NasdaqGS:CGNX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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

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


Market Performance


7 Day Return

1.1%

CGNX

1.5%

US Electronic

0.5%

US Market


1 Year Return

53.6%

CGNX

17.4%

US Electronic

18.7%

US Market

Return vs Industry: CGNX exceeded the US Electronic industry which returned 18.7% over the past year.

Return vs Market: CGNX exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

CGNXIndustryMarket
7 Day1.1%1.5%0.5%
30 Day8.6%8.2%4.9%
90 Day18.6%26.9%19.8%
1 Year54.2%53.6%18.6%17.4%21.2%18.7%
3 Year35.3%33.7%32.7%28.9%46.2%36.8%
5 Year290.8%281.3%86.5%77.9%85.3%65.1%

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?

82.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGNX ($67.87) is trading above our estimate of fair value ($29.89)

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 (82.5x) compared to the US Electronic industry average (23.3x).

PE vs Market: CGNX is poor value based on its PE Ratio (82.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: CGNX is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CGNX is overvalued based on its PB Ratio (8.5x) compared to the US Electronic industry average (2.2x).


Next Steps

Future Growth

How is Cognex forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGNX's forecast earnings growth (24.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CGNX's earnings (24.3% per year) are forecast to grow faster than the US market (24.1% per year).

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

Revenue vs Market: CGNX's revenue (13.6% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: CGNX's revenue (13.6% 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 (12.7%).


Next Steps

Past Performance

How has Cognex performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGNX has a large one-off loss of $33.8M impacting its June 28 2020 financial results.

Growing Profit Margin: CGNX's current net profit margins (20.5%) are lower than last year (26%).


Past Earnings Growth Analysis

Earnings Trend: CGNX's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: CGNX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CGNX had negative earnings growth (-32%) over the past year, making it difficult to compare to the Electronic industry average (-9.6%).


Return on Equity

High ROE: CGNX's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Cognex's financial position?


Financial Position Analysis

Short Term Liabilities: CGNX's short term assets ($646.5M) exceed its short term liabilities ($144.6M).

Long Term Liabilities: CGNX's short term assets ($646.5M) exceed its long term liabilities ($413.8M).


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


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGNX's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: CGNX's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Rob Willett (52 yo)

9.42yrs

Tenure

US$3,848,831

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 ($USD3.85M) is below average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Shillman
Founder39.58yrsUS$216.48k4.14%
$ 477.5m
Robert Willett
CEO, President & Executive Director9.42yrsUS$3.85mno data
Sheila DiPalma
Senior VP of Corporate Employee Services & Corporate Officer2.83yrsUS$1.83mno data
Laura MacDonald
VP & Corporate Controller12.67yrsUS$1.29mno data
Paul Todgham
Senior VP of Finance & CFO0.42yrno datano data
Susan Conway
Senior Director of Investor Relationsno datano datano data
Todd Keebaug
Vice President of Legal Servicesno datano datano data
Robin Pratt
Corporate Communications Contractorno datano datano data
Didier Lacroix
Senior Vice President Worldwide Sales & Marketingno datano datano data
E. McGarry
Senior Vice President of Research & Developmentno datano datano data
Kris Nelson
Senior Vice President of Sales - Americasno datano datano data
Jörg Küchen
Senior VP & Business Unit Manager of Vision Productsno datano datano data

9.4yrs

Average Tenure

58yo

Average Age

Experienced Management: CGNX's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Shillman
Founder39.58yrsUS$216.48k4.14%
$ 477.5m
Robert Willett
CEO, President & Executive Director9.42yrsUS$3.85mno data
Anthony Sun
Lead Independent Directorno dataUS$547.82k0.18%
$ 20.5m
Patrick Alias
Non-Executive Director19.58yrsUS$770.66kno data
Eugene Banucci
Independent Director4.67yrsUS$555.77k0.019%
$ 2.2m
Jerry Schneider
Independent Director4.08yrsUS$549.67kno data
Theodor Krantz
Independent Director13.25yrsUS$557.42k0.021%
$ 2.4m
Dianne Parrotte
Independent Director2.33yrsUS$730.55k0.0073%
$ 846.9k

9.3yrs

Average Tenure

72.5yo

Average Age

Experienced Board: CGNX's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$11.539b
  • Shares outstanding: 173.05m
  • Website: https://www.cognex.com

Number of Employees


Location

  • Cognex Corporation
  • One Vision Drive
  • Natick
  • Massachusetts
  • 01760-2059
  • 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 manufacturing and distribution tasks worldwide. Its machine vision products are used to ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 00:32
End of Day Share Price2020/08/13 00:00
Earnings2020/06/28
Annual Earnings2019/12/31


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.