Cognyte Software Ltd. (NASDAQ: CGNT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001824814
Market Cap 672.89 Mn
P/B 3.30
P/E -119.62
P/S 1.73
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....

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.20 2.69
EV to Cash from Ops. EV/CFO 15.86 28.91
EV to Debt EV to Debt 16.64 19.83
EV to EBIT EV/EBIT 263.18 -9.95
EV to EBITDA EV/EBITDA 29.44 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 23.49 26.09
EV to Market Cap EV to Market Cap 0.92 0.36
EV to Revenue EV/Rev 1.59 -9.34
Price to Book Value [P/B] P/B 3.30 3.88
Price to Earnings [P/E] P/E -119.62 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 12.79 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.06 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.64 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 54.39 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 306.30 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 116.16 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 114.83 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 57.89 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -0.25 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.18 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.75 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.50 1.22
Current Ratio Curr Ratio (Qtr) 1.39 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 -0.96
Interest Cover Ratio Int Coverage (Qtr) 12.79 -14.20
Times Interest Earned Times Interest Earned (Qtr) 12.79 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.80 -548.16
EBIT Margin % EBIT Margin % (Qtr) 0.61 -199.84
EBT Margin % EBT Margin % (Qtr) 0.56 -607.20
Gross Margin % Gross Margin % (Qtr) 71.60 51.88
Net Profit Margin % Net Margin % (Qtr) -1.40 -610.00