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Cognition Holdings

JSE:CGN
Snowflake Description

Flawless balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CGN
JSE
ZAR170M
Market Cap
  1. Home
  2. ZA
  3. Telecom
Company description

Cognition Holdings Limited, an investment holding company, provides active data exchange, and knowledge creation and management services primarily in South Africa. The last earnings update was 20 days ago. More info.


Add to Portfolio Compare Print
  • Cognition Holdings has significant price volatility in the past 3 months.
CGN Share Price and Events
7 Day Returns
0%
JSE:CGN
1.3%
Africa Telecom
10.1%
ZA Market
1 Year Returns
-35.7%
JSE:CGN
-23.5%
Africa Telecom
-33.6%
ZA Market
CGN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cognition Holdings (CGN) 0% 32.1% 19.4% -35.7% -45.2% -68.9%
Africa Telecom 1.3% -13.9% -17.3% -23.5% -23.5% -20.7%
ZA Market 10.1% -19.3% -29.1% -33.6% -29.1% -31.9%
1 Year Return vs Industry and Market
  • CGN underperformed the Telecom industry which returned -23.5% over the past year.
  • CGN underperformed the Market in South Africa which returned -33.6% over the past year.
Price Volatility
CGN
Industry
5yr Volatility vs Market

Value

 Is Cognition Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cognition Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cognition Holdings.

JSE:CGN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in ZAR ZAR .100000
Payout Ratio Company Filings (2019-12-31) 6753%
Discount Rate (Cost of Equity) See below 15.2%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 8.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:CGN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 8.6%
Equity Risk Premium S&P Global 8.2%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.361 (1 + (1- 28%) (7.13%))
0.571
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 8.6% + (0.8 * 8.23%)
15.18%

Discounted Cash Flow Calculation for JSE:CGN using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Cognition Holdings is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

JSE:CGN Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= ZAR0.1 / (15.18% - 8.6%)
ZAR0.91
JSE:CGN Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR0.91
Current discount Discount to share price of ZAR0.74
= -1 x (ZAR0.74 - ZAR0.91) / ZAR0.91
18.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cognition Holdings is available for.
Intrinsic value
19%
Share price is ZAR0.74 vs Future cash flow value of ZAR0.9089
Current Discount Checks
For Cognition Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cognition Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Cognition Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cognition Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cognition Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:CGN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in ZAR ZAR0.06
JSE:CGN Share Price ** JSE (2020-03-30) in ZAR ZAR0.74
Africa Telecom Industry PE Ratio Median Figure of 11 Publicly-Listed Telecom Companies 7.78x
South Africa Market PE Ratio Median Figure of 202 Publicly-Listed Companies 7.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cognition Holdings.

JSE:CGN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:CGN Share Price ÷ EPS (both in ZAR)

= 0.74 ÷ 0.06

12.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cognition Holdings is overvalued based on earnings compared to the Africa Telecom industry average.
  • Cognition Holdings is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Cognition Holdings's expected growth come at a high price?
Raw Data
JSE:CGN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Global Telecom Industry PEG Ratio Median Figure of 92 Publicly-Listed Telecom Companies 1.41x
South Africa Market PEG Ratio Median Figure of 79 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Cognition Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cognition Holdings's assets?
Raw Data
JSE:CGN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in ZAR ZAR1.05
JSE:CGN Share Price * JSE (2020-03-30) in ZAR ZAR0.74
Africa Telecom Industry PB Ratio Median Figure of 11 Publicly-Listed Telecom Companies 0.83x
South Africa Market PB Ratio Median Figure of 271 Publicly-Listed Companies 0.66x
JSE:CGN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:CGN Share Price ÷ Book Value per Share (both in ZAR)

