tiprankstipranks
Trending News
More News >
Cogstate Ltd (AU:CGS)
ASX:CGS
Advertisement

Cogstate Ltd (CGS) AI Stock Analysis

Compare
9 Followers

Top Page

AU

Cogstate Ltd

(Sydney:CGS)

Rating:73Outperform
Price Target:
AU$2.00
▲(9.89%Upside)
Cogstate Ltd's overall stock score reflects strong financial performance and positive earnings call highlights. While technical analysis shows bullish momentum, overbought conditions suggest caution. Valuation concerns due to a high P/E ratio further moderate the overall score. The company's solid financial foundation and promising growth prospects, particularly in clinical trials, are significant strengths.

Cogstate Ltd (CGS) vs. iShares MSCI Australia ETF (EWA)

Cogstate Ltd Business Overview & Revenue Model

Company DescriptionCogstate Limited, a neuroscience technology company, provides computerized cognitive tests and electronic clinical outcome assessment solutions. The company's cognitive services include project management, data management, scientific consulting, statistical analysis, scales procurement, rater training, and monitoring solutions. It operates in Clinical Trials and Healthcare segments. The Clinical Trials segment provides technology and associated services that are used to quantify the effect of diseases and drugs, and devices or other interventions on human subjects participating in clinical trials primarily conducted by pharmaceutical and biotechnology companies. The Healthcare segment provides Cognigram, a system for regular and standardized testing to assist primary care physicians and/or hospitals in the early detection of cognitive decline. As of June 30, 2022, it had participated in approximately 1,800 academic research. Cogstate Limited was incorporated in 1999 and is based in Melbourne, Australia.
How the Company Makes MoneyCogstate Ltd generates revenue primarily through the sale of its cognitive assessment products and services. The company's revenue streams include licensing fees from pharmaceutical companies and research institutions that use Cogstate's digital cognitive tests in clinical trials and research studies. Additionally, Cogstate earns income from its healthcare segment by providing cognitive assessment services to healthcare providers and organizations. Key partnerships with pharmaceutical companies and healthcare providers significantly contribute to its revenue, as these collaborations often involve long-term contracts and recurring revenue streams from the ongoing use of Cogstate's assessment tools.

Cogstate Ltd Earnings Call Summary

Earnings Call Date:Feb 19, 2025
(Q2-2025)
|
% Change Since: 46.77%|
Next Earnings Date:Aug 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, especially in the clinical trials segment, and strong profit before tax. The successful partnership with Medidata also bodes well for future opportunities. However, the decline in contracted future revenue and healthcare revenue, as well as a reduction in workforce, present some challenges. Overall, the positive aspects, particularly the record revenue and profitable growth, outweigh the negatives.
Q2-2025 Updates
Positive Updates
Record Half-Year Revenue
Total revenue of $23.9 million was a record half-year result, up 19% compared to the previous corresponding period.
Significant Growth in Clinical Trials Revenue
Clinical trials revenue increased by 27% compared to the previous corresponding period.
Profit Before Tax Surge
Profit before tax of $5.2 million was up 150% on the previous corresponding period.
Positive Operating Cash Flow
Operating cash flow of $5 million, resulting in a closing cash balance of $34.2 million.
Strong Sales Contracts Execution
Sales contracts executed totaled $20.3 million, up 86% on the first half of the previous year.
Medidata Partnership Success
First joint award achieved with Medidata, with an established strong initial pipeline of opportunities from 28 different pharma sponsors.
Negative Updates
Reduction in Contracted Future Revenue
Contracted future revenue at 31 December 2024 was just over $99 million, down 20% from 31 December 2023.
Decline in Health Care Revenue
Reduction in health care revenue due to the amendment of the Eisai agreement, with revenue down by $0.6 million half to half and $1 million compared to the previous corresponding period.
Decrease in Workforce
Number of employees reduced to 154, down from 166 the previous year and over 200 pre-COVID.
Decrease in Value of Contracted Clinical Trials Revenue
An 8% reduction in the value of contracted future clinical trials revenue.
Company Guidance
In the recent call discussing Cogstate's financial results for the first half of the 2025 fiscal year, the company highlighted a record revenue of $23.9 million, marking a 19% increase from the previous year's corresponding period. The revenue growth was driven primarily by a 27% rise in clinical trials revenue, despite a reduction in healthcare revenue due to an amended agreement with Eisai. The sales contracts executed totaled $20.3 million, up 86% from the previous year, adding $12.4 million to the forecasted FY '25 revenue. Cogstate achieved a gross margin improvement to 61%, while the EBIT margin rose by 11 points compared to the previous year. Profit before tax surged by 150% to $5.2 million, with a positive operating cash flow of $5 million, leading to a closing cash balance of $34.2 million. The guidance for the second half of FY '25 indicates consistent revenue and margin metrics with the first half, with potential revenue upside contingent on sales contract execution. The company continues to invest in technological advancements and channel partnerships, notably with Medidata, to drive future growth and efficiency.

