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CGTX Stock Analysis - COGNITION THERAPEUTICS INC AI Rating

CGTX Nasdaq Biological Products, (No Diagnostic Substances) DE CIK: 0001455365
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-09-30
AI Rating
SELL
85% Confidence

📊 CGTX Key Takeaways

Revenue: $-10.0K
Net Margin: 201,440.0%
Free Cash Flow: $-21.2M
Current Ratio: 6.44x
Debt/Equity: 0.00x
EPS: $-0.30
AI Rating: SELL with 85% confidence

Investment Thesis

Cognition Therapeutics is a pre-revenue biotech company with minimal revenue (-$10K) and substantial operating losses (-$34.1M), indicating it is in early-stage clinical development with no commercialized products. While the company maintains strong liquidity with $39.3M in cash and a 6.44x current ratio, ongoing negative cash flows of -$21.2M annually suggest the cash runway is limited to approximately 1.8 years at current burn rates, creating significant execution and dilution risk.

CGTX Strengths

  • + Strong liquidity position with $39.3M cash and 6.44x current ratio providing operational flexibility
  • + No meaningful debt burden with 0.00x debt-to-equity ratio reducing financial leverage risk
  • + Stockholders equity of $36.5M provides reasonable balance sheet cushion relative to asset base

CGTX Risks

  • ! Negative operating cash flow of -$21.2M annually with minimal revenue indicates company is pre-commercial with uncertain pathway to profitability
  • ! Limited cash runway of approximately 1.8 years at current burn rate creates near-term financing risk and potential shareholder dilution
  • ! High insider activity (9 Form 4 filings in 90 days) warrants monitoring for potential value destruction or significant corporate events

Key Metrics to Watch

CGTX Financial Metrics

Revenue
$-10.0K
Net Income
$-20.1M
EPS (Diluted)
$-0.30
Free Cash Flow
$-21.2M
Total Assets
$43.4M
Cash Position
$39.3M

💡 AI Analyst Insight

The 211,550.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 6.44x current ratio provides a solid financial cushion.

CGTX Profitability Ratios

Gross Margin N/A
Operating Margin 341,280.0%
Net Margin 201,440.0%
ROE -55.1%
ROA -46.4%
FCF Margin 211,550.0%

CGTX vs Healthcare Sector

How COGNITION THERAPEUTICS INC compares to Healthcare sector averages

Net Margin
CGTX 201,440.0%
vs
Sector Avg 12.0%
CGTX Sector
ROE
CGTX -55.1%
vs
Sector Avg 15.0%
CGTX Sector
Current Ratio
CGTX 6.4x
vs
Sector Avg 2.0x
CGTX Sector
Debt/Equity
CGTX 0.0x
vs
Sector Avg 0.6x
CGTX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CGTX Balance Sheet & Liquidity

Current Ratio
6.44x
Quick Ratio
6.44x
Debt/Equity
0.00x
Debt/Assets
15.8%
Interest Coverage
-38.13x
Long-term Debt
N/A

CGTX 5-Year Financial Trend

CGTX 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: COGNITION THERAPEUTICS INC's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.86 indicates the company is currently unprofitable.

CGTX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
211,550.0%
Free cash flow / Revenue

CGTX Capital Allocation

Operating Cash Flow
-$21.2M
Cash generated from operations
Capital Expenditures
$4.0K
Investment in assets
Dividends
None
No dividend program

CGTX SEC Filings

Access official SEC EDGAR filings for COGNITION THERAPEUTICS INC (CIK: 0001455365)

📋 Recent SEC Filings

Date Form Document Action
Mar 2, 2026 8-K tm267638d1_8k.htm View →
Feb 18, 2026 4 xslF345X05/tm266602-3_4seq1.xml View →
Feb 18, 2026 4 xslF345X05/tm266602-2_4seq1.xml View →
Feb 18, 2026 4 xslF345X05/tm266602-1_4seq1.xml View →
Feb 5, 2026 4 xslF345X05/tm265419-3_4seq1.xml View →

Frequently Asked Questions about CGTX

What is the AI rating for CGTX?

COGNITION THERAPEUTICS INC (CGTX) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CGTX's key strengths?

Strong liquidity position with $39.3M cash and 6.44x current ratio providing operational flexibility. No meaningful debt burden with 0.00x debt-to-equity ratio reducing financial leverage risk.

What are the risks of investing in CGTX?

Negative operating cash flow of -$21.2M annually with minimal revenue indicates company is pre-commercial with uncertain pathway to profitability. Limited cash runway of approximately 1.8 years at current burn rate creates near-term financing risk and potential shareholder dilution.

What is CGTX's revenue and growth?

COGNITION THERAPEUTICS INC reported revenue of $-10.0K.

Does CGTX pay dividends?

COGNITION THERAPEUTICS INC does not currently pay dividends.

Where can I find CGTX SEC filings?

Official SEC filings for COGNITION THERAPEUTICS INC (CIK: 0001455365) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CGTX's EPS?

COGNITION THERAPEUTICS INC has a diluted EPS of $-0.30.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-09-30 | Powered by Claude AI