COGNEX CORP (CGNX) Stock Fundamental Analysis
NASDAQ:CGNX - Nasdaq - US1924221039 - Common Stock - Currency: USD
CGNX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
In the past year CGNX had a positive cash flow from operations.
CGNX had positive earnings in each of the past 5 years.
CGNX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.33%, CGNX is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.00%, CGNX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of CGNX (5.19%) is better than 64.17% of its industry peers.
CGNX had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 8.95%.
| 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's Profit Margin of 11.61% is amongst the best of the industry. CGNX outperforms 85.00% 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 85.00% of its industry peers.
In the last couple of years the Operating Margin of CGNX has declined.
With an excellent Gross Margin value of 68.43%, CGNX belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
In the last couple of years the Gross Margin of CGNX has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGNX is destroying value.
The number of shares outstanding for CGNX has been reduced compared to 1 year ago.
The number of shares outstanding for CGNX has been reduced compared to 5 years ago.
There is no outstanding debt for CGNX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CGNX has an Altman-Z score of 8.50. This indicates that CGNX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.50, CGNX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 | 8.5 |
ROIC/WACC0.57
WACC9.06%
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.
CGNX has a Current ratio of 3.62. This is in the better half of the industry: CGNX outperforms 68.33% of its industry peers.
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.
The Quick ratio of CGNX (2.69) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.62 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
CGNX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.78%.
The Earnings Per Share has been decreasing by -2.03% on average over the past years.
CGNX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.20%.
The Revenue has been growing slightly by 4.74% on average over the past years.
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 25.99% on average per year.
The Revenue is expected to grow by 11.06% on average over the next years. This is quite good.
EPS Next Y22.67%
EPS Next 2Y27.73%
EPS Next 3Y25.99%
EPS Next 5YN/A
Revenue Next Year9.57%
Revenue Next 2Y11.15%
Revenue Next 3Y10.64%
Revenue Next 5Y11.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 44.30 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 29.63, CGNX is valued a bit more expensive.
The Price/Forward Earnings ratio is 36.11, which means the current valuation is very expensive for CGNX.
CGNX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CGNX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.3 | ||
| Fwd PE | 36.11 |
4.2 Price Multiples
CGNX's Enterprise Value to EBITDA ratio is in line with the industry average.
CGNX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.95 | ||
| EV/EBITDA | 36.7 |
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.
The decent profitability rating of CGNX may justify a higher PE ratio.
CGNX's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y27.73%
EPS Next 3Y25.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, CGNX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.92, CGNX pays a better dividend. On top of this CGNX pays more dividend than 86.67% of the companies listed in the same industry.
With a Dividend Yield of 0.95, CGNX pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of CGNX grows each year by 8.39%, which is quite nice.
CGNX has paid a dividend for at least 10 years, which is 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.
CGNX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.29%
EPS Next 2Y27.73%
EPS Next 3Y25.99%
32.78
-0.62 (-1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.53%
Inst Owner Change1.38%
Ins Owners0.23%
Ins Owner Change0.06%
Market Cap5.62B
Analysts75.17
Price Target46.4 (41.55%)
Short Float %2.59%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-0.98%
PT rev (3m)-3.53%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-3.02%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.3 | ||
| Fwd PE | 36.11 | ||
| P/S | 6.15 | ||
| P/FCF | 41.95 | ||
| P/OCF | 37.71 | ||
| P/B | 3.71 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 36.7 |
EPS(TTM)0.74
EY2.26%
EPS(NY)0.91
Fwd EY2.77%
FCF(TTM)0.78
FCFY2.38%
OCF(TTM)0.87
OCFY2.65%
SpS5.33
BVpS8.85
TBVpS6.07
PEG (NY)1.95
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 | 8.5 |
F-Score6
WACC9.06%
ROIC/WACC0.57
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 Y22.67%
EPS Next 2Y27.73%
EPS Next 3Y25.99%
EPS Next 5YN/A
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%16.79%
Revenue Next Year9.57%
Revenue Next 2Y11.15%
Revenue Next 3Y10.64%
Revenue Next 5Y11.06%
EBIT growth 1Y-6.21%
EBIT growth 3Y-28.52%
EBIT growth 5Y-4.2%
EBIT Next Year67.2%
EBIT Next 3Y41.49%
EBIT Next 5Y34.84%
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%