ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cognyte Software's annualizedNet Income for the quarter that ended in Apr. 2026 was $-12.2 Mil.
Cognyte Software's average Total Assets over the quarter that ended in Apr. 2026 was $522.4 Mil. Therefore, Cognyte Software's annualized ROA % for the quarter that ended in Apr. 2026 was -2.33%.
The historical rank and industry rank for Cognyte Software's ROA % or its related term are showing as below:
CGNT'
s ROA % Range Over the Past 10 Years
Min: -20.61 Med: -1.22 Max: 2.51
Current: -0.53
During the past 8 years, Cognyte Software's highest ROA % was 2.51%. The lowest was -20.61%. And the median was -1.22%.
CGNT's ROA % is ranked worse than 58.97% of 2883
companies
in the Software industry
Industry Median: 1.68
vs CGNT: -0.53
Cognyte Software (NAS:CGNT) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Cognyte Software ROA % Related Terms
Cognyte Software ROA % Historical Data
* Premium members only.
The historical data trend for Cognyte Software's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Cognyte Software's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognyte Software ROA % vs Software Industry
For the Software industry and Technology sector, Cognyte Software's ROA % distribution charts can be found below:
* The bar in red indicates where Cognyte Software's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Cognyte Software (CGNT) has a ROA % of -2.33% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cognyte Software and its competitors. According to the industry distribution chart, Cognyte Software ranks #1700 out of 2883 companies in the Software industry, placing it in the top 59%.
Is Cognyte Software's ROA % too high?
Cognyte Software's current ROA % is -2.33%. Based on the distribution chart, Cognyte Software ranks #1700 out of 2883 companies in the Software industry, which is below the industry midpoint. Overall, Cognyte Software has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognyte Software's ROA % compare to SABR and HQ?
According to the Software industry distribution chart, Cognyte Software ranks #1700 out of 2883 companies for ROA %. This places Cognyte Software in the lower half of its industry. The industry median ROA % is 1.68. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Software company?
The median ROA % among Software companies is 1.68, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cognyte Software and its competitors. For the Software industry, the median ROA % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognyte Software's current ROA % is -2.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognyte Software stock overvalued right now?
Based on GuruFocus' analysis, Cognyte Software (CGNT) is currently considered Modestly Undervalued. The stock's GF Value™ is $9.42, compared to a current price of $7.98 — trading 15.3% below its estimated fair value. The current ROA % is -2.33%. Cognyte Software's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Cognyte Software (CGNT), the current ROA % is -2.33% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cognyte Software (CGNT) Overvalued in 2026?
Based on GuruFocus' analysis, Cognyte Software stock appears to be undervalued.
The current stock price of $7.98 is trading 15.3% below its estimated GF Value™ of $9.42.
GuruFocus considers Cognyte Software to be Modestly Undervalued.
Key valuation signals for CGNT:
ROA %: -2.33%
GF Value™: $9.42 vs. price of $7.98 (15.3% below fair value)
No single metric tells the full story. See the CGNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognyte Software Ltd provides security analytics software that empowers governments and enterprises with Actionable Intelligence. Its interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making.
72GF Score
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