Cogstate Ltd Financial Statement Overview

Summary
Cogstate Ltd presents a solid financial position with substantial revenue growth and profitability metrics. The company's conservative leverage and strong equity base enhance its stability. While cash flow generation is positive, addressing its volatility will be crucial for sustained financial health. Overall, Cogstate Ltd is well-positioned in its industry but should focus on maintaining consistent cash flow growth.
Income Statement
78
Positive
Cogstate Ltd has shown a commendable revenue growth rate over the recent years, with a notable increase from 2023 to 2024. The company maintains a healthy gross profit margin, indicating efficient cost management. However, the net profit margin has faced slight fluctuations, reflecting potential volatility in net income. The EBIT and EBITDA margins are strong, suggesting robust core business profitability.
Balance Sheet
82
Very Positive
The company exhibits a healthy balance sheet with a low debt-to-equity ratio, underscoring a conservative leverage approach. The equity ratio is strong, indicating a well-capitalized structure with substantial equity relative to assets. Return on Equity (ROE) is positive, highlighting effective use of shareholder funds to generate profits.
Cash Flow
70
Positive
Cogstate Ltd demonstrates positive operating cash flow and free cash flow, showing effective cash generation from operations. However, the free cash flow growth rate has been inconsistent, suggesting some volatility in cash generation. The ratios of operating and free cash flow to net income reveal efficient cash conversion, though improvements could bolster financial flexibility.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue66.27M60.14M62.03M43.82M33.97M
Gross Profit37.60M12.29M21.63M10.40M1.96M
EBITDA9.90M8.46M18.07M8.21M-1.22M
Net Income5.45M5.30M10.37M7.02M-2.92M
Balance Sheet
Total Assets57.84M81.22M84.99M68.44M46.36M
Cash, Cash Equivalents and Short-Term Investments45.11M43.08M44.50M31.49M15.00M
Total Debt672.72K569.21K2.05M2.32M7.34M
Total Liabilities25.33M24.60M37.12M39.43M23.86M
Stockholders Equity40.92M56.62M47.88M29.02M22.49M
Cash Flow
Free Cash Flow7.12M-1.53M8.54M17.24M-3.57M
Operating Cash Flow10.00M1.76M13.45M21.61M1.11M
Investing Cash Flow-1.68M-3.29M-4.91M-3.52M-4.24M
Financing Cash Flow-4.91M-1.33M1.05M-246.11K13.74M

Cogstate Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.82
Price Trends
50DMA
1.47
Positive
100DMA
1.42
Positive
200DMA
1.24
Positive
Market Momentum
MACD
0.08
Negative
RSI
67.16
Neutral
STOCH
73.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CGS, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.47, and above the 200-day MA of 1.24, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 67.16 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CGS.

