COG Financial Services (ASX: COG)
I was hoping to get your thoughts on COG Financial Services, or do you prefer others in the financial services space? Many thanks for the opportunity excellent work, Mark
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Answer
Hi Mark,
COG Financial Services (COG) is still down ~6% YTD, but as the chart below illustrates that hides a significant turnaround since the stock hit a 52-week low of $1.14 in April. The shares have since rallied almost 60%, including an 8% jump on Friday, as investors reverse much of the heavy de-rating that dominated the first half.
- Importantly, earnings expectations barely changed during the sell-off, forward EPS remained around 12c, while the P/E compressed from ~16x at the start of 2026 to around 8x, with the weakness largely valuation and sentiment-driven.
The recovery gained momentum following a strong FY26 result in August, with revenue from continuing operations rising 10% to $403.4m and NPAT jumping 29% to $24.2m. COG’s forward P/E has since recovered to ~11.7x but is still noticeably well below where it started the year.
The Financial Services sector has been a proverbial minefield in 2026 with a number of stocks down ~20% making COG actually look ok. This financial services group focuses on asset finance broking, novated leasing and specialist lending, primarily servicing SMEs and consumers with plenty of headwinds in its wheelhouse but also room for meaningful improvement for a company executing well in a tough environment.
- We like COG around $1.80, it’s not expensive, is performing operationally plus its ~4% fully franked yield is supportive.
