Cognex (CGNX) AI Stock Analysis

• Market Cap: $6.58B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 60.6
• Beta (1Y): 1.33
• Revenue Growth: 10.23%
• EPS Growth: 25.53%
• Country: US
• Employees: 2,914
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.33
• Shares Outstanding: 167,598,050
• 10 Day Avg. Volume: 2,194,175
• 30 Day Avg. Volume: 1,858,737
• PEG Ratio: -9.55
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 45.87
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 7.75
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: 40.27
• 1Y Price Target: $47.11
• Price Target Upside: 22.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $45.00 ▲(16.64% Upside)

Cognex's overall stock score is driven by strong financial performance and positive earnings call guidance, which highlight robust revenue growth and strategic advancements. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to short-term bearish momentum. The company's ability to navigate operational challenges and macroeconomic uncertainties will be crucial for sustaining long-term growth.

Positive Factors

Strong Financial Performance

Cognex's robust financial performance with double-digit revenue growth and improved EBITDA margin highlights effective cost management and operational efficiency, supporting long-term profitability.

Launch of SLX Product Line

The SLX product line launch expands Cognex's capabilities in AI-driven machine vision, enhancing its competitive edge and opening new market opportunities, which is crucial for sustainable growth.

Logistics Market Growth

Continued growth in the logistics market underscores Cognex's strong market position and the increasing demand for automation, supporting long-term revenue expansion.

Negative Factors

Weakness in Automotive Market

Persistent challenges in the automotive sector could hinder overall revenue growth, as this market remains a significant part of Cognex's business portfolio.

Semiconductor Market Caution

Uncertainty in the semiconductor market may impact Cognex's growth prospects, given its reliance on this sector for a portion of its revenue.

Geopolitical and Macroeconomic Uncertainty

Geopolitical and macroeconomic uncertainties pose risks to Cognex's operations and market performance, potentially affecting strategic planning and revenue stability.

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 generates revenue primarily through the sale of its machine vision systems and software solutions. The company has a diverse revenue model that encompasses direct sales to customers, as well as sales through a network of distributors and integrators. Key revenue streams include the sale of vision systems and sensors, which account for a significant portion of their earnings, alongside software licenses and support services. Additionally, Cognex benefits from recurring revenue through maintenance contracts and software upgrades. The company also engages in strategic partnerships with equipment manufacturers and system integrators, which enhance its market reach and contribute to its earnings by expanding its customer base and providing integrated solutions.

Cognex Financial Statement Overview

Summary

Cognex demonstrates a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage, and cash flow generation is healthy, supporting future growth opportunities. However, there are some operational challenges reflected in the declining EBIT and EBITDA margins, which need to be addressed to sustain long-term profitability.

Income Statement

Cognex has shown a positive revenue growth rate of 4.53% in the TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 67.72%, though slightly lower than historical levels. Net profit margin improved to 13.13%, reflecting better cost management. However, EBIT and EBITDA margins have decreased compared to previous years, suggesting some operational challenges.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.055, indicating low leverage and financial stability. Return on equity is moderate at 8.09%, showing efficient use of equity, though it has decreased from previous years. The equity ratio remains healthy, supporting the company's strong financial position.

