COSOL Limited

COS.AX

Information Technology Services · Technology

Price

A$0.20

+0.01 (+2.50%)

Market Cap

A$37.3M

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+38.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 139.1M (2021) → 192.9M (2025)

COSOL Limited is an Australian technology services company that helps businesses in asset-heavy industries manage their operations more efficiently. It sells software, consulting, and managed services built around enterprise asset management platforms — mainly IBM Maximo — to customers in sectors like mining, utilities, oil and gas, and government. The company is one of the larger specialist Maximo partners operating in Australia and the Asia-Pacific region.

COSOL earns revenue through a mix of project-based consulting work, software licensing, and recurring managed services contracts. It operates primarily in Australia, with some exposure to international markets through its services business. The recurring managed services segment provides some revenue stability, but the company is small, with thin margins and a relatively narrow focus on a single software ecosystem. Its key growth opportunity lies in expanding recurring revenue and winning larger enterprise contracts, while its main risk is customer concentration and dependence on IBM's Maximo platform remaining competitive in the market.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-23.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

55.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$6M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

COSOL Limited is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

16.7%

Thin — 16.7% gross margin

Operating Margin

10.7%

Modest — 10.7% operating margin

ROCE

6.2%

Weak — 6.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+46.4%

Fast-growing sales (46.4% YoY)

EPS YoY

-29.4%

Earnings shrinking (-29.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

136%

Turns 136% of profit into real cash

FCF Margin

7.4%

Modest free cash flow (7.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.34

Conservative — low debt load (0.34)

Interest Cover

6.58x

Adequate interest coverage (6.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

3.0x

Attractive valuation — P/E 3.0

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-7.9

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

11.72%

Healthy income — 11.72% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

+4.1%

Dividend growing modestly (4.1% YoY)

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