Cogstate Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCGS
73
Outperform
$308.99M28.0017.87%18.30%35.70%
AUMDR
60
Neutral
AU$46.89M110.00-8.34%-5.27%50.29%
AUPCK
55
Neutral
AU$71.84M-457.46%21.93%10.34%
AUALC
53
Neutral
AU$161.15M-5.63%-11.96%7.50%
50
Neutral
AU$2.58B3.39-57.47%2.93%36.73%13.67%
AUSHG
48
Neutral
AU$102.58M
AUIME
46
Neutral
AU$13.68M-17.24%34.47%41.83%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CGS
Cogstate Ltd
1.82
0.66
56.90%
AU:MDR
MedAdvisor Limited
0.08
-0.47
-85.45%
AU:SHG
Singular Health Group Ltd
0.34
0.24
240.00%
AU:ALC
Alcidion Group Limited
0.12
0.07
140.00%
AU:IME
ImExHS Limited
0.26
-0.22
-45.83%
AU:PCK
PainChek Ltd
0.04
0.00
0.00%

Cogstate Ltd Corporate Events

Cogstate Limited Announces Director’s Change in Securities Interest
Jul 9, 2025

Cogstate Limited has announced a change in the director’s interest in securities, specifically involving Bradley O’Connor. The change includes the acquisition of 850,500 ordinary shares through the exercise of employee options, resulting in a total of 5,388,929 ordinary shares held by the director. This adjustment reflects a strategic move in the company’s governance, potentially impacting stakeholder perceptions and the company’s market positioning.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Issues New Securities to Boost Market Presence
Jul 9, 2025

Cogstate Ltd has announced the issuance of 850,500 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) as of July 9, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital for future growth, signaling a positive step for stakeholders and investors.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Updates Securities Trading Policy
Jun 30, 2025

Cogstate Ltd has updated its Securities Trading Policy, as announced by the Board of Directors. This revision aligns with ASX Listing Rule 12.10 and reflects the company’s commitment to maintaining robust governance practices. The update is part of Cogstate’s ongoing efforts to enhance its operational framework, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Upgrades FY25 Financial Guidance Amid Strong Performance
Jun 23, 2025

Cogstate Ltd has upgraded its financial guidance for the fiscal year ending June 30, 2025, citing strong performance and an improved outlook. The company anticipates a significant revenue increase of 20% to 24% compared to the previous year, with full-year revenue expected to reach between $52 million and $54 million. Profit before tax is also projected to rise substantially, with an improvement of 69% to 97% over the prior year. This positive financial outlook reflects Cogstate’s strengthened position in the neuroscience technology industry, potentially benefiting stakeholders and enhancing its market presence.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Launches Investor Insights Series with Focus on CNS Research
Jun 23, 2025

Cogstate Ltd announced its first webinar in the Investor Insights Series, highlighting its partnership with Medidata to drive innovation in Central Nervous System (CNS) research. This collaboration aims to enhance clinical trial outcomes through Medidata’s advanced platform and Cogstate’s expertise in cognitive assessment, benefiting sponsors, researchers, and patients. The series is designed to expand investor engagement and understanding of Cogstate’s role in CNS research, with future webinars focusing on Alzheimer’s breakthroughs and the company’s central position in supporting clinical trials and commercialization.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Announces New Securities Quotation on ASX
Jun 22, 2025

Cogstate Ltd has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). The company is set to quote a total of 148,220 ordinary fully paid securities, with various issue dates in May and June 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase liquidity for its stakeholders.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Announces Cessation of Securities
Jun 22, 2025

Cogstate Ltd announced the cessation of certain securities, specifically performance rights, due to the lapse of conditional rights that were not satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, as it reflects adjustments in the company’s securities management.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Launches InvestorHub to Boost Engagement and Drive CNS Research Innovation
Jun 12, 2025

