Cosan Stock Analysis (NYSE:CZZ)

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$7.11 $0.19 (2.75%) CZZ stock closing price Dec 02, 2016 (Closing)
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Cosan
Updated on : Dec 02, 2016
previous close
CZZ 7.1 (0%)
S&P 500 2192 (0%)
Closing Price On: Dec 02, 2016
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agriculture Products
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-19.4%
Compared to the industry
Long Term Growth
5 Year CAGR:
-19.8%
Operating Profit
Operating Margin:
22.5%
Sector Average:
6.3%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.73B
Debt/Equity Ratio:
 1.21
Compared to the industry
Cash Flow
Operating cash flow:
$463.1M
Net Income:
$40.2M
Dividend Yield
CZZ dividend yield:
2.53%
PROS      CONS
Operating Margins
Cash Flow
ROIC
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CZZ PS :
0.5
Industry PS :
1.3
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
5.9%
Return on Equity:
4.2%
Free Cash Flow Margin:
26.8%
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Cosan Analysis Video

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View Cosan stock analysis video. This is our CZZ analyst opinion covering the buy and sell arguments for CZZ stock.

Cosan Ltd (USA) Stock Rating (3.7/5)

Our Cosan stock opinion is based on fundamentals of the company. This Cosan stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy CZZ stock?

  • Cosan's average operating margin of 22.5% was exceptional.
  • The company has an operating cash flow which is 11.5 times the net income.
  • The price to earnings multiple of 9.4 is attractive when compared with the industry average PE ratio of 21.7.
  • CZZ stock is trading at a favorable price to sales multiple of 0.5 as against the Agriculture Products industry average multiple of 1.3.
  • Cosan generates a high return on invested capital of 5.9%.
  • Cosan has a healthy FCF (Free Cash Flow) margin of 26.8%.

Should you sell CZZ stock?

  • Long term revenue growth of -19.4% over the past 5 years has been disappointing.
  • Sales declined by -19.8% annually over the last 5 years.
  • Cosan has a debt/equity ratio of  1.21, which is worse than the average in the Basic Materials sector.

Comments on this video and Cosan stock

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