The actions of Relatives (COGN3) plummet this Thursday (21) on the Ibovespa, leading the index’s losses, with BTG Pactual (BPAC11) maintaining the ‘sell’ recommendation for the shares after the 4Q23 balance sheet came in below its expectations. Other houses were divided regarding the classification for the roles.
Cousins (COGN3). Photo: Unsplash
No intradia, as Cogna shares (COGN3) fell 8.92%, quoted at R$2.45. In the month, the shares fell 2.77% and in the year to date, the fall is 29.79%.
COGN3 Quote
Graph generated on: 03/21/2024
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In a report, the BTG Pactual highlighted that the give the results of Cogna no 4T23 were below average, affected by several non-recurring items. Furthermore, he pointed out that adjusted EBITDA and net profit were below his expectations.
“We recently downgraded Cogna to ‘sell’ and are maintaining this rating. The weak dynamism of profits, reinforced by the fourth quarter results, could bring negative risks to our estimates”, pointed out analysts Samuel Alves and Yam Cesquim.
For the team of analysts at Genial Investimentos, the resumption of the macroeconomic scenario, which left the environment more favorable for students to return to their commitments with higher education, was one of the positive catalysts of the year, along with a good performance of the Kroton, Only and positive fruits of Saber.
However, despite a non-recurring item that strongly impacted the last line of the result, resulting from the write-off of deferred income tax, the house sees the result as positive.
“The last quarter brings with it a monotonous dynamic, given that the recruitment cycles for the on-site and medical segments happen in odd-numbered semesters, however we observe that the company reaped the fruits of a good resourcefulness during 2023”, wrote analysts Vinicius Esteves, Iago Souza and Nina Mirazon.
Genial has a ‘maintain’ recommendation for papers from Cognawith a target price of R$3.00.
For XP (XPBR31), although the give Cogna leverage remains high, at 3.7x adjusted EBITDA, the company observes a clear downward trend, and believes that this number may be overestimated.
“Cash flow before capex doubled y/y, following a strong improvement in receivables. We highlight that the ACV [valor de contrato anual, na sigla em inglês] of Vasta for 2024 incorporates 16% y/y growth in subscription revenues, which we consider strong. The results corroborate our view that the company is on a virtuous trend, and, therefore, we reiterate our buy recommendation for the stock”, he highlights.
Cogna has an adjusted loss of R$373.6 million in 4Q23; see other balance sheet numbers
In the fourth quarter of 2023, Cogna had an adjusted loss of R$373.6 million, reversing the net profit of R$76.1 million recorded in the same period of the previous year.
A receita liquid da Cogna in 4Q23 it was R$1.908 billion in the period, an increase of 12.6% on an annual basis. The recurring Ebitda (earnings before interest, taxes, depreciation and amortization) was R$551.9 million, an increase of 17.1% on the same basis of comparison.
O Cogna’s financial results it was negative R$253.6 million in the fourth quarter, compared to R$258.6 million, also negative, a year earlier.
In 4Q23, the company’s net debt Relatives decreased R$30.1 million, or 0.9% compared to 3Q23. “Even with the effects of M&A and the repurchase of shares in Vasta in the amount of R$40.1 million, net debt went from R$3,332.8 million to R$3,277.6 million”, explained the company.