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CGN

Cognition HoldingsJSE:CGN Stock Report

Market Cap

R158.2m

7D

6.2%

1Y

16.9%

Updated

21 Oct, 2021

Data

Company Financials
CGN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

CGN Overview

Cognition Holdings Limited, together with its subsidiaries, provides active data exchange, and knowledge creation and management services primarily in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Cognition Holdings
Historical stock prices
Current Share PriceR0.69
52 Week HighR0.57
52 Week LowR0.80
Beta0.37
1 Month Change4.55%
3 Month Change4.55%
1 Year Change16.95%
3 Year Change-40.00%
5 Year Change-48.89%
Change since IPO527.27%

Recent News & Updates

Aug 25
The Returns On Capital At Cognition Holdings (JSE:CGN) Don't Inspire Confidence

The Returns On Capital At Cognition Holdings (JSE:CGN) Don't Inspire Confidence

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

May 06
Here's What's Concerning About Cognition Holdings' (JSE:CGN) Returns On Capital

Here's What's Concerning About Cognition Holdings' (JSE:CGN) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

CGNZA TelecomZA Market
7D6.2%0.6%0.9%
1Y16.9%10.6%19.9%

Return vs Industry: CGN exceeded the ZA Telecom industry which returned 10.6% over the past year.

Return vs Market: CGN underperformed the ZA Market which returned 19.9% over the past year.

Price Volatility

Is CGN's price volatile compared to industry and market?
CGN volatility
CGN Beta0.37
Industry Beta0.45
Market Beta1

Stable Share Price: CGN is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CGN's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a205Mark Smithhttps://www.cognitionholdings.co.za

Cognition Holdings Limited, together with its subsidiaries, provides active data exchange, and knowledge creation and management services primarily in South Africa. The company’s active data exchange services include short message, interactive voice response, Vmail one-on-one marketing, mobi, fulfillment, call center, bespoke, and unstructured supplementary service data services, as well as advertising, promotion, direct marketing, and CRM services; and conference call, IM, email, airtime sales, fax2email, email2fax, corporate fax, airtime sales, and auto receptionist services. It also provides Knowledge 350°, a 15 step business process, which creates an integrated and logical process that assists companies to build databases and to move from segmenting customers to single customer profiles with detailed demographics and psychographics.

Cognition Holdings Fundamentals Summary

How do Cognition Holdings's earnings and revenue compare to its market cap?
CGN fundamental statistics
Market CapR158.20m
Earnings (TTM)R2.06m
Revenue (TTM)R230.56m

76.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGN income statement (TTM)
RevenueR230.56m
Cost of RevenueR31.88m
Gross ProfitR198.68m
ExpensesR196.62m
EarningsR2.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.009
Gross Margin86.17%
Net Profit Margin0.89%
Debt/Equity Ratio0.0%

How did CGN perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGN (ZAR0.69) is trading below our estimate of fair value (ZAR9.55)

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


Price To Earnings Ratio

PE vs Industry: CGN is poor value based on its PE Ratio (76.7x) compared to the African Telecom industry average (7.9x).

PE vs Market: CGN is poor value based on its PE Ratio (76.7x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CGN's PB Ratio (0.7x) is in line with the XF Telecom industry average.


Future Growth

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

9.8%

Forecasted Telecom 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 Cognition Holdings 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.


Past Performance

How has Cognition Holdings performed over the past 5 years?

-45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGN has a large one-off loss of ZAR6.0M impacting its June 30 2021 financial results.

Growing Profit Margin: CGN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CGN's earnings have declined by 45.3% per year over the past 5 years.

Accelerating Growth: CGN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CGN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (29.6%).


Return on Equity

High ROE: CGN's Return on Equity (4.7%) is considered low.


Financial Health

How is Cognition Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CGN's short term assets (ZAR148.2M) exceed its short term liabilities (ZAR49.5M).

Long Term Liabilities: CGN's short term assets (ZAR148.2M) exceed its long term liabilities (ZAR5.7M).


Debt to Equity History and Analysis

Debt Level: CGN is debt free.

Reducing Debt: CGN has no debt compared to 5 years ago when its debt to equity ratio was 1.6%.

Debt Coverage: CGN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CGN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CGN'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 CGN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: CGN is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Mark Smith (63 yo)

no data

Tenure

R3,658,750

Compensation

Mr. Mark Allan Smith, BA, LLB, (Admitted Attorney) is the Chief Executive Officer and Executive Director of Cognition Holdings Limited (a/k/a, FoneWorx Holdings Limited). Mr. Smith served as the Chairman o...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD250.97K) is about average for companies of similar size in the ZA market ($USD283.52K).

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


Board Members

Experienced Board: CGN's board of directors are not considered experienced ( 1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cognition Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Cognition Holdings Limited
  • Ticker: CGN
  • Exchange: JSE
  • Founded: NaN
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R158.198m
  • Shares outstanding: 229.27m
  • Website: https://www.cognitionholdings.co.za

Number of Employees


Location

  • Cognition Holdings Limited
  • Cognition House
  • Cor Bram Fischer Dr & Will Scarlet Rd
  • Randburg
  • Gauteng
  • 2194
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:58
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
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.