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Cowen

Nasdaq:COWN
Snowflake Description

Slightly overvalued with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
COWN
Nasdaq
$257M
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Cowen Inc. is a publicly owned asset management holding company. The last earnings update was 32 days ago. More info.


Add to Portfolio Compare Print
  • Cowen is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Cowen has significant price volatility in the past 3 months.
COWN Share Price and Events
7 Day Returns
-6.7%
NasdaqGS:COWN
-1.1%
US Capital Markets
-2.8%
US Market
1 Year Returns
-43.1%
NasdaqGS:COWN
-14.5%
US Capital Markets
-15.9%
US Market
COWN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cowen (COWN) -6.7% -35.8% -43.1% -43.1% -35.4% -59.3%
US Capital Markets -1.1% -17.6% -24.9% -14.5% 0.6% 18.4%
US Market -2.8% -18.8% -24% -15.9% 2.8% 13.3%
1 Year Return vs Industry and Market
  • COWN underperformed the Capital Markets industry which returned -14.5% over the past year.
  • COWN underperformed the Market in United States of America which returned -15.9% over the past year.
Price Volatility
COWN
Industry
5yr Volatility vs Market

COWN Value

 Is Cowen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cowen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cowen.

NasdaqGS:COWN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $24.26 * 2.8%
$0.69
Book Value of Equity per Share Median Book Value from the past 5 years. $24.26
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:COWN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.743 (1 + (1- 21%) (875.27%))
1.123
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.123 * 5.44%)
7.85%

Discounted Cash Flow Calculation for NasdaqGS:COWN using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cowen is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:COWN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (2.8% – 7.85%) * $24.26)
$-1.21
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-1.21 / (7.85% - 1.74%)
$-19.88
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $24.26 + $-19.88
$4.38
NasdaqGS:COWN Discount to Share Price
Calculation Result
Value per share (USD) From above. $4.38
Current discount Discount to share price of $8.98
= -1 x ($8.98 - $4.38) / $4.38
-105.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cowen is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cowen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cowen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:COWN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.60
NasdaqGS:COWN Share Price ** NasdaqGS (2020-04-03) in USD $8.98
United States of America Capital Markets Industry PE Ratio Median Figure of 92 Publicly-Listed Capital Markets Companies 33.66x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cowen.

NasdaqGS:COWN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:COWN Share Price ÷ EPS (both in USD)

= 8.98 ÷ 0.60

14.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cowen is good value based on earnings compared to the US Capital Markets industry average.
  • Cowen is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cowen's expected growth come at a high price?
Raw Data
NasdaqGS:COWN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
United States of America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 2.03x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.88x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Cowen, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cowen's assets?
Raw Data
NasdaqGS:COWN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $24.77
NasdaqGS:COWN Share Price * NasdaqGS (2020-04-03) in USD $8.98
United States of America Capital Markets Industry PB Ratio Median Figure of 182 Publicly-Listed Capital Markets Companies 7.67x
United States of America Market PB Ratio Median Figure of 5,146 Publicly-Listed Companies 1.2x
NasdaqGS:COWN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:COWN Share Price ÷ Book Value per Share (both in USD)

= 8.98 ÷ 24.77

0.36x

* Primary Listing of Cowen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cowen is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Cowen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Cowen has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

COWN Future Performance

 How is Cowen expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Cowen expected to grow at an attractive rate?
  • Unable to compare Cowen's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Cowen's earnings growth to the United States of America market average as no estimate data is available.
  • Cowen's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:COWN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:COWN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 8.9%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:COWN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:COWN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,048 2
2020-12-31 985 2
2020-04-05
NasdaqGS:COWN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 875 -180 18
2019-09-30 869 -128 18
2019-06-30 868 70 29
2019-03-31 825 230 29
2018-12-31 855 324 36
2018-09-30 803 176 -45
2018-06-30 772 -99 -56
2018-03-31 710 21 -54
2017-12-31 585 3 -68
2017-09-30 518 108 6
2017-06-30 460 135 -1
2017-03-31 420 -67 -19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Cowen is high growth as no earnings estimate data is available.
  • Cowen's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:COWN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Cowen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:COWN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-05
NasdaqGS:COWN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.60
2019-09-30 0.60
2019-06-30 0.99
2019-03-31 0.98
2018-12-31 1.22
2018-09-30 -1.50
2018-06-30 -1.84
2018-03-31 -1.79
2017-12-31 -2.29
2017-09-30 0.22
2017-06-30 -0.05
2017-03-31 -0.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cowen is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cowen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cowen has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

