Cohen & Company Inc. (COHN) | Investment Case

1. Company Snapshot

1.a. Company Description

Cohen & Company Inc.is a publicly owned investment manager.The firm primarily provides its services to individuals and institutions.

It manages separate client-focused fixed income portfolios.Institutional Financial Markets, Inc.also manages funds and collateralized debt obligations for its clients.

It invests in the fixed income and alternative investment markets across the globe.The firm's fixed income investments include U.S. trust preferred securities, European hybrid capital securities, Asian commercial real estate debt, mortgage backed securities, and asset backed securities.The firm was formerly known as Institutional Financial Markets, Inc.

Cohen & Company Inc.was founded in 1999 and is based in Philadelphia, Pennsylvania with additional offices in New York City; Boca Raton, Florida; Chicago, Illinois; Bethesda, Maryland; Boston, Massachusetts; Paris, France; and London, United Kingdom.

Show Full description

1.b. Last Insights on COHN

Cohen & Company's recent performance was negatively impacted by a decline in net trading revenue, which decreased by 12.1% year-over-year to $8.9 million in the fourth quarter. Additionally, principal transactions and other revenue plummeted by 143.1% to $2.5 million, primarily due to a significant decline in revenue from equity method affiliates. Furthermore, the company's operating income (loss) was significantly lower at $-5.5 million, compared to $11.4 million in the same period last year.

1.c. Company Highlights

Last Price	16.76
Change Percentage	-0.89%
Open	16.11
Previous Close	16.91
Market Cap ( Millions)	34
Volume	47229
Year High	19.22
Year Low	6.1
M A 50	12.08
M A 200	10.25

FCF Yield	95.41%
Dividend Yield	5.97%
ROE	10.01%
Debt / Equity	1060.08%
Net Debt / EBIDTA	1831.35%
Price To Book	0.61
Price Earnings Ratio	6.67
Price To FCF	1.05
Price To sales	0.18
EV / EBITDA	19.69

2. Cohen & Company Shines in Q3 2025 with Strong Revenue Growth

Cohen & Company's third-quarter 2025 earnings report revealed a robust financial performance, with total revenue reaching $84.2 million and adjusted pretax income of $16.4 million, representing 19.4% of total revenue. The company's net income attributable to shareholders was $4.6 million, while earnings per share (EPS) came in at 107, significantly beating estimates of 36.5. Year-to-date, total revenue stood at $172.8 million, with adjusted pretax income of $23.2 million, or 13.4% of total revenue. The company's revenue growth was driven by its strong performance in Cohen & Company Capital Markets (CCM), which generated $68.6 million in net revenue across 18 clients.

Publication Date: Nov -21

                                    📋 Highlights
                                    Q3 Revenue & Profitability::
                                                Total revenue $84.2M, adjusted pretax income $16.4M (19.4% margin); YTD revenue $172.8M, adjusted pretax income $23.2M (13.4% margin).
CCM Performance::
                                                Generated $68.6M net revenue with 18 clients, including a $300M gross pipeline from 14 de-SPAC seekers and 4 active transactions.
Trading & Repo Growth::
                                                Net trading revenue rose 26% to $13.6M; gross repo book expanded to $3.3B, enhancing net trading opportunities.
Full-Year Projections::
                                                Expects >$220M revenue in 2025, >$50M in Q4, with revenue per employee rising to $1.8M (up from $700K in 2024).
Principal Transactions Impact::
                                                $146M loss on investment assets reduced principal transactions revenue, offsetting SPAC-driven new issue/advisory gains ($228M).

                                

Business Segment Highlights

The company's CCM segment has underwritten 18 SPAC IPOs, with four announcing transactions and 14 searching for de-SPAC target companies, representing a $300 million gross pipeline of possible transactions. The declining interest rate environment boosted trading revenue, which was up 26% in the third quarter. The company's gross gestation repo book has grown to over $3.3 billion, providing additional opportunities to enhance net trading revenue.

Outlook and Guidance

Cohen & Company expects to continue growing its CCM revenue base and is confident in its ability to attract incremental talent. The company anticipates generating more than $50 million in revenue in the fourth quarter and more than $220 million in revenue for the full year 2025. Compensation and benefits expense is expected to be in the range of 68% to 72% of revenue, with adjusted pretax income in the range of 10% to 15% of revenue.

Valuation and Metrics

With a Price-to-Sales (P/S) Ratio of 0.14 and a Price-to-Book (P/B) Ratio of 0.49, Cohen & Company's valuation appears reasonable. The company's Return on Equity (ROE) stands at 10.01%, indicating a decent level of profitability. The Dividend Yield is 7.36%, which may attract income investors. As the company continues to grow its revenue base and expand its CCM franchise, investors will be watching to see if the company's valuation multiples expand accordingly.

