COGNEX CORP (CGNX) Stock Fundamental Analysis
NASDAQ:CGNX - Nasdaq - US1924221039 - Common Stock - Currency: USD
Overall CGNX gets a fundamental rating of 6 out of 10. We evaluated CGNX against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CGNX gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, CGNX is valued expensive at the moment. With these ratings, CGNX could be worth investigating further for quality investing!.
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.
In the past 5 years CGNX has always been profitable.
CGNX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CGNX (6.09%) is better than 80.80% of its industry peers.
Looking at the Return On Equity, with a value of 8.15%, CGNX is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
CGNX's Return On Invested Capital of 5.97% is fine compared to the rest of the industry. CGNX outperforms 68.80% 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 9.16%.
| 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
CGNX has a Profit Margin of 12.80%. This is amongst the best in the industry. CGNX outperforms 89.60% of its industry peers.
CGNX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.80%, CGNX belongs to the top of the industry, outperforming 88.80% of the companies in the same industry.
In the last couple of years the Operating Margin of CGNX has declined.
CGNX's Gross Margin of 68.30% is amongst the best of the industry. CGNX outperforms 97.60% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGNX is destroying value.
CGNX has less shares outstanding than it did 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
An Altman-Z score of 8.34 indicates that CGNX is not in any danger for bankruptcy at the moment.
The Altman-Z score of CGNX (8.34) is better than 86.40% 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 | 8.34 |
ROIC/WACC0.63
WACC9.45%
2.3 Liquidity
CGNX has a Current Ratio of 3.14. This indicates that CGNX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CGNX (3.14) is better than 64.00% of its industry peers.
CGNX has a Quick Ratio of 2.31. This indicates that CGNX is financially healthy and has no problem in meeting 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
The Earnings Per Share has grown by an nice 12.86% 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 8.57% in the last year.
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
CGNX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.50% yearly.
The Revenue is expected to grow by 2.22% on average over the next years.
EPS Next Y17.7%
EPS Next 2Y23.05%
EPS Next 3Y23.06%
EPS Next 5Y25.5%
Revenue Next Year5.58%
Revenue Next 2Y7.89%
Revenue Next 3Y8.81%
Revenue Next 5Y2.22%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.47, the valuation of CGNX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CGNX.
When comparing the Price/Earnings ratio of CGNX to the average of the S&P500 Index (27.41), we can say CGNX is valued expensively.
A Price/Forward Earnings ratio of 30.65 indicates a quite expensive valuation of CGNX.
CGNX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CGNX to the average of the S&P500 Index (35.19), we can say CGNX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.47 | ||
| Fwd PE | 30.65 |
4.2 Price Multiples
CGNX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CGNX is valued a bit cheaper than the industry average as 65.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.48 | ||
| EV/EBITDA | 34.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CGNX has a very decent profitability rating, which 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)2.46
PEG (5Y)N/A
EPS Next 2Y23.05%
EPS Next 3Y23.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, CGNX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.82, CGNX pays a better dividend. On top of this CGNX pays more dividend than 86.40% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CGNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
The dividend of CGNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45%
EPS Next 2Y23.05%
EPS Next 3Y23.06%
34.34
-0.4 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.03%
Inst Owner Change-0.07%
Ins Owners0.27%
Ins Owner Change1.27%
Market Cap5.76B
Analysts75.38
Price Target37.69 (9.76%)
Short Float %3.35%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)1.06%
PT rev (3m)-12.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.47 | ||
| Fwd PE | 30.65 | ||
| P/S | 6.27 | ||
| P/FCF | 35.48 | ||
| P/OCF | 32.76 | ||
| P/B | 3.99 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 34.4 |
EPS(TTM)0.79
EY2.3%
EPS(NY)1.12
Fwd EY3.26%
FCF(TTM)0.97
FCFY2.82%
OCF(TTM)1.05
OCFY3.05%
SpS5.48
BVpS8.61
TBVpS5.75
PEG (NY)2.46
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 | 8.34 |
F-Score7
WACC9.45%
ROIC/WACC0.63
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 Y17.7%
EPS Next 2Y23.05%
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 5Y2.22%
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%