Investment Thesis
Cohen & Steers exhibits strong operating margins (34.4%) and revenue growth (+7.5% YoY), but faces a critical cash flow crisis with negative operating cash flow of -$51.4M and free cash flow of -$57.3M, indicating the company cannot convert reported profits into cash. Despite a fortified balance sheet with no long-term debt, the deteriorating net income (-2.7% YoY) combined with severe cash burn raises concerns about operational sustainability and earnings quality.
Strengths
- Exceptional operating margin of 34.4% demonstrates strong cost control
- Revenue growth of 7.5% YoY shows market demand
- Fortress balance sheet with zero long-term debt and D/E ratio of 0.0x provides financial flexibility
Risks
- Severe negative operating cash flow (-$51.4M) indicates inability to convert profits to cash—fundamentally unsustainable
- Net income declining 2.7% YoY despite 7.5% revenue growth signals deteriorating operational efficiency and margin compression
- Low returns on equity (7.5%) and assets (5.0%) suggest inefficient capital deployment and weak earning power
Key Metrics to Watch
- Operating cash flow trend and reconciliation with net income
- Working capital changes and receivables growth
- Net margin progression and cost structure management
Financial Metrics
Revenue
145.6M
Net Income
42.4M
EPS (Diluted)
$0.82
Free Cash Flow
-57.3M
Total Assets
854.7M
Cash
53.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
34.4%
Net Margin
29.1%
ROE
7.5%
ROA
5.0%
FCF Margin
-39.4%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
22.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T10:51:50.613112 |
Data as of: 2026-03-31 |
Powered by Claude AI