COGNEX CORP (CGNX) Stock Fundamental Analysis
NASDAQ:CGNX - Nasdaq - US1924221039 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CGNX. CGNX was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While CGNX has a great health rating, its profitability is only average at the moment. CGNX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CGNX had positive earnings in the past year.
CGNX had a positive operating cash flow in the past year.
CGNX had positive earnings in each of the past 5 years.
Each year in the past 5 years CGNX had a positive operating cash flow.
1.2 Ratios
CGNX's Return On Assets of 5.33% is fine compared to the rest of the industry. CGNX outperforms 75.81% of its industry peers.
With a decent Return On Equity value of 7.00%, CGNX is doing good in the industry, outperforming 66.94% of the companies in the same industry.
CGNX's Return On Invested Capital of 5.19% is fine compared to the rest of the industry. CGNX outperforms 65.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGNX is in line with the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 7% | ||
| ROIC | 5.19% |
ROA(3y)7.31%
ROA(5y)9.14%
ROE(3y)9.83%
ROE(5y)12.61%
ROIC(3y)7.69%
ROIC(5y)9.5%
1.3 Margins
CGNX has a Profit Margin of 11.61%. This is amongst the best in the industry. CGNX outperforms 86.29% of its industry peers.
CGNX's Profit Margin has declined in the last couple of years.
CGNX's Operating Margin of 12.58% is amongst the best of the industry. CGNX outperforms 83.06% of its industry peers.
CGNX's Operating Margin has declined in the last couple of years.
The Gross Margin of CGNX (68.43%) is better than 97.58% of its industry peers.
CGNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.58% | ||
| PM (TTM) | 11.61% | ||
| GM | 68.43% |
OM growth 3Y-25.46%
OM growth 5Y-8.53%
PM growth 3Y-24.51%
PM growth 5Y-16.2%
GM growth 3Y-2.25%
GM growth 5Y-1.51%
2. Health
2.1 Basic Checks
CGNX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CGNX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CGNX has less shares outstanding
CGNX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CGNX has an Altman-Z score of 6.35. This indicates that CGNX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CGNX (6.35) is better than 84.68% of its industry peers.
CGNX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.35 |
ROIC/WACC0.58
WACC8.98%
2.3 Liquidity
CGNX has a Current Ratio of 3.62. This indicates that CGNX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.62, CGNX is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
CGNX has a Quick Ratio of 2.69. This indicates that CGNX is financially healthy and has no problem in meeting its short term obligations.
CGNX has a better Quick ratio (2.69) than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.62 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.78% over the past year.
CGNX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.03% yearly.
Looking at the last year, CGNX shows a quite strong growth in Revenue. The Revenue has grown by 9.20% in the last year.
CGNX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)2.78%
EPS 3Y-20.81%
EPS 5Y-2.03%
EPS Q2Q%81.82%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%16.79%
3.2 Future
Based on estimates for the next years, CGNX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.50% on average per year.
CGNX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.11% yearly.
EPS Next Y16.06%
EPS Next 2Y23.47%
EPS Next 3Y21.96%
EPS Next 5Y25.5%
Revenue Next Year7.41%
Revenue Next 2Y9.08%
Revenue Next 3Y9.39%
Revenue Next 5Y9.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.12 indicates a quite expensive valuation of CGNX.
CGNX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CGNX is valued at the same level.
CGNX is valuated quite expensively with a Price/Forward Earnings ratio of 27.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CGNX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.32. CGNX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.12 | ||
| Fwd PE | 27.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CGNX.
Based on the Price/Free Cash Flow ratio, CGNX is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.04 | ||
| EV/EBITDA | 25.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CGNX does not grow enough to justify the current Price/Earnings ratio.
CGNX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CGNX's earnings are expected to grow with 21.96% in the coming years.
PEG (NY)2
PEG (5Y)N/A
EPS Next 2Y23.47%
EPS Next 3Y21.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, CGNX has a reasonable but not impressive dividend return.
In the last 3 months the price of CGNX has falen by -40.17%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.39, CGNX pays a better dividend. On top of this CGNX pays more dividend than 86.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, CGNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of CGNX grows each year by 8.39%, which is quite nice.
CGNX has been paying a dividend for at least 10 years, so it has a reliable track record.
