Cengage Learning Holdings II, Inc. (CNGO)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Cengage Learning Holdings II, Inc. (CNGO) trades at $20.75 with AI Score 46/100 (Grade C). Cengage Learning Holdings II, Inc. is a leading education technology provider offering a diverse range of digital and print educational resources. Market cap: $1.29B, Sector: Communication services.
Price live · AI analysis from Jun 14, 2026Analyst Coverage for CNGO: CNGO does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CNGO against Communication Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
CNGO: the 1 perspectives are evenly split.
How is this calculated? →Cengage Learning Holdings II, Inc. (CNGO) Media & Communications Profile
Cengage Learning Holdings II, Inc. stands out as a global education technology provider, delivering innovative digital and print educational resources across multiple segments, including higher education and professional training, while adapting to the growing demand for online learning solutions.
What Is the Investment Thesis for CNGO?
Cengage Learning Holdings II, Inc. is positioned to capitalize on the increasing demand for digital learning solutions, particularly in the higher education and professional training sectors. The company's subscription-based model, exemplified by Cengage Unlimited, provides a steady revenue stream and enhances user engagement. With a market capitalization of $1.29B and a gross margin of 52.8%, Cengage demonstrates strong financial fundamentals despite a negative profit margin of -3.1%. Key growth catalysts include the expansion of its digital offerings and the integration of advanced learning technologies, which are expected to drive revenue growth in the coming years. However, potential risks include the challenges associated with transitioning traditional educational materials to digital formats and the competitive pressures from other education technology providers. Investors should monitor the company's ability to navigate these challenges while leveraging its extensive product portfolio and market presence.
Based on FMP financials and quantitative analysis
CNGO Key Highlights
- Market capitalization of $1.29B indicates a significant presence in the education technology sector.
- Gross margin of 52.8% reflects strong profitability potential, despite a current negative profit margin.
- Cengage Unlimited subscription model provides a recurring revenue stream, enhancing financial stability.
- Diverse product offerings across digital and print materials cater to a wide range of educational needs.
- Established in 1903, Cengage has over a century of experience in the education sector, contributing to its market credibility.
Who Are CNGO's Competitors?
CNGO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HLIT Harmonic Inc. | $14.01 | -0.44% | $1.52B | — |
| PRTS CarParts.com, Inc. | $6.41 | +3.72% | $51.91M | — |
| EDU New Oriental Education & Technology Group Inc. | $48.47 | +3.06% | $7.71B | 54 |
| WYY WidePoint Corporation | $15.41 | -3.17% | $152.41M | 37 |
| SABR Sabre Corporation | $2.10 | +0.72% | $832.13M | — |
| DTRL The Detroit Legal News Company | $280.00 | -8.20% | $10.57M | 61 |
| LEE Lee Enterprises, Incorporated | $9.09 | +4.12% | $55.44M | 56 |
| GWOX The Goodheart-Willcox Company, Inc. | $409.75 | +4.53% | $190.99M | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CNGO's Key Strengths?
- Strong brand recognition and long-standing history in the education sector.
- Diverse range of products catering to various educational needs.
- Established digital platforms that enhance user engagement and learning outcomes.
- Robust subscription model providing consistent revenue streams.
What Are CNGO's Weaknesses?
- Negative profit margin of -3.1% indicating current financial challenges.
- Dependence on the transition from traditional print to digital formats.
- Limited liquidity due to its OTC market classification.
- Potential difficulties in adapting to rapidly changing educational technologies.
What Could Drive CNGO Stock Higher?
- Expansion of Cengage Unlimited subscription services to enhance user engagement and revenue.
- Development of new digital learning platforms to meet evolving educational demands.
- Launch of additional cybersecurity training programs through the Infosec platform.
- Continuous adaptation of traditional educational materials to digital formats.
- Strategic partnerships with educational institutions to broaden market reach.
What Are the Key Risks for CNGO?
- Financial-distress signal — its Altman Z-Score of 0.27 sits in the distress zone (elevated bankruptcy risk).
- Competitive pressures from other education technology providers may impact market share.
- Economic downturns affecting educational budgets and spending patterns.
- Regulatory challenges associated with operating in the OTC market.
- Rapid technological advancements may outpace the company's ability to adapt.
What Are the Growth Opportunities for CNGO?
- Growth opportunity 1: The global e-learning market is expected to reach $375 billion by 2026, driven by increased adoption of digital learning solutions. Cengage can capitalize on this trend by expanding its digital offerings and enhancing user engagement through innovative platforms like Cengage Unlimited.
- Growth opportunity 2: The rise of remote learning due to the COVID-19 pandemic has accelerated the demand for online educational resources. Cengage's established digital platforms and course materials position it to capture a larger share of this expanding market, particularly in higher education and professional training.
