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Cogstate Ltd (AU:CGS)
:CGS

Cogstate Ltd (CGS) AI Stock Analysis

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AU

Cogstate Ltd

(OTC:CGS)

Rating:71Outperform
Price Target:
AU$1.50
▲(16.28%Upside)
Cogstate Ltd's overall stock score is driven by strong financial performance and positive earnings call outcomes. The company's solid revenue growth and profitability are significant strengths. Technical analysis presents a neutral outlook, while valuation is reasonable. Despite some challenges, the growth prospects and financial stability position Cogstate well in its industry.

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 makes money primarily through the sale of its cognitive assessment tools to pharmaceutical companies, healthcare providers, and researchers. The company's key revenue streams include licensing its technology for use in clinical trials, which is a significant market given the need for cognitive testing in drug development, especially for neurological and psychiatric disorders. Additionally, Cogstate generates revenue from its electronic clinical outcome assessment (eCOA) solutions, which are used to collect clinical trial data. Partnerships with pharmaceutical companies and other strategic collaborations also contribute to its earnings by expanding the reach and application of its cognitive testing solutions.

Cogstate Ltd Earnings Call Summary

Earnings Call Date:Feb 19, 2025
(Q2-2025)
|
% Change Since: 4.03%|
Next Earnings Date:Aug 26, 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 strong profitability metrics. The company's conservative leverage and strong equity base enhance its stability. However, cash flow volatility needs addressing for sustained financial health.
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
77.23M43.43M60.14M62.03M43.82M33.97M
Gross Profit
47.73M14.75M12.29M21.63M10.40M1.96M
EBIT
20.48M6.17M3.41M15.09M5.14M-4.22M
EBITDA
17.56M9.90M8.46M18.07M8.21M-1.22M
Net Income Common Stockholders
11.47M5.45M5.30M10.37M7.02M-2.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.26M45.11M43.08M44.50M31.49M15.00M
Total Assets
11.70M57.84M81.22M84.99M68.44M46.36M
Total Debt
0.00672.72K569.21K2.05M2.32M7.34M
Net Debt
-4.26M-44.10M-12.18M-15.99M-15.84M-7.39M
Total Liabilities
1.62M25.33M24.60M37.12M39.43M23.86M
Stockholders Equity
10.07M40.92M56.62M47.88M29.02M22.49M
Cash FlowFree Cash Flow
16.88M7.12M-1.53M8.54M17.24M-3.57M
Operating Cash Flow
17.44M10.00M1.76M13.45M21.61M1.11M
Investing Cash Flow
-1.95M-1.68M-3.29M-4.91M-3.52M-4.24M
Financing Cash Flow
-1.59M-4.91M-1.33M1.05M-246.11K13.74M

Cogstate Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.29
Price Trends
50DMA
1.33
Negative
100DMA
1.30
Negative
200DMA
1.15
Positive
Market Momentum
MACD
-0.01
Positive
RSI
44.51
Neutral
STOCH
29.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CGS, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.33, and above the 200-day MA of 1.15, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 29.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CGS.

Cogstate Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCGS
71
Outperform
AU$217.72M19.8517.87%18.30%35.70%
AUPCK
55
Neutral
AU$73.68M-457.46%21.93%10.34%
AUALC
54
Neutral
AU$126.24M-5.63%-11.96%7.50%
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
AUMDR
53
Neutral
AU$51.86M110.00-8.34%-5.27%50.29%
AUSHG
51
Neutral
AU$99.97M
AUIME
46
Neutral
AU$17.70M-17.24%34.47%41.83%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CGS
Cogstate Ltd
1.29
0.12
10.26%
AU:MDR
MedAdvisor Limited
0.08
-0.37
-82.22%
AU:SHG
Singular Health Group Ltd
0.36
0.27
300.00%
AU:ALC
Alcidion Group Limited
0.09
0.04
80.00%
AU:IME
ImExHS Limited
0.33
-0.07
-17.50%
AU:PCK
PainChek Ltd
0.04
0.01
33.33%

Cogstate Ltd Corporate Events

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.

Cogstate Ltd Updates on Share Buy-Back Program
Apr 13, 2025

Cogstate Ltd has announced an update on its ongoing share buy-back program, which involves the repurchase of its ordinary fully paid securities. As of April 14, 2025, the company has bought back a total of 4,678,796 securities, with an additional 90,315 securities repurchased 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 Announces Quotation of New Securities on ASX
Apr 9, 2025

Cogstate Ltd has announced the application for quotation of 900,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to expand its capital base, potentially enhancing its market position and providing additional resources for growth and development. The issuance of these securities could have implications for stakeholders, including potential changes in shareholder value and increased investment opportunities.

