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 125 industry peers in the Electronic Equipment, Instruments & Components industry. While CGNX has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, CGNX is valued expensive at the moment.
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.
Each year in the past 5 years CGNX has been profitable.
In the past 5 years CGNX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.09%, CGNX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CGNX's Return On Equity of 8.15% is fine compared to the rest of the industry. CGNX outperforms 70.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.97%, CGNX is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CGNX is in line with the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 8.15% | ||
| ROIC | 5.97% |
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
With an excellent Profit Margin value of 12.80%, CGNX belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
In the last couple of years the Profit Margin of CGNX has declined.
CGNX has a better Operating Margin (13.80%) than 88.80% of its industry peers.
CGNX's Operating Margin has declined in the last couple of years.
CGNX has a Gross Margin of 68.30%. This is amongst the best in the industry. CGNX outperforms 96.80% of its industry peers.
CGNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 12.8% | ||
| GM | 68.3% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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
An Altman-Z score of 7.73 indicates that CGNX is not in any danger for bankruptcy at the moment.
The Altman-Z score of CGNX (7.73) is better than 84.80% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.73 |
ROIC/WACC0.64
WACC9.26%
2.3 Liquidity
A Current Ratio of 3.14 indicates that CGNX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.14, CGNX is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
A Quick Ratio of 2.31 indicates that CGNX has no problem at all paying its short term obligations.
CGNX has a better Quick ratio (2.31) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.14 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
CGNX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.86%, which is quite good.
CGNX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.03% yearly.
CGNX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.57%.
The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)12.86%
EPS 3Y-20.81%
EPS 5Y-2.03%
EPS Q2Q%45.45%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%2.49%
3.2 Future
The Earnings Per Share is expected to grow by 25.50% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.47% on average over the next years. This is quite good.
EPS Next Y17.36%
EPS Next 2Y22.55%
EPS Next 3Y23.06%
EPS Next 5Y25.5%
Revenue Next Year5.58%
Revenue Next 2Y7.89%
Revenue Next 3Y8.81%
Revenue Next 5Y9.47%
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
Based on the Price/Earnings ratio of 39.04, the valuation of CGNX can be described as expensive.
CGNX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CGNX to the average of the S&P500 Index (26.55), we can say CGNX is valued slightly more expensively.
The Price/Forward Earnings ratio is 27.75, which means the current valuation is very expensive for CGNX.
The rest of the industry has a similar Price/Forward Earnings ratio as CGNX.
CGNX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.04 | ||
| Fwd PE | 27.75 |
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 66.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.87 | ||
| EV/EBITDA | 31.33 |
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 23.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)N/A
EPS Next 2Y22.55%
EPS Next 3Y23.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, CGNX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, CGNX pays a better dividend. On top of this CGNX pays more dividend than 86.40% of the companies listed in the same industry.
With a Dividend Yield of 1.06, CGNX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of CGNX is nicely growing with an annual growth rate of 8.39%!
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
45.00% 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.
DP45%
EPS Next 2Y22.55%
EPS Next 3Y23.06%
30.84
-0.59 (-1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.39%
Inst Owner Change-0.99%
Ins Owners0.23%
Ins Owner Change1.22%
Market Cap5.18B
Analysts75
Price Target37.3 (20.95%)
Short Float %3.92%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend0.31
Dividend Growth(5Y)8.39%
DP45%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.47%
Min EPS beat(2)18.89%
Max EPS beat(2)26.05%
EPS beat(4)4
Avg EPS beat(4)14.69%
Min EPS beat(4)3.88%
Max EPS beat(4)26.05%
EPS beat(8)8
Avg EPS beat(8)17.05%
EPS beat(12)10
Avg EPS beat(12)17.53%
EPS beat(16)12
Avg EPS beat(16)14.67%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)2.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)2.05%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)6
Avg Revenue beat(12)0.4%
Revenue beat(16)9
Avg Revenue beat(16)0.67%
PT rev (1m)-0.68%
PT rev (3m)-19.6%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)1.12%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.04 | ||
| Fwd PE | 27.75 | ||
| P/S | 5.63 | ||
| P/FCF | 31.87 | ||
| P/OCF | 29.43 | ||
| P/B | 3.58 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 31.33 |
EPS(TTM)0.79
EY2.56%
EPS(NY)1.11
Fwd EY3.6%
FCF(TTM)0.97
FCFY3.14%
OCF(TTM)1.05
OCFY3.4%
SpS5.48
BVpS8.61
TBVpS5.75
PEG (NY)2.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 8.15% | ||
| ROCE | 7.26% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 9.78% | ||
| OM | 13.8% | ||
| PM (TTM) | 12.8% | ||
| GM | 68.3% | ||
| FCFM | 17.66% |
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-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.45% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.32% | ||
| Profit Quality | 137.97% | ||
| Current Ratio | 3.14 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 7.73 |
F-Score7
WACC9.26%
ROIC/WACC0.64
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)12.86%
EPS 3Y-20.81%
EPS 5Y-2.03%
EPS Q2Q%45.45%
EPS Next Y17.36%
EPS Next 2Y22.55%
EPS Next 3Y23.06%
EPS Next 5Y25.5%
Revenue 1Y (TTM)8.57%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%2.49%
Revenue Next Year5.58%
Revenue Next 2Y7.89%
Revenue Next 3Y8.81%
Revenue Next 5Y9.47%
EBIT growth 1Y10.7%
EBIT growth 3Y-28.52%
EBIT growth 5Y-4.2%
EBIT Next Year47.56%
EBIT Next 3Y29.51%
EBIT Next 5Y20.51%
FCF growth 1Y-19.14%
FCF growth 3Y-23.43%
FCF growth 5Y-10.36%
OCF growth 1Y-20.57%
OCF growth 3Y-22%
OCF growth 5Y-10.06%