Cambridge Cognition Holdings (COG) AI Stock Analysis

• Market Cap: £13.73M
• Dividend Yield: N/A
• Average Volume (3M): 32.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -30.77%
• EPS Growth: -6.97%
• Country: UK
• Employees: 119
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.02
• Shares Outstanding: 46,629,700
• 10 Day Avg. Volume: 24,264
• 30 Day Avg. Volume: 32,004
• PEG Ratio: 0.15
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -4.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 32.00p ▲(8.47% Upside)

Cambridge Cognition Holdings faces significant financial and operational challenges, with declining revenue and negative profitability metrics. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to ongoing losses. However, recent corporate events, including strategic board appointments and share capital expansion, provide a positive outlook for future growth and market presence.

Positive Factors

Product Innovation

Cambridge Cognition's innovative CANTAB suite positions it strongly in the cognitive assessment market, providing a durable competitive edge.

Strategic Partnerships

Strategic partnerships enhance product offerings and market reach, fostering sustained earnings growth and industry influence.

Gross Profit Margins

Strong gross profit margins indicate efficient cost management and pricing power, supporting long-term profitability potential.

Negative Factors

Revenue Decline

The declining revenue trend poses a challenge to growth, potentially impacting market position and long-term financial health.

Negative Cash Flow

Negative cash flow highlights liquidity issues, necessitating strategic cash management to ensure operational sustainability.

High Leverage

High leverage can strain financial flexibility, increasing risk and potentially limiting growth opportunities in the long term.

Cambridge Cognition Holdings Business Overview & Revenue Model

Company Description

Cambridge Cognition Holdings (COG) is a leading developer of digital solutions for cognitive assessment and neuropsychological testing. The company specializes in creating innovative software tools that enable researchers and clinicians to measure cognitive function and mental health in various populations, including those with neurological disorders and psychiatric conditions. Its core products include CANTAB, a suite of cognitive tests that leverage technology to provide accurate and reliable assessments, and other related services that support clinical trials and research in the life sciences sector.

How the Company Makes Money

Cambridge Cognition generates revenue primarily through the sale of its software products and licensing agreements. The company earns income by providing its CANTAB assessments to clinical and academic institutions, facilitating cognitive testing for research studies and clinical trials. Key revenue streams include direct sales of software licenses, subscription fees for access to its digital platforms, and fees for training and support services. Additionally, Cambridge Cognition often partners with pharmaceutical companies and research organizations, which may involve collaborations on clinical trials, thereby creating further revenue opportunities. The company also benefits from grants and funding obtained for research and development initiatives, augmenting its earnings potential.

Cambridge Cognition Holdings Financial Statement Overview

Summary

Cambridge Cognition Holdings faces operational and financial challenges, evidenced by declining revenue and negative profitability metrics. While improvements in equity levels suggest enhanced financial stability, high leverage and negative cash flows pose liquidity risks. The company needs to address its operational inefficiencies to achieve sustainable growth and profitability.

Income Statement

The company has shown a fluctuating revenue trajectory, with revenue decreasing from £13.52M in 2023 to £10.34M in 2024. Despite experiencing growth in previous years, the recent decline poses a concern. Gross profit margins remain relatively strong at 81.1% in 2024, but negative EBIT and net profit margins indicate ongoing operational challenges, with EBIT margin at -11.3% and net profit margin at -17.3% in 2024.

Balance Sheet

Cambridge Cognition Holdings has improved its equity from a negative position in 2019 to a positive £3.36M in 2024, indicating strengthening financial stability. However, a high debt-to-equity ratio of 0.57 suggests moderate leverage. The equity ratio stands at 25.8%, reflecting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow situation reveals significant challenges, with a negative operating cash flow of £-3.09M in 2024 and free cash flow deteriorating from £1.49M in 2022 to £-3.09M in 2024. This decline in free cash flow growth rate indicates potential liquidity issues. Operating cash flow to net income ratio is negative due to losses, highlighting the need for strategic cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.05M	10.34M	13.52M	12.61M	10.09M	6.74M
Gross Profit	7.25M	8.39M	10.80M	9.32M	8.08M	5.42M
EBITDA	-563.00K	-542.00K	-2.62M	-514.00K	412.00K	-502.00K
Net Income	-1.67M	-1.78M	-3.51M	-409.00K	450.00K	-438.00K
Balance Sheet
Total Assets	11.73M	13.03M	14.23M	15.11M	12.54M	6.26M
Cash, Cash Equivalents and Short-Term Investments	428.00K	1.30M	3.23M	8.32M	6.81M	3.05M
Total Debt	1.48M	1.91M	2.56M	18.00K	18.00K	98.00K
Total Liabilities	9.40M	9.67M	12.95M	15.01M	11.91M	6.21M
Stockholders Equity	2.33M	3.36M	1.28M	95.00K	632.00K	57.00K
Cash Flow
Free Cash Flow	-1.76M	-3.09M	-5.00M	1.49M	3.88M	972.00K
Operating Cash Flow	-1.75M	-3.08M	-4.97M	1.68M	3.93M	1.01M
Investing Cash Flow	30.00K	50.00K	-3.02M	-189.00K	-105.00K	-42.00K
Financing Cash Flow	-1.15M	1.13M	2.88M	-132.00K	-86.00K	1.16M

Cambridge Cognition Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COG, the sentiment is Negative. The current price of 29.5 is below the 20-day moving average (MA) of 30.70, below the 50-day MA of 32.45, and below the 200-day MA of 34.08, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 14.26 is Positive, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:COG.

Cambridge Cognition Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IXI	58 Neutral	£10.89M	-6.32	-15.57%	―	13.32%	55.07%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
COG	51 Neutral	£13.73M	-7.39	-68.57%	―	-30.77%	-6.97%
PRM	50 Neutral	£6.66M	-2.00	―	―	12.19%	18.12%

Cambridge Cognition Holdings Corporate Events

Cambridge Cognition Appoints New Auditor to Enhance Financial Oversight

Cambridge Cognition Holdings has appointed Cooper Parry Group Limited as its new external auditor following a competitive tender process, replacing Crowe UK LLP. This change is part of the company’s efforts to ensure robust financial oversight and is subject to shareholder approval at the 2026 Annual General Meeting, potentially impacting stakeholder confidence in the company’s governance.

Cambridge Cognition Announces Key Board Appointments to Drive Growth

Cambridge Cognition Holdings has announced significant changes to its board of directors, appointing Rob Baker as CEO and Ronald Openshaw as CFO. These appointments are part of the company’s ongoing growth strategy, with Baker bringing extensive operational and sales experience from Amazon, and Openshaw contributing his financial expertise from previous roles in healthcare investment banking. Additionally, Nick Rodgers is set to become the Chair designate, bringing his governance knowledge from previous leadership roles in the health technology sector. The company is also planning to recruit a new non-executive director to further strengthen its board.

Cambridge Cognition Expands Share Capital to Boost Market Presence

Cambridge Cognition Holdings has issued 589,287 new ordinary shares following the exercise of share options, increasing its total to 46,629,700 shares. This move is part of the company’s strategy to enhance its market presence and shareholder value, aligning with its focus on expanding its digital health products in the brain health sector.