Cosan S.A. (CSAN): a likely value trap?

Avoid — this holding company just wrote its main investment (Raízen) down to zero and got its credit rating cut amid rising debt stress.

⚠ TRAP Fundamentals61/100

Down 86% from its all-time high of $20.75 — now $3.00

Why CSAN dropped

Cosan is a Brazilian holding company whose biggest asset was a stake in fuel distributor Raízen, which has been losing money and needed emergency capital; Cosan's stake in it was reduced to zero on its books and S&P downgraded Cosan's credit rating because of the fallout and weak debt coverage.

Fwd P/E 12.0Op margin 30.7%Rev growth 26.5%Debt/equity 109.8%Analyst upside 39.8%

How this scored 61/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Loss-making today, but operations are profitable (30.7%) and analysts expect positive earnings next year

✅ Generates cash Free cash flow $512M

✅ Not drowning in debt Debt/equity 109.8% (limit 200%)

✅ Can pay its bills Current ratio 1.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 9/25

Operating margin 30.7% 9/9

Net profit margin -23.9% 0/8

Return on equity -29.9% 0/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 26.5% 9/9

Earnings growth unknown 2/8

Expected profit change 109.6% 8/8

Value Is it cheap right now? 16/25

Forward P/E 12.0 9/10

PEG ratio unknown 2/8

Analyst target upside 39.8% 5/7

Balance sheet Will it survive? 17/25

Debt / equity 109.8% 5/10

Current ratio 1.9 5/8

Free cash flow $512M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-21. Research only — not financial advice.