Key Drivers
- High gross margins
- Positive free cash flow
- Large receivables
AIAI Summary
Cognyte has effectively shifted from a growth‑at‑all‑cost software story into a cash‑generating, government/defense security analytics vendor where valuation now hangs on contract durability, receivables conversion, and whether high gross margins can be converted to sustained positive EBITDA; near‑term upside is tied to continued government deal flow and buyback support but the path to re‑rating requires clear, consecutive margin and recurring‑revenue improvements. Actionable stance: hold/watch — upgrade only after two+ quarters of recurring‑revenue percent increase, sequential margin expansion into consistent EBITDA positivity, and demonstrable reduction in DSO or large receivable concentrations.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High gross margins
- •Positive free cash flow
- •Large receivables
CGNT combines very high gross margins and healthy cash/FCF with low formal debt, but suffers persistent net losses, thin EBITDA, high valuation multiples, and working-capital risks (large receivables/deferred revenue).
Price Behavior
Key Price Behavior Insights:
- •Short-term uptrend
- •Above last-month SMA
- •Near resistance band
CGNT is in a clear short-term uptrend over the last month (≈17% rise to $7.95) trading just above the last-month SMA (~$7.86) with upside momentum toward resistance at $8.5–$8.9 but vulnerable if it breaks back below the SMA.
Price climbed from $6.80 to $7.95 (~17%) over the last month
Sentiment & News
Key News Insights:
- •Government contract wins
- •$20M buyback boost
- •Slowing revenue growth
Cognyte shows steady government contract wins and increased buybacks but faces modest revenue growth, low ROIC and slowing forward momentum ahead of fiscal results.
The combination of recurring government demand and shareholder returns should support near-term stability, but lackluster financial metrics limit upside until fiscal results show clearer improvement
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