3. NewsRoom

Cohen & Company Inc. (COHN) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Cohen & Company Sets Release Date for Third Quarter 2025 Financial Results

Oct -31

Source: globenewswire.com

Cohen & Company Reports Second Quarter 2025 Financial Results

Jul -31

Source: globenewswire.com

Cohen & Company Sets Release Date for Second Quarter 2025 Financial Results

Jul -28

Source: globenewswire.com

JVB Financial Announces Name Change to Cohen & Company Securities

Jul -01

Source: globenewswire.com

Cohen & Company Inc. (COHN) Q1 2025 Earnings Call Transcript

May -02

Source: seekingalpha.com

Cohen & Company Reports First Quarter 2025 Financial Results

May -01

Source: globenewswire.com

Cohen & Company Sets Release Date for First Quarter 2025 Financial Results

Apr -28

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Capital Markets

Expected Growth: 8.5%

Cohen & Company Inc.'s Capital Markets segment is poised for growth driven by increasing demand for investment banking, trading, and brokerage services from corporate and institutional clients, fueled by economic expansion and regulatory reforms.

Principal Investing

Expected Growth: 8.5%

Principal Investing from Cohen & Company Inc. is poised for growth driven by increasing demand for capital for growth, recapitalization, and restructuring. The segment benefits from Cohen & Company's expertise in providing financing solutions, generating returns through equity and debt investments.

Asset Management

Expected Growth: 8.5%

Increasing demand for diversified investment solutions, growing high net worth individual population, and rising adoption of digital wealth management platforms drive growth in Cohen & Company's asset management business.

7. Detailed Products

Valuation and Portfolio Advisory

Cohen & Company Inc. provides valuation and portfolio advisory services to help clients make informed investment decisions. The company's team of experts provides independent and unbiased valuations of securities, derivatives, and other financial instruments.

Risk Advisory

Cohen & Company Inc. offers risk advisory services to help clients identify, assess, and mitigate risks associated with their investments. The company's risk advisory team provides expertise in risk management, compliance, and regulatory consulting.

Compliance and Regulatory Consulting

Cohen & Company Inc. provides compliance and regulatory consulting services to help clients navigate the complex regulatory landscape. The company's team of experts provides guidance on compliance, regulatory reporting, and audit support.

Financial Reporting and Audit Support

Cohen & Company Inc. offers financial reporting and audit support services to help clients prepare financial statements and navigate the audit process. The company's team of experts provides expertise in financial reporting, accounting, and auditing.

Tax Advisory

Cohen & Company Inc. provides tax advisory services to help clients navigate the complex tax landscape. The company's team of experts provides expertise in tax planning, compliance, and controversy.

8. Cohen & Company Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cohen & Company Inc. is moderate due to the availability of alternative investment options for clients.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of clients in the financial industry, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers for the company's operational needs.

Threat Of New Entrants

The threat of new entrants is moderate due to the regulatory barriers and capital requirements for entering the financial industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the financial industry, with multiple established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	91.49%
Debt Cost	9.53%
Equity Weight	8.51%
Equity Cost	9.53%
WACC	9.53%
Leverage	1074.71%

11. Quality Control: Cohen & Company Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

Cohen & Company

A-Score: 6.1/10

Value: 7.5

Growth: 3.9

Quality: 3.2

Yield: 10.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

Virtu Financial

A-Score: 5.9/10

Value: 5.4

Growth: 5.6

Quality: 4.8

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Westwood Holdings

A-Score: 5.8/10

Value: 5.3

Growth: 2.6

Quality: 6.2

Yield: 9.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Perella Weinberg

A-Score: 4.7/10

Value: 5.3

Growth: 2.8

Quality: 6.6

Yield: 4.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

Donnelley Financial Solutions

A-Score: 3.5/10

Value: 4.2

Growth: 4.6

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-11.23%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.53%

Cohen & Company Inc. - US19249M1027

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on COHN

1.c. Company Highlights

More Volatile

Higher Yield

Strong Momentum

Lower Quality

Lower Growth

Cheaper

Weak Momentum

Average Growth

2. Cohen & Company Shines in Q3 2025 with Strong Revenue Growth

Business Segment Highlights

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Capital Markets

Expected Growth: 8.5%

Principal Investing

Expected Growth: 8.5%

Asset Management

Expected Growth: 8.5%

7. Detailed Products

Valuation and Portfolio Advisory

Risk Advisory

Compliance and Regulatory Consulting

Financial Reporting and Audit Support

Tax Advisory

8. Cohen & Company Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cohen & Company Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.76$

Current Price

16.76$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA