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COGNYTE SOFTWARE LTD (CGNT) Stock Fundamental Analysis

NASDAQ:CGNT - Nasdaq - IL0011691438 - Common Stock - Currency: USD

8.47  -0.06 (-0.7%)

After market: 8.47 0 (0%)

Fundamental Rating

3

Overall CGNT gets a fundamental rating of 3 out of 10. We evaluated CGNT against 281 industry peers in the Software industry. While CGNT seems to be doing ok healthwise, there are quite some concerns on its profitability. CGNT is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

CGNT had negative earnings in the past year.
In the past year CGNT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CGNT reported negative net income in multiple years.
CGNT had a positive operating cash flow in 4 of the past 5 years.
CGNT Yearly Net Income VS EBIT VS OCF VS FCFCGNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -2.67%, CGNT is in line with its industry, outperforming 56.18% of the companies in the same industry.
The Return On Equity of CGNT (-6.76%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -2.67%
ROE -6.76%
ROIC N/A
ROA(3y)-10.43%
ROA(5y)-5.3%
ROE(3y)-23.96%
ROE(5y)-12.36%
ROIC(3y)N/A
ROIC(5y)N/A
CGNT Yearly ROA, ROE, ROICCGNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -20 -40

1.3 Margins

CGNT has a Gross Margin (69.81%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CGNT has grown nicely.
The Profit Margin and Operating Margin are not available for CGNT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 69.81%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.68%
GM growth 5Y3.02%
CGNT Yearly Profit, Operating, Gross MarginsCGNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

CGNT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for CGNT has been increased compared to 1 year ago.
The number of shares outstanding for CGNT has been increased compared to 5 years ago.
There is no outstanding debt for CGNT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CGNT Yearly Shares OutstandingCGNT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M
CGNT Yearly Total Debt VS Total AssetsCGNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 1.55, we must say that CGNT is in the distress zone and has some risk of bankruptcy.
CGNT has a Altman-Z score (1.55) which is in line with its industry peers.
There is no outstanding debt for CGNT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.55
ROIC/WACCN/A
WACC9.58%
CGNT Yearly LT Debt VS Equity VS FCFCGNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 1.30 indicates that CGNT should not have too much problems paying its short term obligations.
CGNT's Current ratio of 1.30 is in line compared to the rest of the industry. CGNT outperforms 40.99% of its industry peers.
A Quick Ratio of 1.22 indicates that CGNT should not have too much problems paying its short term obligations.
CGNT has a Quick ratio of 1.22. This is in the lower half of the industry: CGNT underperforms 65.02% of its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.22
CGNT Yearly Current Assets VS Current LiabilitesCGNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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3

3. Growth

3.1 Past

CGNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.86%.
Looking at the last year, CGNT shows a quite strong growth in Revenue. The Revenue has grown by 12.12% in the last year.
Measured over the past years, CGNT shows a decrease in Revenue. The Revenue has been decreasing by -6.28% on average per year.
EPS 1Y (TTM)-42.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-94.12%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y-10.93%
Revenue growth 5Y-6.28%
Sales Q2Q%12.1%

3.2 Future

CGNT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.74% yearly.
Based on estimates for the next years, CGNT will show a small growth in Revenue. The Revenue will grow by 7.60% on average per year.
EPS Next Y124.29%
EPS Next 2Y63.71%
EPS Next 3Y39.74%
EPS Next 5YN/A
Revenue Next Year12.26%
Revenue Next 2Y9.56%
Revenue Next 3Y9.63%
Revenue Next 5Y7.6%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CGNT Yearly Revenue VS EstimatesCGNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 100M 200M 300M 400M
CGNT Yearly EPS VS EstimatesCGNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 -1

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4

4. Valuation

4.1 Price/Earnings Ratio

CGNT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
CGNT is valuated quite expensively with a Price/Forward Earnings ratio of 59.31.
CGNT's Price/Forward Earnings is on the same level as the industry average.
CGNT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.
Industry RankSector Rank
PE N/A
Fwd PE 59.31
CGNT Price Earnings VS Forward Price EarningsCGNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CGNT is valued a bit cheaper than the industry average as 60.07% of the companies are valued more expensively.
78.45% of the companies in the same industry are more expensive than CGNT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 23.04
EV/EBITDA 98.09
CGNT Per share dataCGNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

CGNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CGNT's earnings are expected to grow with 39.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.71%
EPS Next 3Y39.74%

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0

5. Dividend

5.1 Amount

CGNT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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COGNYTE SOFTWARE LTD

NASDAQ:CGNT (3/7/2025, 8:13:03 PM)

After market: 8.47 0 (0%)

8.47

-0.06 (-0.7%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-11 2024-12-11/bmo
Earnings (Next)04-07 2025-04-07/amc
Inst Owners78.25%
Inst Owner Change40.25%
Ins Owners2.15%
Ins Owner Change10.07%
Market Cap608.91M
Analysts45.71
Price Target7.65 (-9.68%)
Short Float %0.93%
Short Ratio2.3
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)243.74%
Min EPS beat(2)157.67%
Max EPS beat(2)329.82%
EPS beat(4)4
Avg EPS beat(4)135.55%
Min EPS beat(4)16.49%
Max EPS beat(4)329.82%
EPS beat(8)7
Avg EPS beat(8)480.82%
EPS beat(12)8
Avg EPS beat(12)252.48%
EPS beat(16)12
Avg EPS beat(16)202.2%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)2.42%
Revenue beat(8)4
Avg Revenue beat(8)0.9%
Revenue beat(12)4
Avg Revenue beat(12)-4.04%
Revenue beat(16)6
Avg Revenue beat(16)12.61%
PT rev (1m)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)200%
EPS NY rev (1m)0%
EPS NY rev (3m)304.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.69%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 59.31
P/S 1.79
P/FCF 23.04
P/OCF 16.09
P/B 3.06
P/tB 8.4
EV/EBITDA 98.09
EPS(TTM)-0.2
EYN/A
EPS(NY)0.14
Fwd EY1.69%
FCF(TTM)0.37
FCFY4.34%
OCF(TTM)0.53
OCFY6.22%
SpS4.73
BVpS2.76
TBVpS1.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.67%
ROE -6.76%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 69.81%
FCFM 7.78%
ROA(3y)-10.43%
ROA(5y)-5.3%
ROE(3y)-23.96%
ROE(5y)-12.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.68%
GM growth 5Y3.02%
F-Score6
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 82.5%
Cap/Sales 3.36%
Interest Coverage N/A
Cash Conversion 732.21%
Profit Quality N/A
Current Ratio 1.3
Quick Ratio 1.22
Altman-Z 1.55
F-Score6
WACC9.58%
ROIC/WACCN/A
Cap/Depr(3y)71.32%
Cap/Depr(5y)84.57%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-94.12%
EPS Next Y124.29%
EPS Next 2Y63.71%
EPS Next 3Y39.74%
EPS Next 5YN/A
Revenue 1Y (TTM)12.12%
Revenue growth 3Y-10.93%
Revenue growth 5Y-6.28%
Sales Q2Q%12.1%
Revenue Next Year12.26%
Revenue Next 2Y9.56%
Revenue Next 3Y9.63%
Revenue Next 5Y7.6%
EBIT growth 1Y78.18%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year673.62%
EBIT Next 3Y132.41%
EBIT Next 5Y79.13%
FCF growth 1Y139.38%
FCF growth 3Y-21.14%
FCF growth 5Y-9.12%
OCF growth 1Y171.29%
OCF growth 3Y-21.45%
OCF growth 5Y-8.45%