Cognyte Software (NasdaqGS:CGNT) - Share price, News & Analysis

CGNT fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

CGNT Stock Overview

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide.

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Cognyte Software Competitors

ChannelAdvisor

NYSE:ECOM

US$446.2m

Opera

NasdaqGS:OPRA

US$523.9m

American Software

NasdaqGS:AMSW.A

US$551.2m

ON24

NYSE:ONTF

US$463.8m

Price History & Performance

Summary of all time highs, changes and price drops for Cognyte Software
Historical stock prices
Current Share Price	US$4.16
52 Week High	US$28.55
52 Week Low	US$3.99
Beta	0
1 Month Change	-39.80%
3 Month Change	-62.82%
1 Year Change	-82.37%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-86.13%

Recent News & Updates

Jun 24

Cognyte Software (NASDAQ:CGNT) Hasn't Managed To Accelerate Its Returns

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Shareholder Returns

	CGNT	US Software	US Market
7D	-37.8%	-4.7%	-2.5%
1Y	-82.4%	-23.7%	-21.2%

Return vs Industry: CGNT underperformed the US Software industry which returned -23.6% over the past year.

Return vs Market: CGNT underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is CGNT's price volatile compared to industry and market?
CGNT volatility
CGNT Average Weekly Movement	14.6%
Software Industry Average Movement	11.0%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CGNT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: CGNT's weekly volatility has increased from 9% to 15% over the past year.

About the Company

Founded	Employees	CEO	Website
2020	2,002	Elad Sharon	https://www.cognyte.com

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company also offers network intelligence analytics, open source and threat intelligence analytics, and operational intelligence analytics solutions.

Cognyte Software Fundamentals Summary

How do Cognyte Software's earnings and revenue compare to its market cap?
CGNT fundamental statistics
Market Cap	US$280.72m
Earnings (TTM)	-US$40.87m
Revenue (TTM)	US$445.75m

0.6x

P/S Ratio

-6.9x

P/E Ratio

Is CGNT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGNT income statement (TTM)
Revenue	US$445.75m
Cost of Revenue	US$133.71m
Gross Profit	US$312.04m
Other Expenses	US$352.91m
Earnings	-US$40.87m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.61
Gross Margin	70.00%
Net Profit Margin	-9.17%
Debt/Equity Ratio	18.2%

How did CGNT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CGNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CGNT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CGNT. This is calculated by dividing CGNT's market cap by their current preferred multiple.
What is CGNT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$280.72m

CGNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	-26x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CGNT's PS Ratio compare to its peers?

CGNT PS Ratio vs Peers

The above table shows the PS ratio for CGNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.8x
ECOM ChannelAdvisor	2.6x	9.8%	US$446.2m
OPRA Opera	1.9x	16.0%	US$523.9m
AMSW.A American Software	4.3x	6.9%	US$551.2m
ONTF ON24	2.3x	7.0%	US$463.8m
CGNT Cognyte Software	0.6x	-2.1%	US$280.7m

Forward PS

Price-To-Sales vs Peers: CGNT is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (2.8x).

Price to Earnings Ratio vs Industry

How does CGNT's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: CGNT is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Software industry average (4.4x)

Price to Sales Ratio vs Fair Ratio

What is CGNT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGNT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	1.9x

Price-To-Sales vs Fair Ratio: CGNT is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

Share Price vs Fair Value

What is the Fair Price of CGNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate CGNT's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CGNT's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGNT's PEG Ratio to determine if it is good value.

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Future Growth

How is Cognyte Software forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGNT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CGNT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CGNT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CGNT's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: CGNT's revenue is forecast to decline over the next 3 years (-2.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CGNT's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Cognyte Software performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-82.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGNT is currently unprofitable.

Growing Profit Margin: CGNT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CGNT is unprofitable, and losses have increased over the past 5 years at a rate of 82.7% per year.

Accelerating Growth: Unable to compare CGNT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGNT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (26.8%).

Return on Equity

High ROE: CGNT has a negative Return on Equity (-13.25%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Cognyte Software's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGNT's short term assets ($347.0M) exceed its short term liabilities ($269.7M).

Long Term Liabilities: CGNT's short term assets ($347.0M) exceed its long term liabilities ($43.2M).

Debt to Equity History and Analysis

Debt Level: CGNT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if CGNT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CGNT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CGNT's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Cognyte Software current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CGNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CGNT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGNT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CGNT has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure

CEO

Elad Sharon (46 yo)

1.33yrs

Tenure

Mr. Elad Sharon serves as Chief Executive Officer and Director at Cognyte Software Ltd. since February 1, 2021. Mr. Sharon had been President, Cyber Intelligence Solutions at Verint Systems Inc. since Janu...

Leadership Team

Experienced Management: CGNT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: CGNT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/04/30
Annual Earnings	2022/01/31