One-glance verdict
Within fair range
$10.28 our estimate vs market $8.46
Wall Street consensus: $12.33 (19.9% higher than our fair-value estimate)
18% below our estimate
Fundamentals snapshot
Cognyte Software Ltd.
CGNT · NMS · Technology · Software - Infrastructure
Current price
$8.46
52-week range
$6.29 - $12.31
Market cap
$624.73M
Balance sheet
Healthy
68.36x Strong cushion
Net cash $66.98M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 28.2% last year.
- Reward Returns 2.2% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 2/10 years.
What this company does
Cognyte Software Ltd.
Cognyte Software sells advanced data analysis tools to government agencies to help them investigate security threats. The company mainly makes money from software subscriptions and related support services, which aims to create predictable recurring revenue (money that comes in consistently from ongoing contracts, rather than one-time sales).
How the company got here
Cognyte Software began its journey as a publicly traded company in 2021 when it was spun off from Verint Systems. This separation allowed Cognyte to focus exclusively on its security and investigative analytics software. The company is headquartered in Israel and serves a global customer base. Since becoming independent, Cognyte has concentrated on providing governments and other organizations with tools to analyze large amounts of data for security purposes.
What it actually does
Cognyte provides investigative analytics software that helps organizations like government agencies and law enforcement find critical information within vast amounts of data. Think of it as a powerful search engine and analysis tool combined, designed to find the "needle in the haystack" to prevent threats and solve investigations. Their software takes in information from many different sources, helps users see connections and patterns, and turns that raw data into actionable intelligence (insights that can be used to make decisions). This helps security teams work faster and more effectively to address criminal activities and threats to national security.
Software Services
This is the largest part of Cognyte's business, where customers pay for ongoing access to its software and support. This includes cloud-based subscriptions, often called SaaS (Software as a Service), where users access the software over the internet. This generates recurring revenue (income that is predictable and likely to continue in the future), which provides the company with a steady stream of cash. Customers in this segment are typically government agencies that need continuous access to the latest investigative tools and updates.
Software Products
In this segment, Cognyte sells perpetual licenses, which are one-time purchases giving the customer the right to use the software indefinitely. Sometimes this also includes selling the hardware appliances that are necessary for the software to run. This way of making money is more traditional than subscriptions and results in upfront revenue for the company. These products form the foundation of a customer's investigative capabilities.
Professional Services and Other
This part of the business involves providing expert help to customers to get the most out of Cognyte's software. This can include installation, integrating the software with a customer's existing systems, and providing specialized training. While a smaller portion of the business, these services are important for ensuring customers can successfully use the powerful and complex analytics tools. Revenue from this segment can fluctuate depending on the timing of specific customer projects.
What management is betting on now
Cognyte is heavily focused on expanding its use of Artificial Intelligence (AI) and machine learning to make its investigative tools smarter and more automated. The company is developing features like an "intelligence co-pilot" to help analysts ask questions in natural language and get insights faster. They are also concentrating on growing their subscription-based offerings to increase predictable, recurring revenue. A key part of their strategy is to expand business with existing customers, selling them more capacity and advanced features as their data needs grow.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$36.20M
FY2026 Q4
$29.93M
Revenue
$400.04M
Net income
$-638.00K
Diluted EPS
-0.01
Operating cash flow
$40.33M
Free cash flow
$29.93M
Fetching…
Sources
Revenue
$350.63M
Net income
$-12.05M
Diluted EPS
-0.17
Operating cash flow
$46.78M
Free cash flow
$36.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.28 vs current price $8.46
Wall Street consensus is the average analyst price target: $12.33 (19.9% higher than our fair-value estimate).
Our most-likely fair value is $10.28 a share — about 21.6% away from today's price of $8.46, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $67.0M - more cash than debt. Interest coverage 68.4x.
Net debt
$-66.98M
Interest coverage
68.36x
Cognyte Software Ltd.'s profit covers its interest bill about 68.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CGNT
BASELINE
Cognyte Software Ltd.
Total debt $35.19M Interest coverage 68.36x This is the baseline the peer rows are being compared against.
Total debt $23.23M Interest coverage 127.11x +86% vs CGNT Carries about 1.9x more debt cushion than CGNT.
Total debt $23.53M Interest coverage -2.53x -100% vs CGNT This peer has almost no interest-payment cushion compared with CGNT.
Total debt $961.65M Interest coverage 1.11x -98% vs CGNT Carries about 61.7x less debt cushion than CGNT.
Total debt $33.12M Interest coverage 2,764.25x +3,944% vs CGNT Carries about 40.4x more debt cushion than CGNT.
What you should know
The case for and against CGNT
3 Rewards
0 Risks
Rewards
-
Revenue grew 28.2% last year.
-
Returns 2.2% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
10.99x
P/B
3.20x
P/S
1.48x
EV/EBITDA
22.18x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
73.0%
Operating margin
4.3%
Net margin
-0.0%
ROE
2.2%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
1.33x
Quick ratio
1.06x
Total debt
$35.19M
Total cash
$102.17M
Growth
How the business has been compounding
Revenue TTM
$1.38B
Revenue 5Y CAGR
-2.5%
EPS TTM
-0.01
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$84.69M
Free CF TTM
$29.93M
FCF margin
2.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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