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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Cousins Properties Incorporated (XNYS:CUZ) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CUZ
Name:
COUSINS PROPERTIES INCORPORATED (XNYS:CUZ)
Sector:
24.13M
Industry:
REIT�Office
CEO:
Mr. Michael Connolly
Total Employees:
294
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -75.35% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF COUSINS PROPERTIES INCORPORATED(CUZ) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REIT�OFFICE INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
26.81
One Month Price Target:
$26.97
Six Month Price Target :
$27.77
Likely Price in One Year's Time:
Ticker:
$28.72
Likely Trading Range Today Under (Normal Volatility)
$26.69
Price Upper limit ($) :
$26.92
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$25.43
This week:
$23.72
This month :
$20.63
Other Primary facts
Market Cap:
4.07B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
151.43M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
15.77%
-19.8%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$33.23
$30.33
$20.39
$23.29
Medium risk (<10%) entry points
Buy Call
Sell Call
$29.38
Buy Put:
Sell Put:
$28.76
$24.23
$24.86
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CUZ
Sharpe Ratio:
-1.43%
Comparison:
CUZ, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -38.25% lower than the industry
& is -162.56% lower than the market/S&P 500 average
Average Returns/Yield of
CUZ
Daily returns:
-0.03%
Weekly returns:
-0.13%
Monthly returns:
-0.54%
Yearly returns:
-13.59%
Comparison of returns:
Average annual returns/yield (last 3 years) is -52.74% below industry average
Classification:
CUZ, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.69
Statistical test of Returns:
CUZ has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.50%
Weekly Volatility:
5.58%
Monthly Volatility:
11.17%
Yearly Volatility:
38.68%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.73%
Volatility in last five trading days has been -70.68% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.15%
Weekly VaR:
-11.53%
Monthly VaR:
-23.05%
How Much Can the price of
CUZ
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-21%
Worst case (decline):
-79.86%
This translates to price declining to:
$21.26
This translates to price declining to:
$5.40
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
CUZ is a 62.71% riskier investment compared to the market/S&P 500 & is 39.39% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -9.46% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CUZ
Beta in relation to market/S&P 500--1.06
Expected beta in 1 year's time:
0.858
Expected beta in 3 year's time:
1.213
Unlevered (debt free) Beta:
-
Beta in relation to Nasdaq (XNAS):
0.758
Beta in relation to all global stocks::
0.921
Beta Comparison & Analysis
Beta of competitors/peers::
1.102
Beta is -3.60% lower than peers
Average Industry Beta:
0.988
Beta is 7.46% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
2.11%
Sustainable growth rate is -8.23% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.168
Alpha is -28.34% below industry average alpha yield
Alpha is -1072% below the market average
Analysis of Cost of Capital of
CUZ
Equity cost of capital:
0.104
Equity cost of capital is 5.09% above industry mean WACC
Unlevered (without debt) cost of capital:
-
Before-tax cost of debt:
2.72%
After-tax cost of debt:
2.15%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.15%
WACC is -6.35% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$4.97
Revenue growth rate per share of (3Y):
0.89
Annual revenue growth rate is -503.00% below industry average
EPS:
$1.86
Expected Annual growth rate of EPS (3Y):
16.92%
Expected future EPS growth rate is 45.88% higher than the REIT�Office industry
Free cash flow (FCF) per share:
$2.69
Balance sheet equity growth per share: 20.90%
Equity growth rate per share is -321.54% lower than the industry
Debt per share
$15.84
EBITDA per share
$4.17
Valuation Analysis Today of
CUZ
P/E Ratio:
14.11
P/E Ratio of Competitors/Peers:
29.26
P/E ratio is -51.77% lower than main peers & is -77.11% lower than the industry
Stock price/value with industry average P/E ratio: $114.68
CUZ is -76.62% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $30.05
Present value of the expected future dividends only: $13.57
P/S (Price to Sales ratio):
5.4
Price to sales ratio is -17.26% below the industry mean
P/B (Price to book value ratio):
0.89
Price to free cash flow: 9.98
Price to free cash flow ratio is 2.18% higher than the industry
