Organic Growth Efforts Aid Cohen & Steers Amid Rising Costs
Zacks Investment Research | Sep 30, 2019 08:33AM ET
Cohen & Steers Inc. (NYSE:CNS) is well poised for growth in the upcoming period, backed by solid asset under management (AUM) balance, diverse product offerings and investment strategies. However, persistently rising operating expenses is a near-term headwind.
Given the organic growth efforts and solid AUM balance, Cohen & Steers’ total revenues (GAAP basis) witnessed a five-year CAGR of 2.1% (ended 2018). In addition, the company’s diverse product offerings and investment strategies are expected to further fuel top-line growth.
Also, Cohen & Steers’ total AUM has been witnessing consistent improvement. With improving economic conditions and favorable equity-market performance, its AUM balance is likely to register further growth in the quarters ahead.
Moreover, given a strong liquidity position, the company is expected to continue enhancing shareholders’ value through efficient capital-deployment activities. Notably, since 2011, Cohen & Steers has been increasing its dividend annually, with the latest one announced this February. Additionally, the company announced a special dividend in November 2018. Such actions, backed by solid liquidity position and earnings strength, make its capital plans sustainable.
Remarkably, shares of Cohen & Steers have surged 60.3% so far this year, outperforming the Original post
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