Cognex (CGNX) AI Stock Analysis

• Market Cap: $4.62B
• Dividend Yield: 1.14%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 44.4
• Beta (1Y): 1.39
• Revenue Growth: 9.19%
• EPS Growth: -5.77%
• Country: US
• Employees: 2,914
• Sector: Technology
• Sector Strength: 65
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.61
• Shares Outstanding: 169,370,130
• 10 Day Avg. Volume: 3,408,724
• 30 Day Avg. Volume: 3,378,446
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.60
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.60
• Price Target Upside: 38.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Cognex's overall stock score reflects a balance between strong financial health and cash flow generation, and challenges in technical performance and valuation. The company's strategic initiatives in AI and logistics are promising, but a high P/E ratio and current bearish technical indicators suggest caution. Earnings call insights show both growth opportunities and sector-specific challenges.

Positive Factors

Market Demand

End market demand is holding up, with logistics still expected to show strong growth in 2025.

Operational Efficiency

Better opex containment and strategic capital deployment.

Revenue Performance

Q1 revenues came in above the midpoint of the range, with stronger adj. EBITDA on better op-ex control.

Negative Factors

Earnings Consistency

EPS has been unable to break above the roughly 75c to $1.50 range going back 15 years.

Gross Margin Concerns

Much of the recent decline in gross margin was mix related, with Moritex and logistics growing faster than the fleet average.

Growth Challenges

After the 20+% growth in 2021 post Covid, growth has been roughly +1%, -16%, +2%, and we model ~5% this year and 9% next year - all well below a 15% normalized framework that has only been exceeded 3 times since 2014.

Cognex Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Cognex makes money primarily through the sale of its machine vision products and solutions. The company's revenue streams are largely derived from product sales, which include vision systems, vision software, and vision sensors. These products are sold directly to manufacturers or through a network of distributors and integrators. Additionally, Cognex offers support and maintenance services, which provide a recurring revenue stream. The company leverages significant partnerships with system integrators and OEMs (Original Equipment Manufacturers) to expand its market reach. Cognex's revenue is also influenced by its continuous investment in research and development, enabling it to innovate and maintain a competitive edge in the rapidly evolving machine vision industry.

Cognex Financial Statement Overview

Summary

Cognex exhibits strong financial fundamentals with solid revenue growth, a healthy balance sheet characterized by low leverage, and robust cash flow generation. While profitability margins have faced some pressure, the company's financial position remains stable, supported by strong equity and cash reserves. Continued focus on cost management and profitability improvement could enhance financial performance.

Income Statement

Cognex has experienced a healthy revenue growth rate of 9.17% from 2023 to 2024. However, the gross profit margin has slightly declined from 71.79% in 2023 to 68.43% in 2024, indicating increased cost pressures. The net profit margin also decreased from 13.52% in 2023 to 11.61% in 2024, reflecting a reduction in profitability. Despite these challenges, the company maintains a stable EBIT margin of 12.58% and EBITDA margin of 12.58% in 2024, though both are lower compared to prior years.

Balance Sheet

Cognex's balance sheet demonstrates strong financial health with a low debt-to-equity ratio of 0.05. The equity ratio remains robust at 76.18%, indicating a solid capital structure. Although the return on equity (ROE) has decreased to 7.00% in 2024 from 7.53% in 2023, it still reflects efficient use of shareholder funds. The company maintains a strong liquidity position with considerable cash reserves.

Cash Flow

Cognex shows a significant improvement in free cash flow, increasing by 49.17% from 2023 to 2024. The operating cash flow to net income ratio is 1.40, indicating healthy cash flow generation relative to net income. However, the free cash flow to net income ratio of 1.26 suggests that a considerable portion of net income is being converted to free cash flow, which is positive for financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
914.51M	837.55M	1.01B	1.04B	811.02M
	Gross Profit
625.79M	601.24M	721.90M	759.83M	604.60M
	EBIT
115.06M	130.70M	246.23M	315.10M	170.53M
	EBITDA
115.06M	144.58M	288.29M	335.38M	232.53M
	Net Income Common Stockholders
106.17M	113.23M	215.53M	279.88M	176.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.09M	332.05M	854.25M	907.36M	372.31M
	Total Assets
1.99B	2.02B	1.96B	2.00B	1.80B
	Total Debt
70.22M	78.60M	48.21M	25.58M	26.23M
	Net Debt
-115.88M	-124.05M	-806.04M	-881.78M	-242.84M
	Total Liabilities
475.35M	513.06M	519.75M	573.57M	538.50M
	Stockholders Equity
1.52B	1.50B	1.44B	1.43B	1.26B
Cash Flow		Free Cash Flow
134.04M	89.84M	223.74M	298.61M	229.10M
	Operating Cash Flow
149.08M	112.92M	243.41M	314.06M	242.40M
	Investing Cash Flow
-38.97M	32.27M	-4.45M	-252.54M	169.44M
	Financing Cash Flow
-118.42M	-125.61M	-240.37M	-141.62M	-316.87M

Cognex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGNX, the sentiment is Negative. The current price of 27.82 is above the 20-day moving average (MA) of 25.12, below the 50-day MA of 29.13, and below the 200-day MA of 36.99, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGNX.

Cognex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRI	79 Outperform	$4.92B	20.85	17.70%	―	12.29%	147.67%
ESE	78 Outperform	$4.04B	36.70	9.22%	0.20%	8.94%	18.56%
MKSI	72 Outperform	$4.73B	24.96	7.93%	1.25%	-0.99%	―
VNT	68 Neutral	$4.72B	11.59	43.49%	0.31%	-3.75%	13.76%
CGNX	67 Neutral	$4.62B	44.38	7.03%	1.14%	9.19%	-5.77%
NOVT	66 Neutral	$4.34B	68.09	9.03%	―	7.67%	-12.33%
Sector *	59 Neutral	$10.75B	10.37	-6.64%	3.00%	7.30%	-12.02%

Cognex Corporate Events

Cognex Reports Q1 2025 Financial Results

On April 30, 2025, Cognex Corporation announced its financial results for the first quarter of 2025, reporting a 2% increase in revenue year-on-year, or 5% on a constant-currency basis, driven by its logistics and semiconductor businesses. The company also declared a quarterly cash dividend of $0.08 per share and announced a CEO transition, with Matt Moschner set to succeed Robert J. Willett as CEO on June 27, 2025. Despite economic uncertainties and a downturn in the automotive market, Cognex maintained strong financial performance with a significant increase in operating income and net income per diluted share compared to the previous year.

Spark’s Take on CGNX Stock

According to Spark, TipRanks’ AI Analyst, CGNX is a Neutral.

Cognex’s overall stock score reflects a balance between strong financial health and cash flow generation, and challenges in technical performance and valuation. The company’s strategic initiatives in AI and logistics are promising, but high P/E ratio and current bearish technical indicators suggest caution. Earnings call insights show both growth opportunities and sector-specific challenges.

To see Spark’s full report on CGNX stock, click here.

Cognex Appoints New President Amid Leadership Restructure

On February 20, 2025, Cognex Corporation appointed Matthew Moschner as the new President and Chief Operating Officer, succeeding Robert Willett in the presidential role. This leadership change involves Mr. Moschner overseeing global engineering, products, sales, and operations, after successfully managing key roles and integrations, including the significant acquisition of Moritex in 2023. Alongside this appointment, the Cognex Board amended its by-laws to allow the roles of CEO and President to be held by separate individuals, marking a strategic shift in its executive structure.