Cogstate Ltd has launched a new InvestorHub to enhance shareholder engagement and provide strategic insights and updates. This initiative positions Cogstate to capitalize on growth opportunities in CNS disease research, leveraging its partnership with Medidata to drive innovation in clinical trials. The InvestorHub will also host the Investor Insight Series, featuring events to broaden investor reach and highlight collaborations that improve trial outcomes.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Increase in Substantial Shareholder’s Voting Power at Cogstate Limited
Jun 11, 2025

Cogstate Limited, a company listed on the Australian Securities Exchange (ASX), has experienced a change in the interests of a substantial shareholder. Australian Ethical Investment Limited has increased its voting power in Cogstate from 9.63% to 10.64%, indicating a growing interest and potential influence in the company’s decision-making processes.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.45 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Announces Retirement of Long-Standing Non-Executive Director
May 20, 2025

Cogstate Ltd announced the retirement of Mr. Richard van den Broek as a non-executive director, who has been with the company since 2010 and was its first USA-based non-executive director. Mr. van den Broek, a former healthcare analyst and experienced investor in the pharma/biotech market, has significantly contributed to the company through his knowledge of drug development pipelines and industry trends. His departure comes at a time when Cogstate is experiencing exciting technological advancements in cognitive measurement, and he will remain a shareholder and advisor to the company.

The most recent analyst rating on (AU:CGS) stock is a Buy with a A$1.80 price target. To see the full list of analyst forecasts on Cogstate Ltd stock, see the AU:CGS Stock Forecast page.

Cogstate Ltd Updates on Buy-Back Program
May 8, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program, with a total of 210,288 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 5,571,816 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting a proactive approach in managing its financial resources.

Cogstate Ltd Updates on Market Buy-Back Program
May 7, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 5,571,816 securities, including 56,526 on the previous day. This buy-back initiative is part of Cogstate’s strategy to manage its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Buy-Back Program
May 6, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program. As of May 7, 2025, the company has repurchased a total of 5,515,290 ordinary fully paid securities, including 92,427 securities bought back on the previous day. This buy-back initiative is part of Cogstate’s strategy to manage its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Share Buy-Back Progress
May 4, 2025

Cogstate Ltd has announced an update on its ongoing on-market buy-back program, indicating the purchase of 118,642 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 5,278,873. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Ongoing Share Buy-Back Program
May 1, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of the latest notification, the company has repurchased a total of 5,278,873 securities, indicating a strategic move to consolidate its share capital, potentially enhancing shareholder value and market positioning.

Cogstate Ltd Updates on Share Buy-Back Progress
Apr 30, 2025

Cogstate Ltd has announced an update on its ongoing share buy-back program, revealing that a total of 5,204,556 securities have been bought back prior to the previous day, with an additional 27,844 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Cogstate Ltd Expands Securities Offering on ASX
Apr 30, 2025

Cogstate Ltd has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). The company is set to quote a total of 404,200 ordinary fully paid securities, with issue dates on April 23 and April 28, 2025. This move indicates an expansion in their securities offerings, which could potentially enhance liquidity and investor interest in the company.

Cogstate Ltd Updates on Market Buy-Back Progress
Apr 28, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of April 29, 2025, the company has repurchased a total of 5,204,556 securities, including 138,939 securities bought back on the previous day. This buy-back initiative reflects Cogstate’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Share Buy-Back Progress
Apr 23, 2025

Cogstate Ltd has announced an update regarding its ongoing buy-back of ordinary fully paid securities, identified by the ASX security code CGS. The company has been actively buying back shares, with a total of 4,803,452 securities bought back before the previous day and an additional 262,165 securities bought back on the previous day. This buy-back activity is part of Cogstate’s strategy to manage its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Ongoing Buy-Back Program
Apr 21, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program. As of April 22, 2025, the company has bought back a total of 4,772,452 ordinary fully paid securities, with 3,341 securities acquired on the previous day. This buy-back initiative reflects Cogstate’s strategy to optimize its capital structure and potentially enhance shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025