ASX:CGS

Stock Analysis Report

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Executive Summary

Cogstate Limited, a cognitive science company, provides computerized cognitive tests for clinical trials, academic research, healthcare, and brain health applications in Australia and internationally.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Cogstate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

CGS

2.3%

AU Healthcare Services

4.8%

AU Market


1 Year Return

26.5%

CGS

19.0%

AU Healthcare Services

-10.6%

AU Market

Return vs Industry: CGS exceeded the Australian Healthcare Services industry which returned 19% over the past year.

Return vs Market: CGS exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

CGSIndustryMarket
7 Day-1.6%2.3%4.8%
30 Day-6.1%10.6%5.5%
90 Day-15.1%32.8%-10.1%
1 Year27.7%26.5%19.5%19.0%-7.0%-10.6%
3 Year-71.8%-72.1%157.6%152.3%10.3%-4.3%
5 Year20.3%19.2%355.6%322.4%28.3%0.7%

Price Volatility Vs. Market

How volatile is Cogstate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cogstate undervalued compared to its fair value and its price relative to the market?

2.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CGS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CGS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CGS is unprofitable, so we can't compare its PE Ratio to the Healthcare Services industry average.

PE vs Market: CGS is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CGS is good value based on its PB Ratio (2.3x) compared to the AU Healthcare Services industry average (4x).


Next Steps

Future Growth

How is Cogstate forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

38.8%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cogstate has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cogstate performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGS is currently unprofitable.

Growing Profit Margin: CGS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CGS is unprofitable, and losses have increased over the past 5 years at a rate of -6.6% per year.

Accelerating Growth: Unable to compare CGS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGS is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (10%).


Return on Equity

High ROE: CGS has a negative Return on Equity (-16.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cogstate's financial position?


Financial Position Analysis

Short Term Liabilities: CGS's short term assets ($14.8M) exceed its short term liabilities ($11.9M).

Long Term Liabilities: CGS's short term assets ($14.8M) exceed its long term liabilities ($2.9M).


Debt to Equity History and Analysis

Debt Level: CGS's debt to equity ratio (5.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CGS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CGS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CGS has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 6.7% each year.


Next Steps

Dividend

What is Cogstate's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CGS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CGS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Brad O'Connor

14.42yrs

Tenure

US$655,042

Compensation

Mr. Bradley O'Connor, also known as Brad, B.Bus, CA, has been the Chief Executive Officer and Managing Director of Cogstate Limited since December 1, 2005 and served as its Chief Financial Officer since Ma ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD655.04K) is above average for companies of similar size in the Australian market ($USD252.51K).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley O'Connor
CEO, MD & Executive Director14.42yrsUS$655.04k3.45% $1.8m
Richard Gleeson
Chief Technology Officer3.17yrsUS$391.34kno data
Paul Maruff
Chief Scientific Officerno dataUS$416.58k0.29% $155.0k
Chris Edgar
Senior Vice President of Clinical Science2.17yrsno datano data
Kenneth Billard
Chief Commercial Officer0.42yrno datano data
Keith Hawkins
Company Secretary0.42yrno datano data
Amy Veroff
Principal Consultantno datano datano data

2.2yrs

Average Tenure

Experienced Management: CGS's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley O'Connor
CEO, MD & Executive Director14.42yrsUS$655.04k3.45% $1.8m
Richard van den Broek
Independent Non-Executive Director9.75yrsUS$64.79k2.53% $1.3m
Martyn Myer
Non-Executive Chairmanno dataUS$101.51k13.88% $7.3m
Ingrid Player
Independent Non-Executive Director0.75yrno data0.079% $41.6k
David Dolby
Independent Non-Executive Director6.42yrsUS$65.15k15.12% $8.0m
Richard Mohs
Independent Non-Executive Director3.33yrsUS$52.98k0.032% $17.1k

6.4yrs

Average Tenure

49.5yo

Average Age

Experienced Board: CGS's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 42.7%.


Top Shareholders

Company Information

Cogstate Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cogstate Limited
  • Ticker: CGS
  • Exchange: ASX
  • Founded: 1999
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: AU$52.745m
  • Shares outstanding: 170.15m
  • Website: https://www.cogstate.com

Number of Employees


Location

  • Cogstate Limited
  • 255 Bourke Street
  • Level 2
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2004
COGZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2004
CGSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2004

Biography

Cogstate Limited, a cognitive science company, provides computerized cognitive tests for clinical trials, academic research, healthcare, and brain health applications in Australia and internationally. The company’s services include scientific consultancy, project management, data management, statistical analysis, and reporting. It operates in three segments: Clinical Trials, Academic Research, and Healthcare. 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 Academic Research segment offers technology and associated services to support international research studies and academic collaborations across various indications, including Alzheimer’s disease, HIV, multiple sclerosis, pediatric and adult oncology, Parkinson’s disease, epilepsy, and schizophrenia. As of June 30, 2019, it had participated in approximately 1,400 academic research studies in approximately 150 indications. The Healthcare segment provides Cognigram, a system for regular and standardized testing to assist in the early detection of cognitive decline. The company serves biopharmaceutical companies, sporting organizations, military, physicians and patients, academic institutions, and public-private partnerships. Cogstate Limited has a license agreement with Eisai Co., Ltd. Cogstate Limited was founded in 1999 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:36
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.