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Fundamental analysis: Cognex Corporation (CGNX)

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been growing at a low pace. It's been almost average when measured against peer companies.
  • Cognex Corporation business shows some variation, there's some risk. It looks somewhat worse than rivals.

Margins score: 9.2

  • CGNX profit margins -on goods and services sold- are usually huge. They stand top-notch against rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 7.0

  • Cognex Corporation profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
  • In recent years, earnings -on operations- have been growing at an excellent step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was slightly better than rivals.
  • In the previous years, growth on total net profit has been average, and below average when measured against peer companies.
  • Earnings per share have grown at a normal rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 6.3

  • CGNX managed to pay little to no income taxes on profits made in the past years. It's been slightly better than peers.
  • Research and development expenses consume a moderate portion of revenues. It's weak when measured against competitors.
  • The company grows sparsely in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 9.5

  • Cognex Corporation usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 6.6

  • CGNX usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands more than average in relation to rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is more than average in relation to industry peers.
  • In the past twelve months it paid low dividends, considering the current stock price. It came slightly worse than competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved a slight improvement compared to similar firms.
  • The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks mediocre against comparable companies.
  • The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks substantially worse when measured against competitors.

Balance Sheet score: 5.5

  • Cognex Corporation intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be rather normal in relation to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks more than average in relation to peers.
  • Normally has approximately four months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes higher than six months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers before a month since the purchase. It ranks almost average when measured against industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's lacking compared to similar companies.
  • To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks great when measured against comparable enterprises.
  • Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 5.3

  • Cognex Corporation looks very expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly better than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
  • In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.8


CGNX logos

Company at a glance: Cognex Corporation (CGNX)

Sector, industry: Technology, Scientific & Technical Instruments

Market Cap: 7.78 billions

Revenues TTM: 1.09 billions

Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks worldwide. Its machine vision products are used to automate the manufacturing and tracking of discrete items, including mobile phones, aspirin bottles, and automobile tires by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. The company offers VisionPro software, a suite of patented vision tools for advanced programming; QuickBuild that allows customers to build vision applications with a graphical, flowchart-based programming interface; and Cognex deep learning vision software. It also provides a range of inspection tasks, including part location, identification, measurement, assembly verification, and robotic guidance; vision sensors for vision applications, such as checking the presence and size of parts; and the In-Sight product line of vision systems and sensors. In addition, the company offers DataMan, an image-based barcode readers and barcode verifiers. It sells its products to consumer electronics, automotive, consumer products, food and beverage, pharmaceuticals, and medical devices industries, as well as through a network of distributors and integrators. Cognex Corporation was incorporated in 1981 and is headquartered in Natick, Massachusetts.

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Superb).