= 0.74 ÷ 1.05

0.7x

* Primary Listing of Cognition Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cognition Holdings is good value based on assets compared to the Africa Telecom industry average.
X
Value checks
We assess Cognition Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Cognition Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.2%
Expected Telecom industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cognition Holdings expected to grow at an attractive rate?
  • Unable to compare Cognition Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Cognition Holdings's earnings growth to the South Africa market average as no estimate data is available.
  • Unable to compare Cognition Holdings's revenue growth to the South Africa market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
JSE:CGN Future Growth Rates Data Sources
Data Point Source Value (per year)
Africa Telecom Industry Earnings Growth Rate Market Cap Weighted Average 24.2%
Africa Telecom Industry Revenue Growth Rate Market Cap Weighted Average 2.5%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.2%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:CGN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:CGN Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
JSE:CGN Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-12-31 278 22 13
2019-09-30 246 15 14
2019-06-30 215 7 15
2019-03-31 187 10 18
2018-12-31 158 12 21
2018-09-30 158 31 21
2018-06-30 158 51 21
2018-03-31 159 43 19
2017-12-31 160 36 17
2017-09-30 155 32 18
2017-06-30 151 27 19
2017-03-31 138 28 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Cognition Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if Cognition Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:CGN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Cognition Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:CGN Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
JSE:CGN Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-12-31 0.06
2019-09-30 0.07
2019-06-30 0.08
2019-03-31 0.11
2018-12-31 0.15
2018-09-30 0.15
2018-06-30 0.15
2018-03-31 0.14
2017-12-31 0.13
2017-09-30 0.13
2017-06-30 0.14
2017-03-31 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cognition Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Cognition Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Cognition Holdings's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Telecom companies here
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Cognition Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cognition Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cognition Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cognition Holdings's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cognition Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Cognition Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cognition Holdings's 1-year earnings growth is negative, it can't be compared to the Africa Telecom industry average.
Earnings and Revenue History
Cognition Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cognition Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:CGN Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 277.65 13.27 154.97
2019-09-30 246.40 13.95 142.68
2019-06-30 215.15 14.63 130.38
2019-03-31 186.76 17.63 102.32
2018-12-31 158.37 20.63 74.26
2018-09-30 158.13 20.57 72.60
2018-06-30 157.88 20.51 70.94
2018-03-31 159.16 18.99 72.21
2017-12-31 160.44 17.48 73.48
2017-09-30 155.47 18.04 72.34
2017-06-30 150.51 18.61 71.21
2017-03-31 138.14 19.46 67.02
2016-12-31 125.77 20.32 62.83
2016-09-30 130.40 19.27 61.26
2016-06-30 135.03 18.23 59.68
2016-03-31 134.65 19.66 50.20
2015-12-31 134.27 21.10 40.73
2015-09-30 118.44 23.35 34.98
2015-06-30 102.60 25.61 29.24
2015-03-31 103.97 26.22 29.42
2014-12-31 105.33 26.83 29.61
2014-09-30 111.76 27.16 31.17
2014-06-30 118.20 27.48 32.73
2014-03-31 120.47 26.82 34.31
2013-12-31 122.75 26.16 35.89
2013-09-30 115.06 25.54 33.43
2013-06-30 107.37 24.93 30.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cognition Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cognition Holdings used its assets less efficiently than the Africa Telecom industry average last year based on Return on Assets.
  • Cognition Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cognition Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cognition Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cognition Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cognition Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cognition Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cognition Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cognition Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Cognition Holdings has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cognition Holdings Company Filings, last reported 3 months ago.

JSE:CGN Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 260.38 0.00 68.98
2019-09-30 260.38 0.00 68.98
2019-06-30 297.95 0.00 123.94
2019-03-31 297.95 0.00 123.94
2018-12-31 151.19 0.00 78.92
2018-09-30 151.19 0.00 78.92
2018-06-30 150.05 1.60 104.39
2018-03-31 150.05 1.60 104.39
2017-12-31 144.47 0.87 89.07
2017-09-30 144.47 0.87 89.07
2017-06-30 146.85 3.49 81.28
2017-03-31 146.85 3.49 81.28
2016-12-31 147.25 3.17 74.24
2016-09-30 147.25 3.17 74.24
2016-06-30 146.91 1.88 79.52
2016-03-31 146.91 1.88 79.52
2015-12-31 137.82 5.70 67.78
2015-09-30 137.82 5.70 67.78
2015-06-30 151.78 3.24 95.14
2015-03-31 151.78 3.24 95.14
2014-12-31 140.86 4.67 102.70
2014-09-30 140.86 4.67 102.70
2014-06-30 137.73 4.50 119.14
2014-03-31 137.73 4.50 119.14
2013-12-31 123.69 0.00 104.75
2013-09-30 123.69 0.00 104.75
2013-06-30 126.57 5.67 109.33
  • Cognition Holdings has no debt.
  • Cognition Holdings has no debt compared to 5 years ago when it was 2.7%.
  • Cognition Holdings has no debt, it does not need to be covered by operating cash flow.
  • Cognition Holdings has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Cognition Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cognition Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.51%
Current annual income from Cognition Holdings dividends.
If you bought ZAR2,000 of Cognition Holdings shares you are expected to receive ZAR270 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cognition Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (4.56%).
  • Cognition Holdings's dividend is below the markets top 25% of dividend payers in South Africa (13.83%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:CGN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Africa Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 6.1%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 171 Stocks 5.6%
South Africa Minimum Threshold Dividend Yield 10th Percentile 2.7%
South Africa Bottom 25% Dividend Yield 25th Percentile 4.6%
South Africa Top 25% Dividend Yield 75th Percentile 13.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:CGN Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
JSE:CGN Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-09-18 0.100 14.088
2019-03-15 0.000 0.000
2018-09-27 0.120 10.642
2018-03-09 0.080 7.893
2017-09-28 0.085 6.967
2017-09-27 0.085 5.869
2016-09-28 0.080 5.763
2016-09-27 0.080 5.556
2015-09-29 0.120 8.085
2015-09-15 0.120 6.591
2014-09-18 0.120 5.198
2013-09-27 0.120 5.058
2012-09-28 0.070 3.393
2011-09-26 0.043 4.031
2010-09-22 0.045 4.373
2009-07-15 0.040 4.277
2009-06-30 0.040 5.582