Cash Flow

Cognex's cash flow performance is solid, with a significant free cash flow growth of 19.02% in the TTM. The operating cash flow to net income ratio is stable at 1.00, indicating good cash generation relative to profits. The free cash flow to net income ratio is high at 0.94, suggesting efficient cash conversion, although slightly lower than historical levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	971.71M	914.51M	837.55M	1.01B	1.04B	811.02M
Gross Profit	657.35M	625.79M	601.24M	721.90M	759.83M	604.60M
EBITDA	187.02M	147.75M	144.58M	288.29M	335.38M	232.53M
Net Income	110.12M	106.17M	113.23M	215.53M	279.88M	176.19M
Balance Sheet
Total Assets	2.00B	1.99B	2.02B	1.96B	2.00B	1.80B
Cash, Cash Equivalents and Short-Term Investments	300.27M	246.05M	332.05M	400.13M	323.62M	372.31M
Total Debt	78.92M	70.22M	78.60M	39.75M	25.58M	26.23M
Total Liabilities	513.11M	475.35M	513.06M	519.75M	573.57M	538.50M
Stockholders Equity	1.49B	1.52B	1.50B	1.44B	1.43B	1.26B
Cash Flow
Free Cash Flow	213.80M	134.04M	89.84M	223.74M	298.61M	229.10M
Operating Cash Flow	222.02M	149.08M	112.92M	243.41M	314.06M	242.40M
Investing Cash Flow	49.85M	-38.97M	32.27M	-4.45M	-252.54M	169.44M
Financing Cash Flow	-224.95M	-118.42M	-125.61M	-240.37M	-141.62M	-316.87M

Cognex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 38.58 is below the 20-day moving average (MA) of 44.35, below the 50-day MA of 44.81, and above the 200-day MA of 35.91, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 6.36 is Positive, 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
BMI	78 Outperform	$5.54B	40.03	21.45%	0.76%	12.11%	16.45%
SANM	78 Outperform	$9.07B	38.19	10.38%	―	7.40%	13.79%
MKSI	74 Outperform	$10.40B	37.65	11.12%	0.64%	8.13%	780.20%
ITRI	69 Neutral	$4.82B	18.15	16.93%	―	0.14%	14.12%
CGNX	66 Neutral	$6.58B	60.65	7.21%	0.77%	10.23%	25.53%
VNT	63 Neutral	$5.51B	13.94	35.82%	0.27%	1.76%	4.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cognex Corporate Events

Cognex Earnings Call: Strong Growth Amid Challenges

Cognex Corporation’s recent earnings call conveyed a positive sentiment, underscored by robust financial performance, successful product launches, and a recovering market landscape. However, the company acknowledged ongoing challenges in the automotive sector and broader macroeconomic uncertainties that could impact future performance.

Cognex Reports Strong Q3 2025 Earnings Growth

Cognex Corporation is a global leader in industrial machine vision technology, providing AI-enabled solutions for manufacturing and logistics sectors to enhance automation and efficiency. In its third-quarter 2025 earnings report, Cognex announced an 18% year-over-year revenue growth, reaching $277 million, with a significant contribution from its new Solutions Experience product portfolio in Logistics. The company also achieved a net income per diluted share of $0.10 and an adjusted earnings per share of $0.33, marking a 69% increase from the previous year.

Cognex Announces Quarterly Dividend Amid Strong Q3 Results

On October 29, 2025, Cognex Corporation announced a quarterly cash dividend of $0.085 per share, payable on November 28, 2025. The company reported strong financial results for the third quarter of 2025, with an 18% increase in revenue year-over-year, driven by growth in logistics and factory automation. The operating margin improved to 20.9%, and the adjusted EBITDA margin reached 24.9%, the highest since Q2 2023. Cognex’s strategic focus on AI technology and disciplined execution contributed to these results, positioning the company for sustainable margin improvement.

The most recent analyst rating on (CGNX) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Cognex stock, see the CGNX Stock Forecast page.

Cognex Earnings Call: Robust Growth Amid Challenges

Cognex’s recent earnings call showcased a robust financial performance, marked by significant growth in logistics, packaging, and consumer electronics. However, the company continues to face challenges in the automotive and semiconductor sectors, alongside a notable revenue decline in Greater China.

Cognex Reports Strong Q2 2025 Financial Results

Cognex Corporation, a leader in industrial machine vision technology, is renowned for its innovative solutions that enhance manufacturing and distribution efficiency across various industries. In its latest earnings report for the second quarter of 2025, Cognex showcased a steady financial performance with a 4% increase in revenue compared to the previous year, alongside a notable reduction in operating expenses by 3%. The company also launched OneVision, a new cloud platform designed to enhance AI-powered machine vision capabilities.