- Growth opportunity 3: Cengage's investment in cybersecurity education through its Infosec platform aligns with the growing need for skilled professionals in this field. The cybersecurity training market is projected to grow significantly, providing Cengage with an opportunity to enhance its offerings and attract new customers.
- Growth opportunity 4: The increasing focus on personalized learning experiences presents an opportunity for Cengage to leverage its technology to develop tailored educational solutions. By enhancing its platforms to offer customized learning paths, Cengage can improve student outcomes and increase customer satisfaction.
- Growth opportunity 5: Expansion into international markets represents a significant growth opportunity for Cengage. By adapting its products to meet the needs of diverse educational systems and languages, the company can tap into new revenue streams and enhance its global footprint.
What Opportunities Does CNGO Have?
- Growing global e-learning market presents significant expansion potential.
- Increasing demand for personalized learning experiences can enhance product offerings.
- Expansion into international markets to diversify revenue streams.
- Investment in cybersecurity education aligns with industry needs and trends.
What Threats Does CNGO Face?
- Intense competition from other education technology providers.
- Regulatory challenges associated with operating in the OTC market.
- Rapid technological changes may outpace the company's ability to adapt.
- Economic downturns affecting educational budgets and spending.
What Are CNGO's Competitive Advantages?
- Established brand reputation with over a century of experience in the education sector.
- Diverse product portfolio that includes both digital and print educational resources.
- Strong subscription model providing recurring revenue and customer loyalty.
- Innovative learning platforms that enhance the educational experience for users.
- Ability to adapt to changing educational trends and technologies, positioning the company for future growth.
What Does CNGO Do?
Cengage Learning Holdings II, Inc., founded in 1903, is a prominent global education technology provider headquartered in Boston, Massachusetts. The company operates through three distinct segments: Cengage Academic, Cengage Work, and Cengage Select, each focusing on delivering a comprehensive range of educational resources. Cengage's offerings include digital solutions such as eTextbooks, the subscription-based Cengage Unlimited service for higher education, and the Cengage Infuse embedded course kit designed to enhance the instructor experience. In addition to digital content, Cengage provides traditional print materials, including textbooks, study guides, and lab exercises. The company also specializes in developing custom course content and offers direct support to educators and learners for the effective use of both digital and print solutions. Cengage manages several specialized learning platforms, including MindTap for various subjects, WebAssign for mathematics and physics, and Infosec, which provides cybersecurity training. The company's diverse portfolio extends to the ed2go online learning platform and the Gale brand, which serves K-12, public, and academic libraries. Cengage's commitment to innovation and adaptation to the evolving educational landscape positions it as a leader in the industry, catering to the needs of educators and learners worldwide.
What Products and Services Does CNGO Offer?
- Provide a wide range of digital and print educational resources for higher education, K-12, and professional markets.
- Offer subscription-based services like Cengage Unlimited for access to a vast library of digital content.
- Develop custom course content tailored to the specific needs of educators and institutions.
- Manage specialized learning platforms such as MindTap, WebAssign, and Infosec for various subjects and skills.
- Support educators and learners with direct assistance in deploying and utilizing educational materials.
How Does CNGO Make Money?
- Generate revenue through subscription services, particularly Cengage Unlimited, which offers access to a wide range of digital content.
- Sell traditional print materials such as textbooks and study guides alongside digital offerings.
- Develop custom educational content for institutions and educators, creating tailored solutions.
- Leverage specialized learning platforms to provide targeted educational resources and training.
- Engage in licensing agreements for proprietary content with libraries and educational institutions.
What Industry Does CNGO Operate In?
The publishing industry, particularly in the education sector, is experiencing a significant shift towards digital solutions, driven by the increasing demand for online learning resources. The global e-learning market is projected to grow at a CAGR of 8% from 2021 to 2026, highlighting the potential for companies like Cengage Learning Holdings II, Inc. to expand their market share. The competitive landscape includes established players and new entrants, all vying for a share of the growing digital education market. Cengage's ability to adapt to changing educational trends and leverage its extensive product portfolio positions it favorably within this dynamic industry.
Who Are CNGO's Key Customers?
- Higher education institutions seeking comprehensive digital and print educational resources.
- K-12 schools and districts looking for diverse learning materials and platforms.
- Professional training organizations and individuals pursuing skill development and certifications.
- Public and academic libraries requiring access to educational content and resources.
- Educators and learners seeking customized solutions for their specific educational needs.
ROE 59%Key Financial Metrics
Return on equity for Cengage Learning Holdings II, Inc. stands at 59.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.4%, showing how much profit it generates from its asset base. Its free cash flow yield is 13.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.91 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -2.7%, the inverse of the P/E and a quick read on earnings relative to price.
