Cogint, Inc. (NASDAQ: COGT) is a data and analytical solutions company transforming data into intelligence, in a fast and efficient manner. Through leading-edge, proprietary technology and a massive data source, the Company’s data and analytical solutions harness the power of data fusion, uncovering the relevance of disparate data points and converting them into comprehensive and insightful views of people, businesses, assets and their interrelationships.
COGT is a leading-edge data and analytics company providing cloud-based, mission control information and performance marketing solutions to transform data into intelligence in a variety of industries, with a focus on retail, risk management, and investigate services. The Company provides its clients an unmatched analytical solution, driven by the industry’s most comprehensive suite of solutions. The Company’s solutions are improved everyday through big data (comprehensive consumer profiles for >95% of the population) and proprietary machine learning algorithms.
The Company’s shares are trading at an EV/Sales ratio of 1.4x, which is a discount of 67% to the peer group average EV/Sales of 4.3x. The Company reported $186.8 million in revenue for FY16 and is expecting to exceed $230 million in revenue for FY17. While competitors are spread across slower growth industries, COGT provides investors a compelling opportunity to invest in a pure-play in a fast-growing market. Two analysts currently cover the stock with buy/outperform ratings and price targets of $6.00 & $12.00.
- COGT generated $186.8M in revenue in FY16 and estimates $230M-$235M revenue in FY17; Adjusted EBITDA improved to $15.0M from a loss of $6.6M
- COGT reported revenue of $54.2 million in 4Q16, an increase of 400% YoY
- The Company also reported gross profit margins of 24% in 3Q16; long-term target of 45%-55%
- Long-term EBITDA margin target of 20%-25%; driven by expansion into new markets and operating leverage (currently 90% revenue retention and $1 million revenue/employee)
- Company’s Information Services and Performance Marketing products offer solutions across all markets and industries
- Pioneer in the data fusion industry
- Company’s products offer an unmatched combination of solutions (platform, data collection, analytics, actionable decision making) compared to competitors: Alliance Data, Thomson Reuters, Acxiom, Equifax, and Criteo
- Company’s clients include leading brands like AT&T, Nike, Ford, Kellogg & Amazon
- Company’s management team has previous industry experience with major billion-dollar technology companies like TransUnion, LexisNexis, Seisint, and Fluent