CGNX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.39%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
49.29% of the earnings are spent on dividend by CGNX. This is a bit on the high side, but may be sustainable.
The dividend of CGNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.29%
EPS Next 2Y23.47%
EPS Next 3Y21.96%
23.77
+0.22 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.39%
Inst Owner Change0.52%
Ins Owners0.23%
Ins Owner Change1.16%
Market Cap4.03B
Analysts74.48
Price Target43.28 (82.08%)
Short Float %3.05%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.31
Dividend Growth(5Y)8.39%
DP49.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.96%
Min EPS beat(2)3.88%
Max EPS beat(2)26.05%
EPS beat(4)4
Avg EPS beat(4)20.41%
Min EPS beat(4)3.88%
Max EPS beat(4)41.77%
EPS beat(8)8
Avg EPS beat(8)20.23%
EPS beat(12)10
Avg EPS beat(12)16.52%
EPS beat(16)12
Avg EPS beat(16)13.48%
Revenue beat(2)1
Avg Revenue beat(2)0.4%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)2.05%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)3.11%
Revenue beat(8)5
Avg Revenue beat(8)0.88%
Revenue beat(12)7
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)0%
PT rev (3m)-9.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.52%
EPS NY rev (1m)-5.39%
EPS NY rev (3m)-12.06%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-7.57%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.12 | ||
| Fwd PE | 27.68 | ||
| P/S | 4.4 | ||
| P/FCF | 30.04 | ||
| P/OCF | 27 | ||
| P/B | 2.65 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 25.18 |
EPS(TTM)0.74
EY3.11%
EPS(NY)0.86
Fwd EY3.61%
FCF(TTM)0.79
FCFY3.33%
OCF(TTM)0.88
OCFY3.7%
SpS5.4
BVpS8.96
TBVpS6.15
PEG (NY)2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 7% | ||
| ROCE | 6.31% | ||
| ROIC | 5.19% | ||
| ROICexc | 6% | ||
| ROICexgc | 8.58% | ||
| OM | 12.58% | ||
| PM (TTM) | 11.61% | ||
| GM | 68.43% | ||
| FCFM | 14.66% |
ROA(3y)7.31%
ROA(5y)9.14%
ROE(3y)9.83%
ROE(5y)12.61%
ROIC(3y)7.69%
ROIC(5y)9.5%
ROICexc(3y)9.56%
ROICexc(5y)11.82%
ROICexgc(3y)12.73%
ROICexgc(5y)15.09%
ROCE(3y)9.35%
ROCE(5y)11.55%
ROICexcg growth 3Y-25.69%
ROICexcg growth 5Y-4.75%
ROICexc growth 3Y-29.85%
ROICexc growth 5Y-7.09%
OM growth 3Y-25.46%
OM growth 5Y-8.53%
PM growth 3Y-24.51%
PM growth 5Y-16.2%
GM growth 3Y-2.25%
GM growth 5Y-1.51%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.02% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.9% | ||
| Profit Quality | 126.25% | ||
| Current Ratio | 3.62 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z | 6.35 |
F-Score6
WACC8.98%
ROIC/WACC0.58
Cap/Depr(3y)84%
Cap/Depr(5y)75.71%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.9%
Profit Quality(3y)103.13%
Profit Quality(5y)109.22%
High Growth Momentum
Growth
EPS 1Y (TTM)2.78%
EPS 3Y-20.81%
EPS 5Y-2.03%
EPS Q2Q%81.82%
EPS Next Y16.06%
EPS Next 2Y23.47%
EPS Next 3Y21.96%
EPS Next 5Y25.5%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%16.79%
Revenue Next Year7.41%
Revenue Next 2Y9.08%
Revenue Next 3Y9.39%
Revenue Next 5Y9.11%
EBIT growth 1Y-6.21%
EBIT growth 3Y-28.52%
EBIT growth 5Y-4.2%
EBIT Next Year51.56%
EBIT Next 3Y31.32%
EBIT Next 5Y25.02%
FCF growth 1Y49.2%
FCF growth 3Y-23.43%
FCF growth 5Y-10.36%
OCF growth 1Y32.03%
OCF growth 3Y-22%
OCF growth 5Y-10.06%