Net income growth rate (3Y):
149.38%
Net income growth rate is 196.88% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 16.61%
Dividend yeild: 4.66%
Previous Dividend: $0.32
Previous adjusted dividend: $0.32
Previous Dividend: $1.25
Expected next dividend best case: $0.33
Expected next dividend worst case: $0.31
Average dividend payment (long-term): $0.31
Average dividend increase/decrease (growth rate) % per period: 1.11%
Expected next dividend payment date: 13/07/2022
Expected next dividend record date: 07/04/2022
Expected next dividend declaration date: 20/06/2022
Previous dividend payment date: 14/04/2022
Previous dividend record date: 04/05/2022
Previous dividend declaration date: 21/03/2022
Dividend History:
2022-04-04--$0.32
2021-10-04--$0.31
2021-04-05--$0.31
2022-01-04--$0.31
2021-07-02--$0.31
2020-12-31--$0.30
Dividend growth rate is -109.66% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
52.75%
Net debt to equity ratio:
52.59%
Debt to assets ratio:
32.59%
Net debt to assets ratio:
32.50%
Debt-to-asset ratio is -114.29% below industry average
Ability to repay debt:
Interest coverage ratio:
9.65
Interest coverage ratio is -355.01% less than industry average
Looking forward:
Debt growth rate:
0.73%
Annual debt growth is -116% lower than industry average debt growth rate
Debt repayment rate in last quarter: 1.63%
Analysis of Key Statistics
Correlation of price movement with the market:
0.688
Statistical significance of correlation:
CUZ has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.626
Stock price is 9.87% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.626
Correlation of price movement with Nasdaq (^IXIC):
0.035
Covariance of price movement with the market:
0.051
Kurtosis
12.457
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.406
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
CUZ
Gross Profit Margin Ratio:
263%
Operating Profit Margin Ratio:
23.37%
Operating profit margin is 17.91% higher than the industry
Net Profit Margin Ratio:
263%
Effective Tax Rate:
-
-
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
6.10%
Return on equity (ROE) is 39.18% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.77%
Return on assets (ROA) is 36.43% higher than the industry
Financial Leverage:
1.5x
Current Ratio:
0.75
Current ratio is -138.17% below industry average
Cash Conversion Cycle (days):
80.9
Cash conversion cycle is 149.19% above industry average
The remaining useful life of property plant & equipment is: 3.3 years
Stock based compensation to net income ratio:
0.99%
In-depth Efficiency Analysis
Revenue generated per employee:
2.6M
Each employee generates 12% more revenue than industry average revenue per employee
EBITDA generated per employee:
2.1M
Each employee generates 26% more EBITDA than industry average revenue per employee
Profit generated per employee:
943.7K
Each employee generates 45% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
82.1K
Each employee generates 108% more free cash flow than industry average revenue per employee
Assets/Capital per employee
24.4M
Each employee generates 108% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
CUZ
DOUGLAS EMMETT, INC. (XNYS:DEI)
MGM GROWTH PROPERTIES LLC (XNYS:MGP)
IQVIA HOLDINGS INC (XFRA:QTS)
TERRENO REALTY CORPORATION (XNYS:TRNO)
NATIONAL STORAGE AFFILIATES TRUST (XNYS:NSA)
THE HOWARD HUGHES CORPORATION (XNYS:HHC)
RAYONIER INC. (XNYS:RYN)
SL GREEN REALTY CORP. (XNYS:SLG)
INNOVATIVE INDUSTRIAL PROPERTIES, INC. (XNYS:IIPR)
Current Analyst Ratings
Strong buy�8%
Buy�4%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
752.42M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
257.94M
494.48M
-
30.65M
30.65M
-
287.97M
318.62M
-
65.34M
287.97M
630.77M
175.86M
277.46M
277.85M
-
277.46M
Statement of Cash Flow
Date:
Period:
70.74M
Differed Income Tax :
-
Stock Based Compensation :
2.75M
Change in Working Capital :
- 70005.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 7525.00K
Net Cash Provided by Operating Activities:
24.13M
Investments in PP&E:
-
Net Acquisitions:
- 15686.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
7.00M
-
7.00M
177.29M
-
14.62M
198.91M
19.81M
1.67M
158.18M
93.31M
-
6.89B
7.16B
-
7.36B
-
-
-
74.95M
192.03M
266.98M
2.40B
111.65M
2.51B
-
2.78B
151.35M
- 1005951.00K
-
-
March 31, 2022 at 6:00:00 AM
576.56M
4.55B
7.33B
-
2.40B
2.4B
-
- 77779.00K
- 93465.00K
- 39697.00K
-
-
- 46093.00K
153.19M
67.40M
-
- 1937.00K
8.23M
10.17M
24.13M
-
24.13M
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
CUZ
2023
2024
2025
2026
2027
$28.86
$44.49
$47.67
$51.07
$54.71