Cogstate Ltd (COGZF) AI Stock Analysis

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Cogstate Ltd (COGZF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$141.80M

Dividend YieldN/A

Average Volume (3M)4.22K

Price to Earnings (P/E)19.7

Beta (1Y)0.38

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees147

SectorHealthcare

Sector Strength41

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)0.02

Shares Outstanding168,778,290

10 Day Avg. Volume150

30 Day Avg. Volume4,218

Financial Highlights & Ratios

PEG Ratio0.54

Price to Book (P/B)3.31

Price to Sales (P/S)0.00

P/FCF Ratio13.72

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$0.98

Price Target Upside15.29% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 Money

Cogstate Ltd Earnings Call Summary

Earnings Call Date:Feb 19, 2025

(Q2-2025)

% Change Since: 8.97%|

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

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

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

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
77.23M	43.43M	60.14M	62.03M	43.82M	33.97M
	Gross Profit
47.73M	14.75M	12.29M	21.63M	10.40M	1.96M
	EBIT
20.48M	6.17M	3.41M	15.09M	5.14M	-4.22M
	EBITDA
17.56M	9.90M	8.46M	18.07M	8.21M	-1.22M
	Net Income Common Stockholders
11.47M	5.45M	5.30M	10.37M	7.02M	-2.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.26M	45.11M	43.08M	44.50M	31.49M	15.00M
	Total Assets
11.70M	57.84M	81.22M	84.99M	68.44M	46.36M
	Total Debt
0.00	672.72K	569.21K	2.05M	2.32M	7.34M
	Net Debt
-4.26M	-44.10M	-12.18M	-15.99M	-15.84M	-7.39M
	Total Liabilities
1.62M	25.33M	24.60M	37.12M	39.43M	23.86M
	Stockholders Equity
10.07M	40.92M	56.62M	47.88M	29.02M	22.49M
Cash Flow		Free Cash Flow
16.88M	7.12M	-1.53M	8.54M	17.24M	-3.57M
	Operating Cash Flow
17.44M	10.00M	1.76M	13.45M	21.61M	1.11M
	Investing Cash Flow
-1.95M	-1.68M	-3.29M	-4.91M	-3.52M	-4.24M
	Financing Cash Flow
-1.59M	-4.91M	-1.33M	1.05M	-246.11K	13.74M

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
COGZF		$141.80M	19.74	17.87%	―	―	―
PCK	55 Neutral	AU$73.68M	―	-457.46%	―	21.93%	10.34%
ALC	54 Neutral	AU$126.24M	―	-5.63%	―	-11.96%	7.50%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
MDR	53 Neutral	AU$51.86M	110.00	-8.34%	―	-5.27%	50.29%
SHG	51 Neutral	AU$99.97M	―		―	―	―
IME	46 Neutral	AU$17.70M	―	-17.24%	―	34.47%	41.83%

* Healthcare Sector Average

Performance Comparison

COGZF

Cogstate Ltd

0.85

0.09

11.84%

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%

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.