazil, Europe, Latin America, North America, Asia, and i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:57
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.