Cengage Learning Holdings II, Inc. (CNGO) Valuation Context
Valued at $1.29B, CNGO is classified as a small-cap stock. Relative to its peer group, CNGO's quantitative score of 46/100 is roughly in line with the peer average of 46/100.
Company Profile
Cengage Learning Holdings II, Inc. operates in the Publishing industry within the Communication Services sector. It is headquartered in Boston, US. The company is led by CEO Michael E. Hansen. CNGO has traded publicly since 2014.
F-Score 6/9Financial Health
Cengage Learning Holdings II, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.27 places it in the distress zone, a signal of elevated financial risk.
CNGO Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2024
Bull Case vs Bear Case
Bull Case
- Strong brand recognition and long-standing history in the education sector.
- Diverse range of products catering to various educational needs.
- Established digital platforms that enhance user engagement and learning outcomes.
- Robust subscription model providing consistent revenue streams.
Bear Case
- Negative profit margin of -3.1% indicating current financial challenges.
- Dependence on the transition from traditional print to digital formats.
- Limited liquidity due to its OTC market classification.
- Potential difficulties in adapting to rapidly changing educational technologies.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
CNGO Latest News
No recent news available for CNGO.
CNGO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CNGO.
Price Targets
Wall Street price target analysis for CNGO.
CNGO MoonshotScore
What does this score mean?
The MoonshotScore rates CNGO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Michael E. Hansen
CEO
Michael E. Hansen has been at the forefront of Cengage Learning Holdings II, Inc. since 2012, bringing extensive experience in the education sector. He holds a Bachelor of Arts degree from the University of Michigan and an MBA from Harvard Business School. Prior to joining Cengage, Hansen held leadership roles at several educational organizations, focusing on strategic growth and innovation.
Track Record: Under Hansen's leadership, Cengage has successfully transitioned to a digital-first model, significantly expanding its online offerings and subscription services. His strategic initiatives have led to the development of key products like Cengage Unlimited, enhancing the company's market position.
CNGO OTC Market Information
The OTC Other tier represents stocks that do not meet the requirements for listing on major exchanges like NYSE or NASDAQ. These stocks may have less stringent reporting requirements, leading to potential risks in terms of liquidity and transparency.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited regulatory oversight compared to companies listed on major exchanges.
- Potential for lower trading volumes, impacting liquidity.
- Increased volatility due to the nature of OTC trading.
- Challenges in obtaining timely and comprehensive financial information.
- Review the company's financial statements and disclosures for transparency.
- Assess the competitive landscape and market positioning.
- Monitor industry trends and technological advancements.
- Evaluate management's track record and strategic vision.
- Consider the company's debt levels and financial health.
- Established brand with over a century of experience in the education sector.
- Diverse product portfolio catering to a wide range of educational needs.
- Strong customer base across various educational markets.
- Consistent investment in innovation and technology.
What Investors Ask About Cengage Learning Holdings II, Inc. (CNGO) — Communication Services
What does Cengage Learning Holdings II, Inc. do?
Cengage Learning Holdings II, Inc. provides a comprehensive range of educational resources, including digital and print materials for higher education, K-12, and professional markets. The company offers subscription services like Cengage Unlimited, which grants access to a vast library of digital content, and specializes in developing custom course content tailored to the needs of educators and institutions.
What are the key financial metrics investors watch for CNGO?
Investors typically focus on key financial metrics such as market capitalization, profit margin, and gross margin. Cengage Learning Holdings II, Inc. has a market cap of $1.29B, a gross margin of 52.8%, and a profit margin of -3.1%. These metrics provide insights into the company's financial health and operational efficiency, particularly as it navigates the shift from traditional print to digital offerings.
What are the main risks for CNGO?
Cengage Learning Holdings II, Inc. faces several risks, including ongoing competitive pressures from other education technology providers, which could impact market share. Additionally, potential economic downturns may affect educational budgets and spending patterns. The company also faces regulatory challenges associated with its OTC market classification, which can lead to limited liquidity and increased volatility.
What are the key factors to evaluate for CNGO?
Cengage Learning Holdings II, Inc. (CNGO) holds an AI score of 46/100 (low). Not financial advice.
How frequently does CNGO data refresh on this page?
CNGO prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CNGO's recent stock price performance?
Cengage Learning Holdings II, Inc. (CNGO) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand recognition and long-standing history in the education sector. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CNGO overvalued or undervalued right now?
Valuing Cengage Learning Holdings II, Inc. (CNGO) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CNGO?
Before investing in Cengage Learning Holdings II, Inc. (CNGO), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Data is based on the latest available information and may be subject to change.