Cognyte Software Ltd. Ordinary Shares (CGNT)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $27 million in annual free cash flow (3.9% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.19, providing financial flexibility

Concerns

• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cognyte Software Ltd. Ordinary Shares is a micro-cap technology company valued at $696 million. Revenue stands at $400 million. From a quality standpoint, Cognyte shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is 2.5% FCF yield. Growth dynamics show revenue growing at 12.4% and profit growth of 406.1%. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $27 million in annual free cash flow (3.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer