39.05 USD
-0.41 (-1.04%)
39.25 USD
+0.2 (+0.51%)
Taking everything into account, CGNX scores 7 out of 10 in our fundamental rating. CGNX was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. CGNX has an excellent financial health rating, but there are some minor concerns on its profitability. CGNX has a correct valuation and a medium 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.
- Each year in the past 5 years CGNX has been profitable.
- CGNX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 5.50%, CGNX is doing good in the industry, outperforming 72.36% of the companies in the same industry.
- CGNX has a better Return On Equity (7.39%) than 64.23% of its industry peers.
- The Return On Invested Capital of CGNX (7.09%) is better than 72.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CGNX is in line with the industry average of 8.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 7.39% | ||
| ROIC | 7.09% |
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
- Looking at the Profit Margin, with a value of 11.33%, CGNX belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
- CGNX's Profit Margin has declined in the last couple of years.
- CGNX has a Operating Margin of 16.27%. This is amongst the best in the industry. CGNX outperforms 90.24% of its industry peers.
- In the last couple of years the Operating Margin of CGNX has declined.
- CGNX has a Gross Margin of 67.65%. This is amongst the best in the industry. CGNX outperforms 97.56% of its industry peers.
- CGNX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 11.33% | ||
| GM | 67.65% |
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.
- 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
- An Altman-Z score of 8.99 indicates that CGNX is not in any danger for bankruptcy at the moment.
- CGNX has a better Altman-Z score (8.99) than 83.74% 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 | 8.99 |
ROIC/WACC0.8
WACC8.88%
2.3 Liquidity
- CGNX has a Current Ratio of 3.96. This indicates that CGNX is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of CGNX (3.96) is better than 73.17% of its industry peers.
- A Quick Ratio of 3.11 indicates that CGNX has no problem at all paying its short term obligations.
- CGNX's Quick ratio of 3.11 is fine compared to the rest of the industry. CGNX outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.96 | ||
| Quick Ratio | 3.11 |
3. Growth
3.1 Past
- CGNX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.62%, which is quite impressive.
- Measured over the past years, CGNX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.03% on average per year.
- The Revenue has grown by 10.23% in the past year. This is quite good.
- Measured over the past years, CGNX shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)44.62%
EPS 3Y-20.81%
EPS 5Y-2.03%
EPS Q2Q%65%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y-4.11%
Revenue growth 5Y4.74%
Sales Q2Q%17.96%
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 30.44% on average per year.
- Based on estimates for the next years, CGNX will show a quite strong growth in Revenue. The Revenue will grow by 9.52% on average per year.
EPS Next Y32.59%
EPS Next 2Y25.12%
EPS Next 3Y23.74%
EPS Next 5Y30.44%
Revenue Next Year8.38%
Revenue Next 2Y7.63%
Revenue Next 3Y8.17%
Revenue Next 5Y9.52%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 41.54, which means the current valuation is very expensive for CGNX.
- CGNX's Price/Earnings is on the same level as the industry average.
- CGNX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 33.71 indicates a quite expensive valuation of CGNX.
- CGNX's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of CGNX to the average of the S&P500 Index (25.83), we can say CGNX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.54 | ||
| Fwd PE | 33.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGNX is on the same level as its industry peers.
- 68.29% of the companies in the same industry are more expensive than CGNX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.61 | ||
| EV/EBITDA | 32.48 |
4.3 Compensation for Growth
- CGNX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 23.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y25.12%
EPS Next 3Y23.74%
5. Dividend
5.1 Amount
- CGNX has a yearly dividend return of 0.82%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.46, CGNX pays a better dividend. On top of this CGNX pays more dividend than 84.55% of the companies listed in the same industry.
- With a Dividend Yield of 0.82, CGNX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
- CGNX pays out 49.16% of its income as dividend. 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.
DP49.16%
EPS Next 2Y25.12%
EPS Next 3Y23.74%
COGNEX CORP / CGNX FAQ
What is the fundamental rating for CGNX stock?
ChartMill assigns a fundamental rating of 7 / 10 to CGNX.
What is the valuation status for CGNX stock?
ChartMill assigns a valuation rating of 4 / 10 to COGNEX CORP (CGNX). This can be considered as Fairly Valued.
What is the profitability of CGNX stock?
COGNEX CORP (CGNX) has a profitability rating of 6 / 10.
What is the financial health of COGNEX CORP (CGNX) stock?
The financial health rating of COGNEX CORP (CGNX) is 9 / 10.
How sustainable is the dividend of COGNEX CORP (CGNX) stock?
The dividend rating of COGNEX CORP (CGNX) is 5 / 10 and the dividend payout ratio is 49.16%.