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Cogstate Ltd (AU:CGS)
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Cogstate Ltd (CGS) AI Stock Analysis

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AU:CGS

Cogstate Ltd

(Sydney:CGS)

Rating:72Outperform
Price Target:
AU$2.00
▲(12.36% Upside)
Cogstate Ltd's strong earnings call performance and technical indicators are the most significant factors driving the score. While financial performance shows profitability and stability, challenges in revenue and cash flow growth are concerns. The valuation is reasonable, and the company's strategic initiatives are promising for future growth.

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:Aug 21, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
Cogstate reported strong financial performance with significant revenue and profit growth. The company is expanding its market reach and capabilities through strategic partnerships and product innovations, particularly with its partnership with Medidata and the development of AI-powered products. However, there are challenges such as a decline in healthcare revenue and potential margin pressure due to increased investments.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Cogstate reported a total revenue of $53.1 million for the year, up 22% from the previous year. Clinical Trials revenue increased by 28% to $50.6 million. Profit before tax rose by 96% to $13.9 million, and profit after tax increased by 86% to $10.1 million.
High Margins and Cash Flow
The company achieved a gross margin of 61%, an EBITDA margin of 30%, and an EBIT margin of 25%. Operating cash inflow was $11.5 million, and the cash balance at the end of the financial year was $35.6 million.
Maiden Dividend Announcement
Cogstate declared its first fully franked dividend of AUD 0.02 per ordinary share. The company targets an annual dividend payout ratio between 20% and 50% of net profit after tax.
Expansion and New Contracts
The company signed $41.3 million worth of contracts for the June '25 financial year, up 53% from the previous year. An additional $14.1 million worth of contracts were signed in the first few weeks of FY '26.
Partnership with Medidata
Cogstate's partnership with Medidata has led to seven studies being jointly awarded, a strong sales pipeline with 42 open opportunities, and increased reach into CNS indications.
AI Development and Market Expansion
Cogstate is set to launch its first AI-powered products in FY '26 to support further automation and scalability. The company is also expanding into psychiatric and mood disorders.
Negative Updates
Decline in Healthcare Revenue
Healthcare revenue declined due to the renegotiation of the Eisai global licensing agreement, impacting the overall revenue growth.
Reduction in Full-Time Employees
The number of full-time employees decreased from 167 at June '24 to 159 at June '25, highlighting efficiency but also potential strain on resources.
Potential Margin Pressure
There is a possibility of a small decrease in margins from FY '25 to FY '26 due to increased investment in growth and expansion efforts.
Company Guidance
In the recent call, Cogstate provided a comprehensive overview of its financial performance and strategic direction for the fiscal year 2025. The company reported a total revenue of $53.1 million, marking a 22% increase from the previous year, with Clinical Trials revenue specifically growing by 28% to $50.6 million. Profit before tax rose by 96% to $13.9 million, while profit after tax increased by 86% to $10.1 million. Cogstate also achieved a gross margin of 61%, an EBITDA margin of 30%, and an EBIT margin of 25%. The company noted an operating cash inflow of $11.5 million and ended the year with a cash balance of $35.6 million, even after a $4.8 million share buyback. Looking ahead, Cogstate highlighted several growth catalysts, including its partnership with Medidata, the launch of AI-powered products, and expansion into psychiatric and mood disorders. The company also declared its first fully franked dividend of AUD 0.02 per share.

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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue84.63M50.81M66.27M60.14M62.03M43.82M
Gross Profit42.32M30.69M37.60M12.29M21.63M10.40M
EBITDA26.58M16.93M9.90M8.46M18.07M8.21M
Net Income16.15M10.14M5.45M5.30M10.37M7.02M
Balance Sheet
Total Assets64.77M64.77M57.84M81.22M84.99M68.44M
Cash, Cash Equivalents and Short-Term Investments35.56M35.56M45.11M43.08M44.50M31.49M
Total Debt469.92K469.92K672.72K569.21K2.05M2.32M
Total Liabilities16.88M16.88M25.33M24.60M37.12M39.43M
Stockholders Equity47.90M47.90M40.92M56.62M47.88M29.02M
Cash Flow
Free Cash Flow18.91M8.40M7.12M-1.53M8.54M17.24M
Operating Cash Flow19.40M11.48M10.00M1.76M13.45M21.61M
Investing Cash Flow-4.85M-2.24M-1.68M-3.29M-4.91M-3.52M
Financing Cash Flow-5.98M-3.79M-4.91M-1.33M1.05M-246.11K

Cogstate Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.78
Price Trends
50DMA
1.71
Positive
100DMA
1.52
Positive
200DMA
1.36
Positive
Market Momentum
MACD
0.02
Negative
RSI
57.60
Neutral
STOCH
40.79
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 1.78 is above the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.71, and above the 200-day MA of 1.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$295.08M18.9622.84%1.18%21.47%89.09%
56
Neutral
AU$30.01M110.00-253.44%-48.41%-6520.00%
55
Neutral
AU$86.56M-8647.54%25.98%21.43%
53
Neutral
AU$122.21M75.00-5.63%10.06%
51
Neutral
$7.91B-0.36-41.70%2.23%23.45%-1.86%
47
Neutral
AU$12.07M-27.84%6.77%-8.45%
40
Underperform
AU$103.52M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CGS
Cogstate Ltd
1.79
0.93
108.77%
AU:MDR
MedAdvisor Limited
0.05
-0.29
-85.29%
AU:SHG
Singular Health Group Ltd
0.32
0.24
300.00%
AU:ALC
Alcidion Group Limited
0.09
0.03
50.00%
AU:IME
ImExHS Limited
0.25
-0.22
-46.81%
AU:PCK
PainChek Ltd
0.04
0.01
33.33%

Cogstate Ltd Corporate Events

Cogstate Ltd Announces FY2025 Results Webinar and Alzheimer’s Breakthroughs Discussion
Jul 21, 2025

Cogstate Ltd announced it will host its Financial Year 2025 Results webinar and a separate webinar on Alzheimer’s breakthroughs, highlighting its role in supporting clinical trials and commercialization in Alzheimer’s disease therapeutics. These events underscore Cogstate’s strategic positioning in the neuroscience technology industry, particularly in advancing Alzheimer’s disease drug development, which could have significant implications for stakeholders involved in biopharmaceutical research and healthcare.

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 Corrects Director’s Interest Notice
Jul 21, 2025

Cogstate Ltd announced a correction to a previously released Change in Director’s Interest Notice for CEO Bradley O’Connor, rectifying a typographical error in the number of securities held. The corrected notice reflects an accurate total of 5,338,929 securities. This amendment ensures transparency and accuracy in the company’s disclosures, maintaining trust with stakeholders and compliance with ASX regulations.

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 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.

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: Sep 03, 2025