COGNYTE SOFTWARE LTD (CGNT) Stock Fundamental Analysis
NASDAQ:CGNT - IL0011691438 - Common Stock
8.69 USD
+0.04 (+0.46%)
8.86 USD
+0.17 (+1.96%)
We assign a fundamental rating of 4 out of 10 to CGNT. CGNT was compared to 280 industry peers in the Software industry. The financial health of CGNT is average, but there are quite some concerns on its profitability. CGNT is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years CGNT 4 years had a positive operating cash flow.
1.2 Ratios
CGNT's Return On Assets of -1.61% is in line compared to the rest of the industry. CGNT outperforms 55.71% of its industry peers.
With a Return On Equity value of -4.06%, CGNT perfoms like the industry average, outperforming 56.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -4.06% | ||
| ROIC | N/A |
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
The Gross Margin of CGNT (70.62%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CGNT has grown nicely.
The Profit Margin and Operating Margin are not available for CGNT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.62% |
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%
2. Health
2.1 Basic Checks
CGNT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CGNT has more shares outstanding
The number of shares outstanding for CGNT has been increased compared to 5 years ago.
CGNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that CGNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, CGNT is in line with its industry, outperforming 43.57% of the companies in the same industry.
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 | 1.74 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
CGNT has a Current Ratio of 1.33. This is a normal value and indicates that CGNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, CGNT is in line with its industry, outperforming 43.93% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that CGNT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, CGNT is in line with its industry, outperforming 42.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 950.00% over the past year.
Measured over the past years, CGNT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -56.72% on average per year.
CGNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.56%.
CGNT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.17% yearly.
EPS 1Y (TTM)950%
EPS 3Y-56.72%
EPS 5YN/A
EPS Q2Q%275%
Revenue 1Y (TTM)12.56%
Revenue growth 3Y-9.56%
Revenue growth 5Y-5.17%
Sales Q2Q%15.52%
3.2 Future
Based on estimates for the next years, CGNT will show a very strong growth in Earnings Per Share. The EPS will grow by 90.29% on average per year.
The Revenue is expected to grow by 6.46% on average over the next years.
EPS Next Y217.05%
EPS Next 2Y90.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.13%
Revenue Next 2Y11.34%
Revenue Next 3Y6.46%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.12 indicates a quite expensive valuation of CGNT.
CGNT's Price/Earnings is on the same level as the industry average.
CGNT is valuated expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 40.00, the valuation of CGNT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CGNT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, CGNT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.12 | ||
| Fwd PE | 40 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CGNT is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as CGNT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.83 | ||
| EV/EBITDA | 41.94 |
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 90.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y90.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CGNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.69
+0.04 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.64%
Inst Owner Change-1.63%
Ins Owners4.61%
Ins Owner Change0%
Market Cap634.11M
Analysts45.71
Price Target10.2 (17.38%)
Short Float %0.46%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)733.33%
Min EPS beat(2)194.12%
Max EPS beat(2)1272.55%
EPS beat(4)4
Avg EPS beat(4)488.54%
Min EPS beat(4)157.67%
Max EPS beat(4)1272.55%
EPS beat(8)8
Avg EPS beat(8)662.72%
EPS beat(12)10
Avg EPS beat(12)447.49%
EPS beat(16)12
Avg EPS beat(16)288.5%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)-0.31%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)-0.31%
Revenue beat(8)2
Avg Revenue beat(8)-0.23%
Revenue beat(12)4
Avg Revenue beat(12)-1.59%
Revenue beat(16)5
Avg Revenue beat(16)-3.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)16.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.12 | ||
| Fwd PE | 40 | ||
| P/S | 1.74 | ||
| P/FCF | 54.83 | ||
| P/OCF | 23.45 | ||
| P/B | 3.25 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 41.94 |
EPS(TTM)0.17
EY1.96%
EPS(NY)0.22
Fwd EY2.5%
FCF(TTM)0.16
FCFY1.82%
OCF(TTM)0.37
OCFY4.26%
SpS4.98
BVpS2.67
TBVpS0.94
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -4.06% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.62% | ||
| FCFM | 3.18% |
ROA(3y)-10.49%
ROA(5y)-6.29%
ROE(3y)-24.24%
ROE(5y)-14.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.54% | ||
| Cap/Sales | 4.26% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 213.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.74 |
F-Score7
WACC9.2%
ROIC/WACCN/A
Cap/Depr(3y)75.65%
Cap/Depr(5y)79.28%
Cap/Sales(3y)3.47%
Cap/Sales(5y)3.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)950%
EPS 3Y-56.72%
EPS 5YN/A
EPS Q2Q%275%
EPS Next Y217.05%
EPS Next 2Y90.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.56%
Revenue growth 3Y-9.56%
Revenue growth 5Y-5.17%
Sales Q2Q%15.52%
Revenue Next Year13.13%
Revenue Next 2Y11.34%
Revenue Next 3Y6.46%
Revenue Next 5Y6.46%
EBIT growth 1Y95.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year289.72%
EBIT Next 3Y75.38%
EBIT Next 5Y60.6%
FCF growth 1Y157.37%
FCF growth 3YN/A
FCF growth 5Y-6.04%
OCF growth 1Y389.18%
OCF growth 3Y161.04%
OCF growth 5Y-6.98%