Is Cognyte Software Ltd. (CGNT) Halal?

NASDAQ Technology Israel $566M
✓ HALAL
Confidence: 95/100
Cognyte Software Ltd. (CGNT) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.6% against the AAOIFI threshold of 30%, Cognyte Software Ltd. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Infrastructure), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.6%
/ 30%
17.8%
/ 30%
19.3%
/ 30%
0.7%
/ 5%
✓ HALAL
DJIM 5.6%
/ 33%
17.8%
/ 33%
19.3%
/ 33%
0.7%
/ 5%
✓ HALAL
MSCI 7.1%
/ 33%
22.6%
/ 33%
24.7%
/ 33%
0.7%
/ 5%
✓ HALAL
S&P 5.6%
/ 33%
17.8%
/ 33%
19.3%
/ 33%
0.7%
/ 5%
✓ HALAL
FTSE 7.1%
/ 33%
22.6%
/ 33%
24.7%
/ 50%
0.7%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.01
P/B Ratio
2.7
EV/EBITDA
23.1
EV: $515M
Revenue
$351M
Growth: 12.4%
Beta
1.7
High volatility
Current Ratio
1.3

Profitability

Gross Margin 72.4%
Operating Margin 4.9%
Net Margin -0.2%
Return on Equity (ROE) 2.1%
Return on Assets (ROA) 1.6%

Cash Flow & Balance Sheet

Operating Cash Flow$47M
Free Cash Flow$34M
Total Debt$36M
Debt-to-Equity18.8
Current Ratio1.3
Total Assets$498M

Price & Trading

Last Close$8.07
50-Day MA$8.05
200-Day MA$8.64
Avg Volume380K
Beta1.7
52-Week Range
$6.29
$11.65

About Cognyte Software Ltd. (CGNT)

CEO
Mr. Elad Sharon
Sector
Technology
Industry
Software - Infrastructure
Country
Israel
Exchange
NASDAQ
Market Cap
$566M
Currency
USD

Cognyte Software Ltd., a software-led technology company, focuses on solutions for data processing and analytics worldwide. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. It also offers software products, including subscription or perpetual licenses and appliances that include software that is essential to the product's functionality; software services, such as support and cloud-based SaaS subscriptions; and professional services and others comprising installation and integration services, customer specific development work, resale of third-party hardware, and consulting and training services. In addition, the company provides customer support, professional, and integration services. It serves governments agencies, including national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.

Purification Calculator

As a halal stock with 0.70% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Cognyte Software Ltd. (CGNT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Cognyte Software Ltd. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Cognyte Software Ltd.'s debt ratio?

Cognyte Software Ltd.'s debt ratio is 5.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 7.1%.

Does Cognyte Software Ltd. require dividend purification?

Yes, Cognyte Software Ltd. has an impermissible income ratio of 0.70%, which means 0.70% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Cognyte Software Ltd.'s key financial metrics?

Cognyte Software Ltd. has a market capitalization of $566M, and revenue of $351M. The company maintains a gross margin of 72.4% and a net margin of -0.2%. Return on equity stands at 2.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.