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Cosol Limited (AU:COS)
ASX:COS
Australian Market
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Cosol Limited (COS) AI Stock Analysis

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AU:COS

Cosol Limited

(Sydney:COS)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
AU$0.20
▲(1.00% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by mixed financial performance: a strong, de-risked balance sheet and still-positive free cash flow are offset by FY2026’s revenue decline, sharp margin compression, and net loss. Technically, the stock remains below key moving averages, weighing on the outlook, while valuation is supported by a high dividend yield but limited by negative earnings.
Positive Factors
Low leverage and balance-sheet resilience
Material deleveraging reduces financial risk and gives CoSolve flexibility to withstand weaker trading, fund operations, and pursue opportunities without relying heavily on additional borrowing.
Negative Factors
Latest revenue contraction
A reversal from prior expansion weakens operating leverage and signals reduced project demand, delayed client work, or execution pressure. Sustained contraction would limit scale benefits and make recovery in profitability more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and balance-sheet resilience
Material deleveraging reduces financial risk and gives CoSolve flexibility to withstand weaker trading, fund operations, and pursue opportunities without relying heavily on additional borrowing.
Read all positive factors

Cosol Limited (COS) vs. iShares MSCI Australia ETF (EWA)

Cosol Limited Business Overview & Revenue Model

Company Description
COSOL Limited, together with its subsidiaries, delivers information technology services across Australia. The company utilizes its proprietary software and specialized service offerings to provide tailored solutions for clients operating in asset-...
How the Company Makes Money
CoSolve Limited makes money primarily by selling professional services to clients in asset-intensive sectors. Its main revenue streams are (1) consulting and advisory fees for assessing, designing, and improving asset management and maintenance pr...

Cosol Limited Financial Statement Overview

Summary
Mixed fundamentals. FY2026 saw a revenue decline (-9.3% YoY), sharp gross margin compression (~11% vs ~32% in FY2025), and a swing to a net loss (net margin ~-4.1%). Offsetting this, the balance sheet is strong with low leverage (debt-to-equity ~0.10) and cash flow remained positive (FY2026 FCF ~$5.8M), though free cash flow fell materially (~-42% YoY).
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
58
Neutral
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue98.55M116.81M101.93M75.10M48.24M
Gross Profit11.24M37.09M20.94M17.88M12.33M
EBITDA4.58M15.79M15.05M11.61M8.45M
Net Income-4.02M7.89M8.52M7.99M5.53M
Balance Sheet
Total Assets119.50M133.27M112.55M78.86M60.37M
Cash, Cash Equivalents and Short-Term Investments5.30M6.09M6.62M4.56M6.22M
Total Debt29.07M32.36M24.67M15.05M9.38M
Total Liabilities49.58M56.38M43.18M36.20M25.90M
Stockholders Equity69.92M76.90M69.37M42.66M34.48M
Cash Flow
Free Cash Flow5.81M6.04M5.96M3.50M6.81M
Operating Cash Flow6.18M7.60M7.34M4.74M7.69M
Investing Cash Flow-1.43M-10.52M-22.31M-6.70M-10.57M
Financing Cash Flow-5.46M2.38M17.02M248.94K4.79M

Cosol Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.20
Price Trends
50DMA
0.21
Negative
100DMA
0.21
Negative
200DMA
0.30
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.89
Neutral
STOCH
32.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COS, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:COS.

Cosol Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$1.71B31.1160.74%2.93%6.37%13.05%
65
Neutral
AU$33.14M40.196.26%15.94%
62
Neutral
AU$45.60M38.643.15%2.94%-7.66%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
AU$35.49M-9.28-5.58%10.84%-15.63%-150.34%
44
Neutral
AU$42.56M-1.90-28.68%-37.44%-1340.48%
43
Neutral
AU$95.42M-4.77-14.16%-6.74%64.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:COS
Cosol Limited
0.21
-0.39
-65.25%
AU:CCA
Change Financial Ltd
0.05
-0.04
-43.90%
AU:EML
EML Payments
0.25
-0.79
-76.21%
AU:CCG
Comms Group Ltd. (Australia)
0.09
0.03
51.79%
AU:DTL
Data#3 Limited.
11.07
2.27
25.84%
AU:ITS
Spirit Technology Solutions Ltd.
0.23
-0.32
-58.18%

Cosol Limited Corporate Events

Cosol Releases FY26 Results Presentation With Investor Disclaimers
Aug 18, 2026
Cosol Limited has released its FY26 results presentation dated 19 August 2026, outlining financial information, including non-IFRS measures such as EBITDA and EBIT, in a concise format for investors. The company emphasises that the document is inf...
COSOL sets investor call for FY26 full-year results
Aug 14, 2026
COSOL Limited will release its FY26 full-year financial results on 19 August 2026 and has scheduled an investor conference call featuring Managing Director Scott McGowan and CFO Anthony Stokes, followed by a QA session. The company is encouraging ...
Cosol Updates Market on Expiry of 1.4 Million Options
Aug 2, 2026
Cosol Limited has notified the market of the cessation of a class of its options, with 1,400,000 COSAJ options expiring on 1 August 2026 without being exercised or converted. The announcement, lodged as an Appendix 3H, updates investors on changes...
Cosol Issues New Performance Rights Under Employee Incentive Scheme
Jul 30, 2026
Cosol Limited, listed on the ASX under code COS, continues to use unquoted performance rights as a key component of its employee incentive framework. These securities are structured to align staff rewards with long-term company performance and are...
Cosol Performance Rights Lapse After Unmet Conditions
Jul 1, 2026
Cosol Limited has reported changes to its issued capital structure with the lapse of a tranche of performance rights. The company advised that 185,233 COSAL performance rights have ceased on 1 July 2026 because the conditions attached to these con...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2026