COWN Past Performance

  How has Cowen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cowen's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cowen's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Cowen's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cowen's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
Cowen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cowen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:COWN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 875.19 17.84 648.82
2019-09-30 868.88 17.70 622.55
2019-06-30 868.10 29.37 621.56
2019-03-31 824.53 28.96 608.71
2018-12-31 855.23 36.03 616.32
2018-09-30 803.45 -45.02 604.01
2018-06-30 772.02 -55.85 574.67
2018-03-31 710.29 -53.81 546.23
2017-12-31 585.14 -67.67 487.36
2017-09-30 517.55 6.39 450.57
2017-06-30 459.54 -1.49 440.70
2017-03-31 420.37 -19.39 387.47
2016-12-31 409.68 -26.07 374.58
2016-09-30 391.56 6.48 378.00
2016-06-30 389.76 -0.56 335.78
2016-03-31 392.94 17.56 353.68
2015-12-31 415.69 39.65 384.21
2015-09-30 416.67 153.18 393.71
2015-06-30 406.48 171.65 401.03
2015-03-31 376.26 174.07 388.88
2014-12-31 365.19 167.22 358.92
2014-09-30 355.86 27.26 310.48
2014-06-30 336.47 24.35 298.09
2014-03-31 328.68 17.06 280.59
2013-12-31 289.94 4.65 257.53
2013-09-30 262.62 -7.22 254.51
2013-06-30 244.08 -21.42 247.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cowen has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cowen used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if Cowen improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Cowen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cowen has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

COWN Health

 How is Cowen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cowen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cowen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cowen's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cowen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cowen Company Filings, last reported 3 months ago.

NasdaqGS:COWN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,295.45 2,150.84 3,271.41
2019-09-30 1,250.24 1,860.64 2,956.17
2019-06-30 1,257.74 1,945.25 2,997.51
2019-03-31 1,233.06 1,276.08 2,238.61
2018-12-31 1,076.21 825.03 1,619.77
2018-09-30 1,011.46 979.42 1,866.50
2018-06-30 1,205.27 860.35 1,519.78
2018-03-31 1,151.11 912.97 1,538.88
2017-12-31 1,188.62 817.55 1,622.29
2017-09-30 1,265.18 677.33 1,451.55
2017-06-30 1,251.91 406.57 1,210.93
2017-03-31 1,172.39 223.33 856.44
2016-12-31 1,151.86 226.55 933.68
2016-09-30 1,103.11 221.67 731.25
2016-06-30 1,085.28 243.50 616.04
2016-03-31 1,107.86 237.02 793.53
2015-12-31 976.90 209.42 853.27
2015-09-30 934.02 212.83 1,034.75
2015-06-30 947.72 252.79 1,045.06
2015-03-31 776.05 228.89 731.72
2014-12-31 763.75 905.55 1,648.19
2014-09-30 630.30 2,473.44 3,084.66
2014-06-30 627.95 2,420.36 2,953.88
2014-03-31 617.69 1,476.46 1,902.78
2013-12-31 593.58 929.95 1,305.66
2013-09-30 601.49 901.89 1,324.48
2013-06-30 597.69 589.80 1,099.60
  • Cowen's level of debt (166%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (117.6% vs 166% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Cowen's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Cowen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cowen has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

COWN Dividends

 What is Cowen's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.78%
Current annual income from Cowen dividends.
If you bought $2,000 of Cowen shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cowen's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.07%).
  • Cowen's dividend is below the markets top 25% of dividend payers in United States of America (5.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:COWN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1936 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:COWN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-05
NasdaqGS:COWN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-12 0.160 1.454

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Cowen has stable dividend payments.
  • Cowen only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Cowen's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (15.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Cowen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cowen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cowen has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

