Forensic Analysis · Technology / Software · as of Jun 27, 2026
Cognyte Software Ltd. (CGNT)
A forensic read on Cognyte Software Ltd. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Distress
Financial health
0.9
Altman Z-score
Clean
Earnings quality
3
Forensic signals
-1.3%
ROE
$576M
Market cap
Cognyte Software Ltd. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 0.9, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
4%Return on invested capital.Return on invested capital is 4% and rising from -38% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.4%/yrShare-count dilution.Diluted share count changed +7% over the last 3 years to FY2026 (+2.4%/yr). The count is GROWING — existing holders are being diluted. That's ~2.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~7%.
5% of revStock-based comp load.Stock-based compensation ran 5% of revenue and 71% of free cash flow in FY2026 — about $0.29 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
Key fundamentals
Net Margin-0.2%
Debt / Equity0.00x
Free Cash Flow$29.9M
Latest Revenue$400.0M
Return on Equity-0.3%
Revenue Growth YoY+14.1%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Cognyte Software Ltd.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about CGNT's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown