Cognex Corporation Fundamental Analysis (NASDAQ: CGNX)
Cognex Corporation Fundamental Analysis (NASDAQ: CGNX)
Cognex Corporation (NASDAQ: CGNX) shows moderate financial fundamentals with a PE ratio of 36.15, profit margin of 21.50%, and ROE of 15.31%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 8.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CGNX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCGNX demonstrates superior asset utilization.
Valuation Score
ModerateCGNX shows balanced valuation metrics.
Growth Score
ModerateCGNX shows steady but slowing expansion.
Financial Health Score
ExcellentCGNX maintains a strong and stable balance sheet.
Profitability Score
ExcellentCGNX achieves industry-leading margins.
Key Financial Metrics
Is CGNX Expensive or Cheap?
P/E Ratio
CGNX trades at 36.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CGNX's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values Cognex Corporation at 5.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.06 times EBITDA. This signals the market has high growth expectations.
How Well Does CGNX Make Money?
Net Profit Margin
For every $100 in sales, Cognex Corporation keeps $21.50 as profit after all expenses.
Operating Margin
Core operations generate 25.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.31 in profit for every $100 of shareholder equity.
ROA
Cognex Corporation generates $10.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cognex Corporation generates strong operating cash flow of $295.68M, reflecting robust business health.
Free Cash Flow
Cognex Corporation generates strong free cash flow of $286.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.70 in free cash annually.
FCF Yield
CGNX converts 3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How CGNX Stacks Against Its Sector Peers
| Metric | CGNX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.15 | 32.70 | Worse (Expensive) |
| ROE | 15.31% | 758.00% | Weak |
| Net Margin | 21.50% | -4312.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 5.04 | 12.15 | Strong Liquidity |
| ROA | 10.63% | 1067467.00% | Weak |
CGNX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cognex Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.57%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-32.94%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
4.56%
Industry Style: Growth, Innovation, High Beta
Growing