Cogstate Ltd Updates on Market Buy-Back Progress
Apr 8, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities, with a total of 4,258,563 securities bought back before the previous day and an additional 70,233 securities bought back on the previous day. This buy-back activity is part of Cogstate’s strategy to manage its capital structure, potentially enhancing shareholder value and reflecting confidence in the company’s future prospects.

Cogstate Ltd Updates on Share Buy-Back Progress
Apr 6, 2025

Cogstate Ltd has announced an update regarding its ongoing share buy-back program, reporting the acquisition of 240,253 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 4,018,310. This buy-back initiative is part of Cogstate’s strategy to optimize capital structure and enhance shareholder value, indicating a positive outlook for the company’s financial health and market position.

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

Cogstate Ltd has announced an update on its ongoing share buy-back program, with a total of 3,961,629 securities bought back before the previous day and an additional 32,862 securities purchased on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value, which could have implications for its market positioning and investor relations.

Cogstate Ltd Updates on Ongoing Buy-Back Program
Mar 27, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program. As of March 27, 2025, the company has repurchased a total of 2,926,978 ordinary fully paid securities, with 34,262 bought back on the previous day. This buy-back initiative is part of Cogstate’s strategy to optimize its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Securities Buy-Back Program
Mar 26, 2025

Cogstate Ltd has announced an update regarding its ongoing 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 2,892,716 securities, with 57,094 repurchased 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 Ongoing Share Buy-Back Program
Mar 25, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program. As of March 25, 2025, the company has repurchased a total of 2,835,622 ordinary fully paid securities, with 8,608 bought back on the previous day. This buy-back initiative is part of Cogstate’s strategy to enhance shareholder value and optimize its capital structure.

Cogstate Ltd Updates on Market Buy-Back Program
Mar 23, 2025

Cogstate Ltd has announced an update on its ongoing on-market buy-back program, revealing that a total of 2,785,408 ordinary fully paid securities have been bought back prior to the previous day, with an additional 41,606 securities acquired on the previous day. 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 Share Buy-Back Progress
Mar 19, 2025

Cogstate Ltd has announced an update regarding its ongoing share buy-back program, which involves the repurchase of its ordinary fully paid securities. The latest update reveals that the company bought back 27,323 securities on the previous day, adding to a total of 2,709,068 securities repurchased to date. This buy-back initiative is part of Cogstate’s strategy to manage its capital structure, potentially enhancing shareholder value and signaling confidence in the company’s future prospects.

Cogstate Ltd Updates on Daily Buy-Back Activity
Mar 17, 2025

Cogstate Ltd has announced an update regarding its ongoing buy-back program, specifically detailing the daily buy-back activity. As of March 18, 2025, the company has repurchased a total of 2,517,609 ordinary fully paid securities, including 4,672 securities bought back on the previous day. This buy-back initiative is part of Cogstate’s strategy to optimize its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Ongoing Share Buy-Back Program
Mar 16, 2025

Cogstate Ltd has announced an update on its ongoing on-market buy-back program, with a total of 177,352 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 2,335,585 securities. This buy-back initiative is part of Cogstate’s strategy to optimize its capital structure, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

Cogstate Ltd Updates on Market Buy-Back Program
Mar 12, 2025

Cogstate Ltd has announced an update on its ongoing on-market buy-back program, revealing that a total of 2,309,121 ordinary fully paid securities have been bought back prior to the previous day, with an additional 26,464 securities purchased on the previous day. This buy-back initiative is part of Cogstate’s strategy to optimize its capital structure, potentially enhancing shareholder value and signaling confidence in the company’s financial health.

Cogstate Ltd Updates on Ongoing Buy-Back Program
Mar 11, 2025

Cogstate Ltd has announced an update regarding its ongoing on-market buy-back program. As of March 12, 2025, the company has bought back a total of 2,309,121 ordinary fully paid securities, including 150,847 on the previous day. This buy-back initiative is part of Cogstate’s strategy to optimize its capital structure and potentially enhance shareholder value.

Cogstate Ltd Updates on Ongoing Securities Buy-Back
Mar 10, 2025

Cogstate Ltd has announced a daily update on its ongoing on-market buy-back of ordinary fully paid securities. As of March 11, 2025, the company has bought back a total of 1,913,045 securities, with an additional 245,229 securities purchased on the previous day. This buy-back initiative is part of Cogstate’s strategy to manage its capital structure and potentially enhance shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.