With the cost of business rising and the availability of resources drying up, it is not surprising that some corporations are enlisting the help of third party providers to help them become more efficient, and therefore remain competitive.
No longer are such exercises seen as just simply the imposition of costs to a business. If done effectively it can be a net benefit for a company as it is able to operate more efficiently.
Cosol (ASX:COS) is one such company that is helping industry to run its assets more efficiently using a selection of proprietary IT platforms and its advisory services.
COS has been in operation as a business for over 20 years, however it listed on the ASX in January 2020. Listing at 20 cents, the stock had a quick and meteoric rise, however has tailed off since then. However at a price of 76.5 cents as at (05/01), COS will go in the record books as one of the ‘good’ IPOs that rewarded initial investors handsomely.
Let’s fast forward the business to today and assess it moving forward.
The company actually formally refers to itself as, “…as a global leader in digital transformation and data exploitation”. This is a fancy way to say that by using data and analytics they help organisations operate their plant and equipment more efficiently, and therefore more profitably.
They service sectors where large and complex assets are being operated and where small improvements can make a very big difference to the bottom line.
COS’ services cover a range of industries. Divisionally the company is broken up into the mining, utilities, public infrastructure and defence industries. For a little company (market cap $108m) they have an impressive list of major names as clients.
At the moment around 80% of the company’s revenue is generated from within the Asia Pacific region, however the North American business is growing (17% of revenue) following recent acquisitions, and the company has high hopes for the region and has been delivering some solid results to support its belief.
StockRank ™
The StockRank for COS is 80 though it has been bubbling along this level since the company’s full year result in August, and finally crossed above 80 for the…
