COGNYTE SOFTWARE LTD (CGNT)
IL0011691438 - Common Stock
We assign a fundamental rating of 3 out of 10 to CGNT. CGNT was compared to 276 industry peers in the Software industry. While CGNT seems to be doing ok healthwise, there are quite some concerns on its profitability. CGNT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CGNT had negative earnings in the past year.
CGNT had a positive operating cash flow in the past year.
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.
1.2 Ratios
CGNT has a better Return On Assets (-3.30%) than 60.95% of its industry peers.
The Return On Equity of CGNT (-7.88%) is better than 61.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.3% | ||
| ROE | -7.88% | ||
| 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
1.3 Margins
CGNT has a Gross Margin (68.71%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CGNT has grown nicely.
CGNT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.71% |
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%
2. Health
2.1 Basic Checks
CGNT does not have a ROIC to compare to the WACC, probably because it is not profitable.
CGNT has more shares outstanding than it did 1 year ago.
CGNT has more shares outstanding than it did 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.
2.2 Solvency
CGNT has an Altman-Z score of 1.37. This is a bad value and indicates that CGNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.37, CGNT is in line with its industry, outperforming 42.34% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.37 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CGNT should not have too much problems paying its short term obligations.
CGNT has a Current ratio (1.39) which is in line with its industry peers.
A Quick Ratio of 1.26 indicates that CGNT should not have too much problems paying its short term obligations.
CGNT has a Quick ratio of 1.26. This is in the lower half of the industry: CGNT underperforms 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
CGNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.06%, which is quite impressive.
The Revenue has been growing slightly by 0.44% in the past year.
The Revenue has been decreasing by -6.28% on average over the past years.
EPS 1Y (TTM)83.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-43.75%
Revenue 1Y (TTM)0.44%
Revenue growth 3Y-10.93%
Revenue growth 5Y-6.28%
Revenue growth Q2Q14.18%
3.2 Future
CGNT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.07% yearly.
The Revenue is expected to grow by 6.60% on average over the next years.
EPS Next Y12.57%
EPS Next 2Y21.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.18%
Revenue Next 2Y7.93%
Revenue Next 3Y6.74%
Revenue Next 5Y6.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for CGNT. In the last year negative earnings were reported.
Also next year CGNT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CGNT indicates a rather cheap valuation: CGNT is cheaper than 86.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as CGNT's earnings are expected to grow with 21.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for CGNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COGNYTE SOFTWARE LTD
NASDAQ:CGNT (5/2/2024, 1:56:59 PM)
6.96
+0.13 (+1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap494.30M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.3% | ||
| ROE | -7.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)83.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y12.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.44%
Revenue growth 3Y-10.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y