Cosol (COS) today made a reasonably good announcement.

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.