Cosol (COS) today made a reasonably good announcement.
![047a9cf1b5a7c4778a24cc6acc932ff2f38baf.jpeg](//strawman.com/member/uploads/objects/6b/047a9cf1b5a7c4778a24cc6acc932ff2f38baf.jpeg)
Cosol is a SAAS company specialising in Asset Management Software.
- Major clients of this company include the likes of Rio Tinto, Glencore & Aurizon
- Revenue has grown from 12mil in FY2020 to 75mil in FY2023
- NPAT has grown from 1.5mil in FY2020 to 8mil in FY2023
- Todays Market Cap is 146mil and as such has a trailing PE of 18.5
Assuming the half yearly guidance can be annualised and reaches the bottom line this company could have an FY24 NPAT 11.1mil and a forward PE of 13.2. I won’t speculate on the probability of that occurring, however in a world where most asx listed SAAS companies carry a PE in the range of 30-60 this company looks like it has value.
I am however finding it difficult to zero in on the TAM, and how sticky if at all this companies software actually is. I’d love to get peoples thoughts.