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cognition Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Cognition Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cognition Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cognition Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cognition Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Smith
COMPENSATION ZAR4,980,000
AGE 61
CEO Bio

Mr. Mark Allan Smith, BA, LLB serves as the Chief Executive Officer of Cognition Holdings Limited (a/k/a, FoneWorx Holdings Limited). Mr. Smith served as the Chairman of FoneWorx Holdings Limited. Mr. Smith served the managing director of Infophone Proprietary Limited which operated telephony services in the premium rate service industry where he gained experience in the audiotex telephony platform. He served as the joint managing director of Shield since 1991. He serves as Executive Director of Cognition Holdings Limited. He served as a director of Massmart Holdings Proprietary Limited In May 1995.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in South Africa.
Management Team

Mark Smith

TITLE
CEO & Executive Director
COMPENSATION
ZAR5M
AGE
61

Pieter Scholtz

TITLE
Financial Director & Executive Director
COMPENSATION
ZAR3M
AGE
43
TENURE
12 yrs

Stefan Kleynhans

TITLE
Legal/Human Resource Manager & Company Secretary
COMPENSATION
ZAR1M
TENURE
10.3 yrs

Graham Groenewaldt

TITLE
Sales Director & Executive Director
COMPENSATION
ZAR3M
AGE
61
Board of Directors Tenure

Average tenure and age of the Cognition Holdings board of directors in years:

6.4
Average Tenure
55.5
Average Age
  • The tenure for the Cognition Holdings board of directors is about average.
Board of Directors

Ashvin Mancha

TITLE
Non Executive Chairman
COMPENSATION
ZAR150K
AGE
62

Mark Smith

TITLE
CEO & Executive Director
COMPENSATION
ZAR5M
AGE
61

Pieter Scholtz

TITLE
Financial Director & Executive Director
COMPENSATION
ZAR3M
AGE
43

Graham Groenewaldt

TITLE
Sales Director & Executive Director
COMPENSATION
ZAR3M
AGE
61
TENURE
7 yrs

Roger Matthew Pitt

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR166K
AGE
38
TENURE
6.4 yrs

Gaurang Mooney

TITLE
Independent Non-Executive Director
AGE
49

Paul Jenkins

TITLE
Independent Non-Executive Director
AGE
60
TENURE
6.4 yrs

Piet Greyling

TITLE
Non-Executive Director
AGE
62
TENURE
6.4 yrs

Marc Du Plessis

TITLE
Non-Executive Director
AGE
39
TENURE
6.4 yrs

Trevor Cabot Ahier

TITLE
Independent Non-Executive Director
AGE
51
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
X
Management checks
We assess Cognition Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cognition Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Cognition Holdings Limited, an investment holding company, 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. In addition, the company offers MyPoint that enables panellists to complete surveys and rewards them with points, prizes, and benefits; Community Builds, an interactive relationship-building program; qualitative and quantitative market research services; and omnibus/syndicated studies. Further, it provides Web development services, as well as associated search engine optimization input services; channel incentive program services; SecurDox, a document exchange services; and annual quantifications, reports tracking, in-store, in-store observation, and liquor in-store pricing, as well as print ad tracking, and commissioned and consumer research services. The company was formerly known as FoneWorx Holdings Limited and changed its name to Cognition Holdings Limited in January 2015. Cognition Holdings Limited is headquartered in Randburg, South Africa.

Details
Name: Cognition Holdings Limited
CGN
Exchange: JSE
Founded:
ZAR169,728,636
229,363,022
Website: http://www.cognitionholdings.co.za
Address: Cognition Holdings Limited
Cognition House,
Corner Bram Fischer Drive and Will Scarlet Road,
Randburg,
Gauteng, 2194,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE CGN Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 10. Jan 2000
JSE CGN ZAR0.001 The Johannesburg Securities Exchange ZA ZAR 31. Mar 2020
Number of employees
Current staff
Staff numbers
224
Cognition Holdings employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 19:29
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2019/10/01
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.