Stock fact sheet · data as of
Cognyte Software Ltd. (CGNT): fair value, margin of safety and Wheel Score
Technology · Software - Infrastructure · Israel · Speculative / Distressed
Is CGNT undervalued?
CGNT closed at 8.82 on 16 Oct 2026, 13% below the GLS average fair value of 10.10 from 1 models (1 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 18 of the 25 Value points.
Only 1 of the nine models produced a value (10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files CGNT under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for CGNT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 10.10 | +15% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 0.0821 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.75 | +22% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - CGNT passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC -0.3%, ROE -0.3%, ROA -0.1% - with debt at 0.21 times equity and a free-cash-flow yield of 5.3%.
Cognyte Software Ltd. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Technology Service 47%, Product 40%, Professional Services And Other 13% (fiscal year FY2026).
Institutional ownership scores 9/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -0.3% |
|---|---|---|---|
| GLS Moat | 2.4 / 10 | ROE | -0.3% |
| Debt / equity | 0.21 | ROA | -0.1% |
| Free-cash-flow yield | 5.3% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 45: Weak
CGNT scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 18/25, Health 11/20, Moat 4/15, Premium 20/20, Stability 11/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 51% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 11,035 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 594k shares a day on a market cap of $651M, with a beta of 1.59 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 18 / 25 | 13% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 4 / 15 | moat 2.4/10 | |
| Premium | 20 / 20 | implied volatility 51% | |
| Stability | 11 / 20 | 594k shares/day, $651M cap, beta 1.59 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 8 Dec 2026, 53 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Infrastructure
The 12 companies below are the closest to Cognyte Software Ltd. by market cap within the Software - Infrastructure industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
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| BLZE Backblaze, Inc. | 9.91 | 7.62 | -30% | 29Weak | $613M |
| SABR Sabre Corporation | 1.78 | 23.41 | +92% | 75Good | $718M |
| HQ Horizon Quantum Holdings Ltd. Class A Ordinary Shares | 13.94 | - | - | 35Weak | $752M |
| RXT Rackspace Technology, Inc. | 3.15 | 6.67 | +53% | 45Weak | $802M |
| BRUN Boost Run Inc. Class A Common Stock | 10.08 | 7.66 | -32% | 18Weak | $814M |
| RPD Rapid7, Inc. | 12.38 | 22.01 | +44% | 70Good | $834M |
| KPLT Katapult Holdings, Inc. | 5.78 | 108.69 | +95% | 39No options | $490M |
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Start free See the Sunday ScanQuestions about CGNT
Is CGNT undervalued right now?
By the GLS models, moderately: at 8.82 the stock trades 13% below the average fair value of 10.10 (data as of 16 Oct 2026).
What is the Wheel Score of CGNT and what does it mean?
CGNT scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CGNT?
10.10 per share as of 16 Oct 2026 - the simple average of the 1 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Cognyte Software Ltd. report earnings next?
The next earnings report is due on 8 Dec 2026 (before the open), 53 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CGNT have listed options, and how liquid are they?
Yes. The nightly snapshot found 84 listed contracts with 11,035 open interest across all expiries and implied volatility of 51% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.