Cognyte Software Ltd. (CGNT) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001824814

P/B 3.27

P/E -118.50

P/S 1.72

Market Cap 666.56 Mn

ROIC (Qtr) -102.18

Div Yield % 0.00

Rev 1y % (Qtr) 13.19

Total Debt (Qtr) 37.22 Mn

Debt/Equity (Qtr) 0.18

About

Cognyte Software Ltd., often recognized by its ticker symbol CGNT, operates in the cybersecurity and data analytics industry, specializing in investigative analytics software and services. The company's mission is to assist law enforcement agencies, governments, and private organizations in preventing and investigating cybercrimes. Cognyte's primary business activities revolve around the provision of investigative analytics software and services. These offerings are designed to help customers identify, investigate, and prosecute cybercriminals....

Cognyte Software Ltd., often recognized by its ticker symbol CGNT, operates in the cybersecurity and data analytics industry, specializing in investigative analytics software and services. The company's mission is to assist law enforcement agencies, governments, and private organizations in preventing and investigating cybercrimes.

Cognyte's primary business activities revolve around the provision of investigative analytics software and services. These offerings are designed to help customers identify, investigate, and prosecute cybercriminals. The company's operations span across various countries and regions, providing its services to a global clientele.

The company's revenue is primarily generated through the sale of its investigative analytics software and services. These include the Investigative Analytics Platform, Digital Forensics and Incident Response (DFIR) services, and Cyber Intelligence and Counterintelligence services.

The Investigative Analytics Platform is a cloud-based software solution that provides customers with advanced analytics and visualization tools. It is designed to help customers identify patterns and connections in complex data sets, aiding in investigations related to cybercrimes, fraud, and terrorism.

Cognyte's DFIR services assist customers in responding to and containing cyber incidents. The company's experts use advanced forensic tools and techniques to analyze and investigate cyber incidents, helping customers identify the root cause of the incident and prevent future attacks.

Cognyte's Cyber Intelligence and Counterintelligence services provide customers with strategic intelligence and threat analysis. These services help customers anticipate and prevent cyber threats by using advanced analytics and machine learning algorithms to analyze and interpret large datasets, providing actionable insights to inform their cybersecurity strategies.

Cognyte operates in a highly competitive industry, with key competitors such as Palantir, Splunk, and IBM. The company's competitive advantages lie in its expertise in investigative analytics and its ability to provide customers with advanced analytics and visualization tools.

Cognyte's customer base includes prestigious entities such as the FBI, the Department of Homeland Security, and the Israeli National Police, among others. The company's products and services are relied upon by a wide range of customers, including law enforcement agencies, governments, and private organizations.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 39.05M provides robust 1.05x coverage of total debt 37.22M, indicating excellent debt servicing capability and financial flexibility.
Strong tangible asset base of 383.02M provides 10.29x coverage of total debt 37.22M, indicating robust asset backing and low credit risk.
Operating cash flow of 39.05M provides exceptional 212.24x coverage of interest expenses 184000, showing strong debt service capability.
Robust free cash flow of 26.36M exceeds capital expenditure of 12.69M by 2.08x, indicating strong organic growth funding capability.
Free cash flow of 26.36M provides exceptional 143.26x coverage of interest expense 184000, showing strong debt service ability.

Cons

Operating cash flow of 39.05M barely covers its investment activities of (15.05M), with a coverage ratio of -2.59, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (15.05M) provide weak support for R&D spending of 117.79M, which is -0.13x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 106.59M provide limited coverage of acquisition spending of (4.28M), which is -24.93x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Operating cash flow of 39.05M provides insufficient coverage of deferred revenue obligations of 117.86M, which is 0.33x, raising concerns about future service delivery capabilities.
High receivables of 125.55M relative to inventory of 15.67M (8.01 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.19	2.56
EV to Cash from Ops.	15.69	38.32
EV to Debt	16.47	-11.37
EV to EBIT	260.49	-12.79
EV to EBITDA	29.14	7.72
EV to Free Cash Flow [EV/FCF]	23.25	24.22
EV to Market Cap	0.92	0.58
EV to Revenue	1.58	-35.00
Price to Book Value [P/B]	3.27	3.74
Price to Earnings [P/E]	-118.50	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	12.79	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-11.06	-404.11
Cash and Equivalents Growth (1y) %	-0.64	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	54.39	31.15
EBITDA Growth (1y) %	306.30	49.02
EBIT Growth (1y) %	116.16	25.85
EBT Growth (1y) %	114.83	17.82
EPS Growth (1y) %	57.89	70.69
FCF Growth (1y) %	-0.25	295.45
Gross Profit Growth (1y) %	17.18	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.75	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.50	1.21
Current Ratio	1.39	2.57
Debt to Equity Ratio	0.18	-0.93
Interest Cover Ratio	12.79	-13.15
Times Interest Earned	12.79	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	3.80	-544.82
EBIT Margin %	0.61	-197.78
EBT Margin %	0.56	-602.74
Gross Margin %	71.60	52.06
Net Profit Margin %	-1.40	-605.52

Cognyte Software Ltd. (NASDAQ: CGNT)