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Cogstate Ltd
(Sydney:CGS)
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Rating:77Outperform
Price Target:
AU$3.50
▲(14.38% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by strong underlying fundamentals (especially the low-risk balance sheet and solid FY’26 profitability) and a positive earnings outlook supported by a much larger contracted revenue base and management’s margin targets. Technicals are supportive with price above key moving averages, but valuation is the main constraint given the higher P/E and modest yield.
Positive Factors
Contracted revenue visibility
The larger contracted revenue base provides stronger forward visibility than relying solely on new bookings. It supports FY'27 planning, reduces demand uncertainty and gives management a foundation for sustaining growth over the next several reporting periods.
Negative Factors
Uneven cash conversion
Cash generation has not been as consistent as reported earnings, indicating working-capital or timing effects. Persistent divergence could limit internally funded investment and make results less predictable even while accounting profitability remains solid.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted revenue visibility
The larger contracted revenue base provides stronger forward visibility than relying solely on new bookings. It supports FY'27 planning, reduces demand uncertainty and gives management a foundation for sustaining growth over the next several reporting periods.
Read all positive factors
Cogstate Ltd (CGS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$530.83M
Dividend Yield1.94%
Average Volume (3M)523.57K
Price to Earnings (P/E)32.0
Beta (1Y)0.14
Revenue Growth6.95%
EPS Growth10.77%
CountryAU
Employees160
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding171,791,020
10 Day Avg. Volume396,174
30 Day Avg. Volume523,573
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)8.01
Price to Sales (P/S)7.79
P/FCF Ratio50.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.43Price Target Upside11.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$73.10M
Cogstate Ltd Business Overview & Revenue Model
Company Description
Melbourne, Australia-based Cogstate Limited, established in 1999, is a neuroscience technology company specializing in computerized cognitive assessments and digital solutions for clinical outcome evaluations. Its comprehensive suite of cognitive ...
How the Company Makes Money
Cogstate makes money primarily by providing its cognitive assessment technologies and related services to organizations that need standardized, repeatable measurement of cognition and symptoms. The company’s key revenue stream is typically busines...
Cogstate Ltd Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call communicated strong, diversified top-line growth, record sales and a materially expanded contracted revenue base, backed by improving second-half margins and completed AI products—positioning the business for continued growth. Management acknowledged near-term margin pressure from purposeful capability investments, conversion timing risk for contracted revenue, a small FX tailwind that may not recur, and dependence on nascent channel partnerships. On balance, the positive operational momentum, robust pipeline and clear technology roadmap outweigh the manageable short-term risks.Positive Updates
Record Financial Performance and Profitability
FY'26 revenue just shy of $61.0M (up 15% YoY); profit before tax up 16%; net profit after tax up 17%. EBITDA margin 30% and EBIT margin 25% for the year. Cash balance ~ $35M and no debt. Declared dividend $0.04 per share (up from $0.02 prior year; payout ratio 40%).
Negative Updates
Gross Margin Compression Year-on-Year
Reported gross margin fell from 61% to 58% YoY (a 3 percentage point decline). Management attributes this to intentional investment in capabilities ahead of growth, though margin recovery was seen in H2.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Financial Performance and Profitability
FY'26 revenue just shy of $61.0M (up 15% YoY); profit before tax up 16%; net profit after tax up 17%. EBITDA margin 30% and EBIT margin 25% for the year. Cash balance ~ $35M and no debt. Declared dividend $0.04 per share (up from $0.02 prior year; payout ratio 40%).
Read all positive updates
Company Guidance
Guidance for FY'27 is that Cogstate starts the year with $118.5m of contracted future revenue (up 54% year‑on‑year), of which $48.3m is expected to be recognized in FY'27 (including $46.1m clinical trials revenue and $2.2m healthcare), with year‑2 and year‑3 locked‑in revenue rising to $29.1m and $18.4m respectively; management expects FY'27 to show a second‑half bias (June half stronger than Dec half) and to maintain the FY'26 EBITDA margin (~30%) despite planned technology and AI investment (a predominantly capital, two‑year build of an AI operations platform), while continuing disciplined capital allocation (cash ~$35m, no debt, ongoing opportunistic share buyback, and a declared dividend of $0.04/share up from $0.02 with a 40% payout ratio within a 20–50% target); this outlook is underpinned by FY'26 metrics including ~$61m revenue (+15% YoY), $89m of sales (up 116%), 90 new trials (vs 35), 171 active trials (vs 110), FY'26 gross margin 58% (H1 53% → H2 62%), EBIT ~25% (H1 → H2 operating leverage supported EBITDA 30%), profit before tax +16% and NPAT +17%, with ~40% of new sales via channel partners.Cogstate Ltd Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 59.87M | 33.29M | 43.43M | 39.94M | 44.98M |
| Gross Profit | 20.24M | 20.11M | 24.71M | 8.16M | 14.87M |
| EBITDA | 15.51M | 11.09M | 6.60M | 5.69M | 13.11M |
| Net Income | 12.16M | 6.65M | 3.63M | 3.52M | 7.13M |
Balance Sheet | |||||
| Total Assets | 78.03M | 64.77M | 57.84M | 53.94M | 58.44M |
| Cash, Cash Equivalents and Short-Term Investments | 34.77M | 35.56M | 30.08M | 28.61M | 30.59M |
| Total Debt | 359.02K | 638.90K | 672.72K | 378.01K | 1.41M |
| Total Liabilities | 19.78M | 16.88M | 16.89M | 16.34M | 25.52M |
| Stockholders Equity | 58.25M | 47.90M | 27.29M | 37.60M | 32.92M |
Cash Flow | |||||
| Free Cash Flow | 9.17M | 8.40M | 4.75M | -1.01M | 5.87M |
| Operating Cash Flow | 9.69M | 11.48M | 5.78M | 1.17M | 9.25M |
| Investing Cash Flow | -6.45M | -2.24M | -1.12M | -1.68M | -3.53M |
| Financing Cash Flow | -4.04M | -3.79M | -3.22M | -883.51K | 760.36K |
Cogstate Ltd Technical Analysis
Positive
3.06
Price Trends
2.76
Positive
2.64
Positive
2.44
Positive
Market Momentum
0.12
Negative
63.27
Neutral
38.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CGS, the sentiment is Positive. The current price of 3.06 is above the 20-day moving average (MA) of 2.94, above the 50-day MA of 2.76, and above the 200-day MA of 2.44, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.27 is Neutral, neither overbought nor oversold. The STOCH value of 38.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CGS.
