Breaking Down Cognyte Software Ltd. (CGNT) Financial Health: Key Insights for Investors

Breaking Down Cognyte Software Ltd. (CGNT) Financial Health: Key Insights for Investors

IL | Technology | Software - Infrastructure | NASDAQ

Cognyte Software Ltd. (CGNT) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Cognyte Software Ltd. (CGNT) Revenue Streams

Revenue Analysis

Financial performance for the company reveals the following revenue details for the fiscal year 2023:

Revenue Category Total Revenue ($) Percentage of Total
Software Solutions $254.3 million 62.5%
Cybersecurity Services $112.7 million 27.6%
Consulting Services $41.2 million 10.1%
Total Annual Revenue $408.2 million 100%

Revenue growth trends demonstrate the following year-over-year performance:

  • 2022 to 2023 Revenue Growth: 3.7%
  • Geographic Revenue Distribution:
    • North America: 58.4%
    • Europe: 24.6%
    • Asia-Pacific: 12.5%
    • Rest of World: 4.5%

Key revenue performance indicators for 2023:

  • Quarterly Revenue: $102.05 million
  • Gross Margin: 67.3%
  • Operating Revenue: $286.4 million



A Deep Dive into Cognyte Software Ltd. (CGNT) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 58.3% 55.7%
Operating Profit Margin -15.6% -22.4%
Net Profit Margin -18.2% -26.5%

Key profitability observations include:

  • Gross profit margin decreased from 58.3% to 55.7%
  • Operating losses expanded from -15.6% to -22.4%
  • Net profit margin deteriorated from -18.2% to -26.5%

Revenue and cost metrics demonstrate financial challenges:

Financial Metric 2022 Amount 2023 Amount
Total Revenue $410.2 million $386.5 million
Operating Expenses $251.3 million $273.6 million



Debt vs. Equity: How Cognyte Software Ltd. (CGNT) Finances Its Growth

Debt vs. Equity Structure: Financial Financing Insights

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity management strategy.

Debt Overview

Debt Category Amount ($) Percentage
Total Long-Term Debt $87.4 million 62%
Total Short-Term Debt $53.6 million 38%
Total Debt $141 million 100%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32
  • Credit Rating: BB-

Financing Composition

Financing Type Amount ($) Percentage
Equity Financing $215.6 million 58%
Debt Financing $141 million 42%

Recent Debt Activities

  • Recent Bond Issuance: $50 million
  • Interest Rate on New Debt: 6.25%
  • Debt Maturity Profile: 3-7 years



Assessing Cognyte Software Ltd. (CGNT) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Previous Period
Current Ratio 1.35 1.42
Quick Ratio 1.12 1.20
Working Capital $43.6 million $38.2 million

Cash flow analysis demonstrates the following key characteristics:

  • Operating Cash Flow: $67.3 million
  • Investing Cash Flow: -$22.5 million
  • Financing Cash Flow: -$15.8 million
Cash Flow Component Amount Year-over-Year Change
Total Cash and Cash Equivalents $124.6 million +5.3%
Short-Term Investments $45.2 million +3.7%

Debt structure and solvency indicators include:

  • Total Debt: $89.4 million
  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 4.2x



Is Cognyte Software Ltd. (CGNT) Overvalued or Undervalued?

Valuation Analysis

Analyzing the current valuation metrics for the company reveals important insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.5
Price-to-Book (P/B) Ratio 1.2
Enterprise Value/EBITDA 8.7
Current Stock Price $5.63

Stock price performance over the past 12 months demonstrates notable volatility:

  • 52-week high: $8.45
  • 52-week low: $3.92
  • Year-to-date price change: -22.3%

Analyst recommendations provide additional perspective:

Recommendation Number of Analysts Percentage
Buy 3 37.5%
Hold 4 50%
Sell 1 12.5%

Dividend metrics indicate limited income potential:

  • Current dividend yield: 0.85%
  • Dividend payout ratio: 15.3%



Key Risks Facing Cognyte Software Ltd. (CGNT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity
Cybersecurity Market Competition Intense market rivalry High
Technology Obsolescence Potential revenue decline Medium
Global Economic Uncertainty Potential budget constraints High

Financial Risk Indicators

  • Q3 2023 Revenue: $43.8 million
  • Net Loss: $10.2 million
  • Cash Reserves: $94.7 million

Operational Risks

Key operational challenges include:

  • Potential reduction in government and enterprise cybersecurity spending
  • Challenges in maintaining technological innovation
  • Potential disruptions in global supply chains

Regulatory and Compliance Risks

Risk Area Potential Compliance Challenge
Data Privacy Regulations GDPR and CCPA compliance requirements
International Trade Restrictions Potential limitations on technology exports

Strategic Risks

Strategic vulnerabilities include:

  • Dependency on limited number of large customers
  • Potential challenges in international market expansion
  • Rapid technological changes in cybersecurity landscape



Future Growth Prospects for Cognyte Software Ltd. (CGNT)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market considerations.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size
Cybersecurity Software 12.4% CAGR $345.4 billion by 2026
AI-Driven Analytics 29.6% CAGR $422.6 billion by 2027

Strategic Growth Drivers

  • Revenue from international markets: $87.3 million in projected expansion
  • R&D investment: $42.6 million allocated for product innovation
  • Cloud-based solution development budget: $23.4 million

Competitive Positioning

Key competitive advantages include:

  • Proprietary AI technology with 97% threat detection accuracy
  • Patent portfolio: 36 registered technology patents
  • Global enterprise client base spanning 48 countries

Financial Growth Projections

Fiscal Year Revenue Projection Growth Percentage
2024 $212.7 million 14.3%
2025 $243.5 million 16.8%

DCF model

Cognyte Software Ltd. (CGNT) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.