COWN Management

 What is the CEO of Cowen's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Solomon
COMPENSATION $5,088,857
AGE 53
TENURE AS CEO 2.3 years
CEO Bio

Mr. Jeffrey Marc Solomon, also known as Jeff, has been the Chief Executive Officer at Cowen Inc. since December 27, 2017 and was its Chairman of the Board since June 25, 2019 until 2020. Mr. Solomon has been the Chief Executive Officer at Cowen and Company, LLC since October 2011 and oversees all of firm’s businesses, including investment banking, sales and trading and research. He also serves as Chairman of the Board at Cowen and Company, LLC. He was the President of Cowen Inc. since September 2014. Mr. Solomon is the founder of Cowen Inc. Previously, he served as the Chief Operating Officer at Cowen Group, Inc. and as its Chief Strategy Officer until April 29, 2010. Previously, he served as the Head of Investment Banking at Cowen & Company, LLC. He served as a Special Advisor at Mistral Acquisition Company. He served as a Managing Officer at Ramius HVB. He Co-Founded Ramius, LLC and served as its Chief Operating Officer responsible for overseeing multi-strategy investment platform. He was responsible for Ramius, LLC structured finance and credit initiatives. Mr. Solomon joined Ramius, LLC in 1994 and was responsible for the development, management, and oversight of a number of the investment strategies during his tenure. Prior to that, he served as the Chief Administrative Officer, and Head of Corporate Development and Strategic Planning at Republic New York Securities Corporation from 1991 to 1994. In 1993, Mr. Solomon supervised Republic New York Securities Corporation expansion into Europe by overseeing the creation of its U.K. affiliate and was responsible for initiating the initial foray into the alternative investment business through its Republic Asset Management affiliate. He coordinated the budget process and marketing efforts and directed numerous regulatory filings with the Federal Reserve Board. Mr. Solomon served in the Mergers and Acquisitions Group at Shearson Lehman Brothers, Inc. He was also part of the internal corporate finance team that worked closely with senior management in evaluating the operations, capital usage, and investment strategies, including the acquisition and disposition of corporate assets. Mr. Solomon is a Director of NuGo Nutrition. He has been Director of Cowen Inc. since December 12, 2011. He serves as Director of Hale & Hearty Soups L.L.C, and Lifestyle Evolution Inc. He serves as a Member of the Advisory Board of GermanCapital GmbH. He served as Director of Acrobatiq, Inc until October 23, 2015. Mr. Solomon served as a Director of Tollgrade Communications Inc. from August 5, 2009 to May 10, 2011. He is also a Co-Chair of the Equity Capital Formation Task Force. Mr. Solomon graduated from The University of Pennsylvania in 1988 with a B.A. in Economics.

CEO Compensation
  • Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cowen management team in years:

3.2
Average Tenure
54
Average Age
  • The tenure for the Cowen management team is about average.
Management Team

Jeff Solomon

TITLE
Chief Executive Officer
COMPENSATION
$5M
AGE
53
TENURE
2.3 yrs

Steve Lasota

TITLE
MD & CFO
COMPENSATION
$3M
AGE
56
TENURE
10.4 yrs

John Holmes

TITLE
MD & COO
COMPENSATION
$3M
AGE
55
TENURE
5.2 yrs

Owen Littman

TITLE
MD, General Counsel & Secretary
COMPENSATION
$3M
AGE
46
TENURE
9.8 yrs

Elizabeth Rosman

TITLE
MD & Head of Investment Management
TENURE
1.7 yrs

Zach Fisher

TITLE
Managing Director of Technology
TENURE
3.7 yrs

Ann Neidenbach

TITLE
MD & Chief Information Officer
TENURE
2.8 yrs

J.T. Farley

TITLE
MD & Head of Investor Relations
TENURE
1.1 yrs

Rhys Brooks

TITLE
Head of Sales Trading

Jane Gerhard

TITLE
MD & Head of Human Resources
Board of Directors Tenure

Average tenure and age of the Cowen board of directors in years:

