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CGS

Cogstate ASX:CGS Stock Report

Last Price

AU$1.73

Market Cap

AU$306.9m

7D

-3.9%

1Y

4.8%

Updated

18 Aug, 2022

Data

Company Financials +
CGS fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance5/6
Financial Health5/6
Dividends0/6

CGS Stock Overview

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

Cogstate Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cogstate
Historical stock prices
Current Share PriceAU$1.73
52 Week HighAU$2.68
52 Week LowAU$1.36
Beta0.15
1 Month Change5.17%
3 Month Change3.59%
1 Year Change4.85%
3 Year Change787.18%
5 Year Change49.14%
Change since IPO246.00%

Recent News & Updates

Jun 30
We Ran A Stock Scan For Earnings Growth And Cogstate (ASX:CGS) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Cogstate (ASX:CGS) Passed With Ease

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

CGSAU Healthcare ServicesAU Market
7D-3.9%1.2%0.7%
1Y4.8%-24.0%-4.8%

Return vs Industry: CGS exceeded the Australian Healthcare Services industry which returned -24% over the past year.

Return vs Market: CGS exceeded the Australian Market which returned -4.8% over the past year.

Price Volatility

Is CGS's price volatile compared to industry and market?
CGS volatility
CGS Average Weekly Movement9.4%
Healthcare Services Industry Average Movement14.2%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: CGS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CGS's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999171Brad O'Connorhttps://www.cogstate.com

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 project management, data management, scientific consulting, statistical analysis, scales procurement, rater training, and monitoring solutions. It operates in Clinical Trials and Healthcare segments.

Cogstate Fundamentals Summary

How do Cogstate's earnings and revenue compare to its market cap?
CGS fundamental statistics
Market CapAU$306.86m
Earnings (TTM)AU$14.12m
Revenue (TTM)AU$60.58m

21.2x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGS income statement (TTM)
RevenueUS$41.91m
Cost of RevenueUS$16.84m
Gross ProfitUS$25.07m
Other ExpensesUS$15.30m
EarningsUS$9.76m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)0.056
Gross Margin59.82%
Net Profit Margin23.30%
Debt/Equity Ratio2.7%

How did CGS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CGS?

Other financial metrics that can be useful for relative valuation.

CGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.5x
Enterprise Value/EBITDA18.2x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does CGS's PE Ratio compare to its peers?

CGS PE Ratio vs Peers
The above table shows the PE ratio for CGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average54x
PME Pro Medicus
148.5x21.3%AU$5.6b
CAJ Capitol Health
24x15.9%AU$332.8m
MVF Monash IVF Group
18x13.6%AU$405.2m
PGC Paragon Care
26.3x39.9%AU$222.3m
CGS Cogstate
21.2x18.7%AU$306.9m

Price-To-Earnings vs Peers: CGS is good value based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (54x).


Price to Earnings Ratio vs Industry

How does CGS's PE Ratio compare vs other companies in the Global Healthcare Services Industry?

Price-To-Earnings vs Industry: CGS is good value based on its Price-To-Earnings Ratio (21.2x) compared to the Global Healthcare Services industry average (40.6x)


Price to Earnings Ratio vs Fair Ratio

What is CGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio32.2x

Price-To-Earnings vs Fair Ratio: CGS is good value based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).


Share Price vs Fair Value

What is the Fair Price of CGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CGS (A$1.73) is trading below our estimate of fair value (A$6.13)

Significantly Below Fair Value: CGS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGS's forecast earnings growth (18.7% per year) is above the savings rate (1.8%).

Earnings vs Market: CGS's earnings (18.7% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: CGS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CGS's revenue (21.4% per year) is forecast to grow faster than the Australian market (6.2% per year).

High Growth Revenue: CGS's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGS's Return on Equity is forecast to be high in 3 years time (23.1%)


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Past Performance

How has Cogstate performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


51.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGS has a large one-off gain of $2.4M impacting its December 31 2021 financial results.

Growing Profit Margin: CGS's current net profit margins (23.3%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: CGS's earnings have grown significantly by 51% per year over the past 5 years.

Accelerating Growth: CGS's earnings growth over the past year (2812.4%) exceeds its 5-year average (51% per year).

Earnings vs Industry: CGS earnings growth over the past year (2812.4%) exceeded the Healthcare Services industry 6.8%.


Return on Equity

High ROE: CGS's Return on Equity (34.7%) is considered high.


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Financial Health

How is Cogstate's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGS's short term assets ($37.2M) exceed its short term liabilities ($15.5M).

Long Term Liabilities: CGS's short term assets ($37.2M) exceed its long term liabilities ($8.5M).


Debt to Equity History and Analysis

Debt Level: CGS has more cash than its total debt.

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

Debt Coverage: CGS's debt is well covered by operating cash flow (541.3%).

Interest Coverage: CGS's interest payments on its debt are well covered by EBIT (187.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CGS has not reported any payouts.


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Management

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

1.8yrs

Average management tenure


CEO

Brad O'Connor

16.67yrs

Tenure

US$1,076,087

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 ($USD1.08M) is above average for companies of similar size in the Australian market ($USD562.45K).

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


Leadership Team

Experienced Management: CGS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CGS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Cogstate Limited
  • Ticker: CGS
  • Exchange: ASX
  • Founded: 1999
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Implied Market Cap: AU$306.862m
  • Shares outstanding: 173.37m
  • Website: https://www.cogstate.com

Number of Employees


Location

  • Cogstate Limited
  • 161 Collins Street
  • Level 2
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.