Cognyte Software Ltd. Ordinary Shares (CGNT)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages and conservative finances. Cognyte sells investigative analytics software, a field where embedded systems can create switching costs, but the figures given do not prove a wide moat. In fiscal Q3 2026, revenue was $109.2M and net income was $4.1M, a thin 3.76% margin. The FairStock P/E of -874.00 at the 2026-10-13 close reflects near-zero or negative earnings, so it is not meaningful. FairStock price-to-book is 3.30, return on equity is 2.18%, return on capital employed is 2.19%, and EV/EBITDA is 25.14. Those are not the numbers of a high-quality compounder; they suggest the market is paying a premium for a business that has not yet shown high profitability. Debt is modest with D/E of 0.16, and trailing free cash flow of $33.4M gives a 4.8% FCF yield, the most attractive item here. The FairStock Piotroski F-Score is 6/9, middling, while the FairStock Altman Z-Score of 1.45 signals financial risk. FairStock Score is 55/100, and no Lynch category is assigned because only zero years of filed results exist versus the three needed. The latest quarter was profitable, but the margin is too thin for me. I would need evidence of durable revenue, rising margins, and stronger cash generation before calling this a bargain.

In plain English: Cognyte makes software that helps organizations investigate threats and security problems. In the latest quarter shown, it was slightly profitable on $109.2 million of revenue, but overall profits are very thin and the company does not earn much on the money invested in it. At $8.74, the shares look full compared with those profits, though the cash the business generates gives some support.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer