Cosan Limited (NYSE:CZZ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CZZ, it has a an impressive track record of performance and a buoyant future outlook not yet factored into the price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Cosan here.
High growth potential and good value
Over the past few years, CZZ has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did CZZ outperformed its past performance, its growth also exceeded the Oil and Gas industry, which also generated a significant triple-digit earnings growth. This is an notable feat for the company.
CZZ’s share price is trading below its true value according to its price-to-equity ratio of 10.87x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.
For Cosan, I’ve compiled three essential aspects you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does CZZ return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CZZ as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CZZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.