3.4
Average Tenure
64
Average Age
  • The tenure for the Cowen board of directors is about average.
Board of Directors

Steven Kotler

TITLE
Independent Director
COMPENSATION
$198K
AGE
72
TENURE
9.8 yrs

Jerome Markowitz

TITLE
Lead Independent Director
COMPENSATION
$248K
AGE
79
TENURE
0.8 yrs

Wendy Dietze

TITLE
Independent Director
COMPENSATION
$218K
AGE
61
TENURE
8.8 yrs

Jack Nusbaum

TITLE
Independent Director
COMPENSATION
$188K
AGE
78
TENURE
10.4 yrs

Doug Rediker

TITLE
Independent Director
COMPENSATION
$188K
AGE
58
TENURE
5 yrs

Brett Barth

TITLE
Independent Director
COMPENSATION
$188K
AGE
47
TENURE
1.8 yrs

Lawrence Leibowitz

TITLE
Independent Director
COMPENSATION
$188K
AGE
58
TENURE
1.8 yrs

Margaret Poster

TITLE
Independent Director
AGE
67
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cowen individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Mar 20 Buy Brett Barth Individual 19. Mar 20 19. Mar 20 10,000 $6.29 $62,934
13. Mar 20 Buy Brett Barth Individual 12. Mar 20 12. Mar 20 10,000 $10.04 $100,390
11. Mar 20 Buy John Holmes Individual 09. Mar 20 09. Mar 20 2,000 $12.13 $24,261
11. Mar 20 Buy Owen Littman Individual 09. Mar 20 09. Mar 20 2,000 $12.13 $24,261
11. Mar 20 Buy Brett Barth Individual 09. Mar 20 09. Mar 20 10,000 $12.13 $121,305
11. Mar 20 Buy Jeffrey Solomon Individual 09. Mar 20 09. Mar 20 10,000 $12.13 $121,305
11. Mar 20 Buy Stephen Lasota Individual 09. Mar 20 09. Mar 20 2,000 $12.13 $24,261
11. Mar 20 Buy Lawrence Leibowitz Individual 09. Mar 20 09. Mar 20 8,000 $12.13 $97,044
30. Jul 19 Sell Owen Littman Individual 29. Jul 19 29. Jul 19 -10,000 $17.88 $-178,849
04. Jun 19 Buy Brett Barth Individual 31. May 19 31. May 19 20,000 $15.29 $305,780
X
Management checks
We assess Cowen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cowen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

COWN News

Simply Wall St News

What Is Cowen Inc's (NASDAQ:COWN) Share Price Doing?

saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value.

Simply Wall St -

Is It Time To Buy Cowen Inc (NASDAQ:COWN)?

I find that Cowen’s ratio of 0.69x is trading slightly below its industry peers’ ratio of 2.16x, which means if you buy Cowen today, you’d be paying a relatively reasonable price for it. … And if you believe Cowen should be trading in this range, then there isn’t much room for the share price grow beyond what it’s currently trading. … Since Cowen’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy.

Simply Wall St -

Will Cowen Inc (NASDAQ:COWN) Continue To Underperform Its Industry?

Check out our latest analysis for Cowen Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Cowen’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:COWN Last Perf Feb 15th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Should Cowen Inc's (COWN) Recent Earnings Worry You?

I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … This means Cowen's average annual net income has traditionally been larger, which signals a downward trend in earnings. … Inspecting growth from a sector-level, the US capital markets industry has been growing its average earnings by double-digit 16.42% over the past year, and 10.45% over the past five.

Simply Wall St -

With A Recent ROE Of 5.43%, Can Cowen Inc (COWN) Catch Up To Its Industry?

Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:COWN Last Perf Oct 26th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

COWN Company Info

Description

Cowen Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is headquartered in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.

Details
Name: Cowen Inc.
COWN
Exchange: NasdaqGS
Founded: 1994
$257,332,101
28,656,136
Website: http://www.cowen.com
Address: Cowen Inc.
599 Lexington Avenue,
20th Floor,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS COWN Class A Common Stock Nasdaq Global Select US USD 02. Nov 2009
OTCPK CWGR.P CUM PERP PFD CON Pink Sheets LLC US USD 24. May 2016
Number of employees
Current staff
Staff numbers
1,325
Cowen employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 12:27
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/03/04
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.