We assign a fundamental rating of 4 out of 10 to CGNT. CGNT was compared to 278 industry peers in the Software industry. While CGNT seems to be doing ok healthwise, there are quite some concerns on its profitability. CGNT is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CGNT had positive earnings in the past year.
CGNT had a positive operating cash flow in the past year.
CGNT had negative earnings in 4 of the past 5 years.
CGNT had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of CGNT (-1.09%) is comparable to the rest of the industry.
CGNT's Return On Equity of -2.76% is in line compared to the rest of the industry. CGNT outperforms 55.04% of its industry peers.
CGNT has a Return On Invested Capital of 2.29%. This is in the better half of the industry: CGNT outperforms 67.27% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.09%
ROE	-2.76%
ROIC	2.29%

ROA(3y)-10.49%

ROA(5y)-6.29%

ROE(3y)-24.24%

ROE(5y)-14.49%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 2.27%, CGNT is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
CGNT's Gross Margin of 71.59% is in line compared to the rest of the industry. CGNT outperforms 56.12% of its industry peers.
CGNT's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	2.27%
PM (TTM)	N/A
GM	71.59%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.77%

GM growth 5Y1.89%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CGNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CGNT has more shares outstanding
CGNT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CGNT is higher compared to a year ago.

2.2 Solvency

CGNT has an Altman-Z score of 1.83. This is not the best score and indicates that CGNT is in the grey zone with still only limited risk for bankruptcy at the moment.
CGNT's Altman-Z score of 1.83 is in line compared to the rest of the industry. CGNT outperforms 50.36% of its industry peers.
CGNT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	1.83

ROIC/WACC0.23

WACC9.79%

2.3 Liquidity

CGNT has a Current Ratio of 1.39. This is a normal value and indicates that CGNT is financially healthy and should not expect problems in meeting its short term obligations.
CGNT has a Current ratio (1.39) which is in line with its industry peers.
A Quick Ratio of 1.31 indicates that CGNT should not have too much problems paying its short term obligations.
CGNT has a Quick ratio of 1.31. This is comparable to the rest of the industry: CGNT outperforms 40.65% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.39
Quick Ratio	1.31

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CGNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 205.00%, which is quite impressive.
CGNT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -56.72% yearly.
Looking at the last year, CGNT shows a quite strong growth in Revenue. The Revenue has grown by 14.27% in the last year.
The Revenue has been decreasing by -5.17% on average over the past years.

EPS 1Y (TTM)205%

EPS 3Y-56.72%

EPS 5YN/A

EPS Q2Q%50%

Revenue 1Y (TTM)14.27%

Revenue growth 3Y-9.56%

Revenue growth 5Y-5.17%

Sales Q2Q%13.19%

3.2 Future

CGNT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 129.39% yearly.
CGNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.46% yearly.

EPS Next Y308%

EPS Next 2Y138.05%

EPS Next 3Y129.39%

EPS Next 5YN/A

Revenue Next Year14.53%

Revenue Next 2Y12.68%

Revenue Next 3Y12.71%

Revenue Next 5Y6.46%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

CGNT is valuated quite expensively with a Price/Earnings ratio of 43.00.
CGNT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.32, CGNT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 26.56, the valuation of CGNT can be described as expensive.
Based on the Price/Forward Earnings ratio, CGNT is valued a bit cheaper than the industry average as 61.15% of the companies are valued more expensively.
CGNT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	43
Fwd PE	26.56

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGNT indicates a somewhat cheap valuation: CGNT is cheaper than 70.14% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CGNT indicates a somewhat cheap valuation: CGNT is cheaper than 70.14% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	25
EV/EBITDA	26.26

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CGNT's earnings are expected to grow with 129.39% in the coming years. This may justify a more expensive valuation.