DB:CGZ

Stock Analysis Report

Executive Summary

Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes worldwide.

Rewards

Earnings are forecast to grow 18.52% per year

Earnings grew by 15.5% over the past year

Risk Analysis

No risks detected for CGZ from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Cognex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.3%

CGZ

2.8%

DE Electronic

0.7%

DE Market


1 Year Return

47.1%

CGZ

8.1%

DE Electronic

15.6%

DE Market

Return vs Industry: CGZ exceeded the German Electronic industry which returned 9.5% over the past year.

Return vs Market: CGZ exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

CGZIndustryMarket
7 Day9.3%2.8%0.7%
30 Day6.6%1.7%1.7%
90 Day16.8%7.3%6.3%
1 Year47.7%47.1%10.7%8.1%19.2%15.6%
3 Year82.7%80.6%55.1%50.2%18.3%7.9%
5 Year227.3%219.8%117.1%101.0%26.8%9.4%

Price Volatility Vs. Market

How volatile is Cognex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cognex undervalued compared to its fair value and its price relative to the market?

59.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGZ (€50.92) is trading above our estimate of fair value (€28.17)

Significantly Below Fair Value: CGZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CGZ is poor value based on its PE Ratio (57.3x) compared to the Electronic industry average (27.1x).

PE vs Market: CGZ is poor value based on its PE Ratio (57.3x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: CGZ is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CGZ is overvalued based on its PB Ratio (7.8x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Cognex forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGZ's forecast earnings growth (18.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: CGZ's earnings (18.5% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: CGZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: CGZ's revenue (14.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: CGZ's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGZ's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Cognex performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGZ has high quality earnings.

Growing Profit Margin: CGZ's current net profit margins (22.6%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: CGZ's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: CGZ's earnings growth over the past year (15.5%) exceeds its 5-year average (14% per year).

Earnings vs Industry: CGZ earnings growth over the past year (15.5%) exceeded the Electronic industry 3.1%.


Return on Equity

High ROE: CGZ's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cognex's financial position?


Financial Position Analysis

Short Term Liabilities: CGZ's short term assets ($625.8M) exceed its short term liabilities ($81.2M).

Long Term Liabilities: CGZ's short term assets ($625.8M) exceed its long term liabilities ($70.0M).


Debt to Equity History and Analysis

Debt Level: CGZ is debt free.

Reducing Debt: CGZ has not had any debt for past 5 years.

Debt Coverage: CGZ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CGZ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CGZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CGZ's debt is covered by short term assets.


Next Steps

Dividend

What is Cognex's current dividend yield, its reliability and sustainability?

0.37%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.5%industryaverage1.4%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: CGZ's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: CGZ's dividend (0.39%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: CGZ is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: CGZ is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CGZ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGZ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Cognex's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Rob Willett (51yo)

8.8yrs

Tenure

US$2,562,093

Compensation

Mr. Robert J. Willett, also known as Rob, has been the Chief Executive Officer of Cognex Corporation, since March 16, 2011. Mr. Willett has been President of Cognex Corporation. since January 2010. He has  ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.56M) is below average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: CGZ's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

71.5yo

Average Age

Experienced Board: CGZ's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€36,18715 Aug 19
Dianne Parrotte
EntityIndividual
Role
Member of the Board of Directors
Director
Shares900
Max Price€40.21

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Doctor Bob Shillman (72yo)

    Founder

    • Tenure: 39yrs
    • Compensation: US$15.99k
  • E. McGarry (62yo)

    Senior Vice President of Research & Development

    • Rob Willett (51yo)

      CEO, President & Executive Director

      • Tenure: 8.8yrs
      • Compensation: US$2.56m
    • Kris Nelson (71yo)

      Senior Vice President of Sales - Americas

      • Didier Lacroix

        Senior Vice President Worldwide Sales & Marketing

        • Susan Conway

          Senior Director of Investor Relations

          • Todd Keebaug

            Vice President of Legal Services

            • Robin Pratt

              Corporate Communications Contractor

              • Sheila DiPalma (52yo)

                Senior VP of Corporate Employee Services & Corporate Officer

                • Tenure: 2.3yrs
                • Compensation: US$343.80k
              • Laura MacDonald (50yo)

                Principal Financial Officer

                • Tenure: 0.7yrs

              Board Members

              • Tony Sun (66yo)

                Lead Independent Director

                • Compensation: US$332.89k
              • Doctor Bob Shillman (72yo)

                Founder

                • Tenure: 39yrs
                • Compensation: US$15.99k
              • Patrick Alias (73yo)

                Non-Executive Director

                • Tenure: 19yrs
                • Compensation: US$518.22k
              • Gene Banucci (75yo)

                Independent Director

                • Tenure: 4.1yrs
                • Compensation: US$334.59k
              • Rob Willett (51yo)

                CEO, President & Executive Director

                • Tenure: 8.8yrs
                • Compensation: US$2.56m
              • Jerry Schneider (71yo)

                Independent Director

                • Tenure: 3.5yrs
                • Compensation: US$334.04k
              • Ted Krantz (76yo)

                Independent Director

                • Tenure: 12.7yrs
                • Compensation: US$341.74k
              • Dianne Parrotte (69yo)

                Director

                • Tenure: 1.8yrs
                • Compensation: US$680.15k

              Company Information

              Cognex Corporation's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Cognex Corporation
              • Ticker: CGZ
              • Exchange: DB
              • Founded: 1981
              • Industry: Electronic Equipment and Instruments
              • Sector: Tech
              • Market Cap: US$10.021b
              • Listing Market Cap: US$9.042b
              • Shares outstanding: 170.90m
              • Website: https://www.cognex.com

              Number of Employees


              Location

              • Cognex Corporation
              • One Vision Drive
              • Natick
              • Massachusetts
              • 1760
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              CGNXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1989
              CGZDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1989
              0I14LSE (London Stock Exchange)YesCommon StockGBUSDJul 1989
              CGNX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1989

              Biography

              Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes worldwide. It provides machine vision products, which are used to automate the manufacture and tracking of discrete items, including mobile phones, aspirin bottles, and automobile tires by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. The company offers VisionPro software, a suite of patented vision tools for advanced programming; Cognex Designer that allows customers to build vision applications with a graphical flowchart-based programming environment; and Cognex ViDi, a deep learning-based image analysis software. It also provides general-purpose vision systems for vision tasks, including part location, identification, measurement, assembly verification, and robotic guidance; and vision sensors for vision applications, such as checking the presence and size of parts comprising In-Sight product line of vision systems and a range of 3D vision systems. In addition, the company offers ID products comprising DataMan image-based barcode readers and barcode verifiers, as well as vision-enabled mobile terminals for industrial barcode reading applications. It sells its products to customers in the consumer electronics and automotive industries, and semiconductor and electronics capital equipment markets through direct sales force, as well as through a network of distributors and integrators. The company was founded in 1981 and is headquartered in Natick, Massachusetts. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/20 20:48
              End of Day Share Price2020/01/20 00:00
              Earnings2019/09/29
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.