NasdaqGS:CGNX

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.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

7.2%

CGNX

2.4%

US Electronic

0.07%

US Market


1 Year Return

26.4%

CGNX

16.3%

US Electronic

8.9%

US Market

Return vs Industry: CGNX exceeded the US Electronic industry which returned 16.3% over the past year.

Return vs Market: CGNX exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CGNXIndustryMarket
7 Day7.2%2.4%0.07%
30 Day9.0%3.7%-0.3%
90 Day22.3%2.3%-1.6%
1 Year27.0%26.4%17.5%16.3%11.3%8.9%
3 Year99.3%97.0%55.8%51.4%46.3%36.8%
5 Year190.0%183.7%83.7%74.7%62.1%44.3%

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

Valuation

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

43.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGNX ($52.4) is trading above our estimate of fair value ($28.51)

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


Price To Earnings Ratio

PE vs Industry: CGNX is poor value based on its PE Ratio (43.3x) compared to the Electronic industry average (19.6x).

PE vs Market: CGNX is poor value based on its PE Ratio (43.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CGNX is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CGNX is overvalued based on its PB Ratio (7.5x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Cognex forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGNX's forecast earnings growth (22.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CGNX's earnings (22.1% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CGNX's revenue (14.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CGNX's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGNX's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Cognex performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CGNX's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: CGNX's earnings growth over the past year (23.5%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: CGNX earnings growth over the past year (23.5%) underperformed the Electronic industry 58.6%.


Return on Equity

High ROE: CGNX's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: CGNX has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: CGNX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Cognex's financial position?


Financial Position Analysis

Short Term Liabilities: CGNX's short term assets ($678.9M) exceeds its short term liabilities ($85.7M)

Long Term Liabilities: CGNX's short term assets (678.9M) exceeds its long term liabilities (72.6M)


Debt to Equity History and Analysis

Debt Level: CGNX is debt free.

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

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

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


Balance Sheet

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

Debt Coverage by Assets: CGNX's debt is covered by short term assets (assets are 1.9108604333947E+17x debt).


Next Steps

Dividend

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

0.38%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CGNX's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CGNX's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: CGNX is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Rob Willett (51yo)

8.6yrs

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. In June ...


CEO Compensation Analysis

Compensation vs. Market: Rob's total compensation ($USD2.56M) is below average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CGNX's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

71.5yo

Average Age

Experienced Board: CGNX's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: CGNX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$40,50015 Aug 19
Dianne Parrotte
EntityIndividual
Role
Member of the Board of Directors
Director
Shares900
Max PriceUS$45.00

Ownership Breakdown


Management Team

  • Doctor Bob Shillman (72yo)

    Founder

    • Tenure: 38.8yrs
    • Compensation: US$15.99k
  • E. McGarry (62yo)

    Senior Vice President of Research & Development

    • Tenure: 0yrs
  • Rob Willett (51yo)

    CEO, President & Executive Director

    • Tenure: 8.6yrs
    • Compensation: US$2.56m
  • Kris Nelson (71yo)

    Senior Vice President of Sales - Americas

    • Tenure: 0yrs
  • Didier Lacroix

    Senior Vice President Worldwide Sales & Marketing

    • Tenure: 0yrs
  • Susan Conway

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Todd Keebaug

    Vice President of Legal Services

    • Tenure: 0yrs
  • Robin Pratt

    Corporate Communications Contractor

    • Tenure: 0yrs
  • Sheila DiPalma (52yo)

    Senior VP of Corporate Employee Services & Corporate Officer

    • Tenure: 2yrs
    • Compensation: US$343.80k
  • Laura MacDonald (50yo)

    Principal Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Tony Sun (66yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$332.89k
  • Doctor Bob Shillman (72yo)

    Founder

    • Tenure: 38.8yrs
    • Compensation: US$15.99k
  • Patrick Alias (73yo)

    Non-Executive Director

    • Tenure: 18.8yrs
    • Compensation: US$518.22k
  • Gene Banucci (75yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$334.59k
  • Rob Willett (51yo)

    CEO, President & Executive Director

    • Tenure: 8.6yrs
    • Compensation: US$2.56m
  • Jerry Schneider (71yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$334.04k
  • Ted Krantz (76yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$341.74k
  • Dianne Parrotte (69yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$680.15k

Company Information

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


Key Information

  • Name: Cognex Corporation
  • Ticker: CGNX
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$8.943b
  • Shares outstanding: 170.66m
  • 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 product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:35
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.