Cosan Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>CZZ</div>
CZZ -- USA Stock  

USD 15.52  0.15  0.98%

Cosan Profit Margin is fairly stable at the moment as compared to the past year. Cosan reported Profit Margin of 0.06 in 2019. Payout Ratio is likely to rise to 0.07 in 2020, whereas Average Assets are likely to drop slightly above 58 B in 2020. If you have been following Cosan you may be considering acquiring. Let's check if strong basic indicators will continue to push the price to rise for Cosan's investors. Will investors continue to hold, or should we expect a sell-off?
Published over a month ago
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Does Cosan (NYSE:CZZ) have strong basic indicators based on the current rise?
Cosan is UNDERVALUED at 19.70 per share with modest projections ahead. Cosan appears to be not too volatile, given 1 month investment horizon. Cosan Limited secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had 0.17% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Cosan Limited technical indicators you can presently evaluate if the expected return of 0.66% is justified by implied risk. Please makes use of Cosan Limited Risk Adjusted Performance of 0.3304, mean deviation of 3.17, and Downside Deviation of 2.88 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Cosan income statement, its balance sheet, and the statement of cash flows. Potential Cosan investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Cosan investors may use each financial statement separately, they are all related. The changes in Cosan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cosan's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Cosan fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Cosan performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Cosan shares is the value that is considered the true value of the share. If the intrinsic value Cosan is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Cosan. Please read more on our fundamental analysis page.

What is Cosan Asset Breakdown?

Cosan Limited reports assets on its Balance Sheet. It represents the amount of Cosan resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Cosan volatility, please check the breakdown of all its fundamentals

Are Cosan Earnings Expected to grow?

The future earnings power of Cosan involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Cosan factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Cosan stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Cosan expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Cosan earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cosan dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cosan one year expected dividend income is about $0.04 per share.
Cosan Dividend Yield is fairly stable at the moment as compared to the past year. Cosan reported Dividend Yield of 0.0081 in 2019. Dividends per Basic Common Share is likely to rise to 0.08 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (218.3 M) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-202.3 M-218.3 M
Dividend Yield 0.0081  0.008313 
Dividends per Basic Common Share 0.07  0.08 
Investing in stocks that pay dividends, such as stock of Cosan Limited, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Cosan must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cosan. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Cosan Gross Profit

Cosan Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cosan previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cosan Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Breaking it down a bit more

Institutional investors typically avoid acquiring a high percentage of Cosan stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Cosan is distributed among investors.

Ownership Allocation

Cosan Limited retains a total of 125.48 Million outstanding shares. Over half of Cosan Limited outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Cosan. Please watch out for any change in the institutional holdings of Cosan Limited as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
43.61%
Institutions
56.39%
Retail Investors43.61
Insiders0.0
Institutions56.39

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cosan has an asset utilization ratio of 8.09 percent. This suggests that the company is making $0.0809 for each dollar of assets. An increasing asset utilization means that Cosan Limited is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
47 B
Goodwill
16.6 B
Current Assets13.16 Billion16.45
Assets Non Current47.01 Billion58.79
Goodwill16.58 Billion20.73
Tax Assets3.22 Billion4.02

Will Cosan current rise continue?

The market risk adjusted performance is down to 0.64 as of today. Cosan Limited currently demonstrates below-verage downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.6. However, we do advice investors to further question Cosan Limited expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Cosan

While some firms under the oil & gas refining & marketing industry are still a bit expensive, Cosan may offer a potential longer-term growth to investors. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of Cosan or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cosan.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cosan Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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