Cogstate Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$530.83M | 32.03 | 21.61% | 1.94% | 6.95% | 10.77% | |
61 Neutral | AU$141.73M | 61.76 | 2.53% | ― | 26.61% | 41.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | AU$4.30M | -1.67 | -150.85% | ― | 23078.58% | -139.00% | |
49 Neutral | AU$35.44M | -1.91 | -58.13% | ― | 2.08% | -195.31% | |
43 Neutral | AU$47.31M | -4.22 | -18.10% | ― | ― | ― | |
43 Neutral | AU$22.99M | -2.53 | -1688.04% | ― | 11.45% | 0.69% |
* Healthcare Sector Average
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Cogstate Ltd Corporate Events
Cogstate Unveils FY26 Results and Outlook in Investor Briefing
Aug 17, 2026
Cogstate Ltd has released an investor briefing outlining its financial results for the year ended 30 June 2026 and providing commentary on its business and financial outlook. The company will host a live webcast and QA with senior executives, with...
Cogstate posts record FY26 results and deepens AI-enabled CNS trial platform
Aug 17, 2026
Cogstate Ltd is a science-led clinical trial endpoint specialist focused on central nervous system disorders, delivering technology-enabled assessment, central rating and data quality services to pharmaceutical and biotech sponsors. Its diversifie...
Cogstate lifts profit and doubles dividend as clinical trials revenue surges
Aug 17, 2026
Cogstate Ltd, a provider of digital cognitive assessment solutions for global clinical trials and healthcare, continues to generate most of its revenue from the clinical trials segment, with healthcare contributing a smaller but high-margin share....
Cogstate Sets Board Nomination Deadline Ahead of 2026 AGM
Aug 10, 2026
Cogstate has scheduled its 2026 Annual General Meeting for 15 October, setting a formal timetable for governance activities and board elections. Under relevant listing rules and the company’s constitution, nominations for directors must be l...
Cogstate Updates Market on Lapse of Options and Performance Rights
Jul 10, 2026
Cogstate Ltd has notified the market of the cessation of several classes of securities, including 60,000 options expiring on 31 August 2026 that lapsed unexercised on 30 June 2026. The company also reported the lapse of a total of 396,370 performa...
Cogstate Seeks ASX Quotation for Additional Ordinary Shares
Jul 10, 2026
Cogstate Ltd has applied to the ASX for quotation of 35,000 ordinary fully paid shares, to be issued on 19 June 2026. The relatively small issuance reflects routine capital management activity and is unlikely to materially affect the company’...
Cogstate Posts Record FY26 Sales and Expands Contracted Revenue Pipeline
Jul 7, 2026
Cogstate reported a record US$89.0 million in net sales contracts for the year to 30 June 2026, more than doubling the prior year as demand for its CNS measurement solutions in clinical trials surged. The company’s contracted future revenue ...
Cogstate targets sustainable growth via expanded clinical trial indications and services
Jun 9, 2026
Cogstate Ltd will host an investor webinar titled “Unlocking Sustainable Clinical Trials Growth through Indication and Solution Expansion” to outline momentum and diversification in its Clinical Trials business. The session will highli...
Cogstate Cancels Over 1.1 Million Shares in On-Market Buy-Back
Jun 3, 2026
Cogstate Ltd has cancelled 1,109,662 ordinary fully paid shares through an on-market share buy-back, as notified in its latest capital management announcement. The reduction in issued capital indicates an active approach to managing its share base...
Cogstate to Showcase Clinical Trials Growth Strategy via Investor Webinar
May 31, 2026
Cogstate Ltd, a specialist in CNS endpoint innovation and digital cognitive assessment solutions for both pharmaceutical trials and healthcare providers, focuses on enabling accurate, actionable measurement of cognition to support the development ...
Cogstate Updates Daily On-Market Share Buy-Back Activity
May 27, 2026
Cogstate Ltd has continued its on-market share buy-back program for its ordinary fully paid shares listed on the ASX under code CGS. The company disclosed that, as of the latest notification dated 28 May 2026, a total of 1,772,688 shares had been ...
Cogstate Reshapes Company Secretarial Team, Adds CFO as Joint Secretary
May 22, 2026
Cogstate has reshaped its company secretarial structure, announcing the resignation of joint company secretary Kristi Geddes as she departs to pursue other opportunities. The board expressed appreciation for her contribution and confirmed that lon...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.