Cognex (CGNX) AI Stock Analysis

• Market Cap: $6.17B
• Dividend Yield: 0.91%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 56.9
• 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: 2,207,789
• 30 Day Avg. Volume: 1,791,443
• 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: 1.21
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 11.38
• Enterprise Value/Ebitda: 38.44
• 1Y Price Target: $46.08
• Price Target Upside: 28.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $42.00 ▲(17.45% Upside)

Cognex's strong financial performance and positive earnings call guidance are significant strengths, supported by robust cash flow and strategic investments in AI technology. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and lacks strong momentum. The positive corporate events further bolster the outlook, but operational challenges and market uncertainties remain concerns.

Positive Factors

Revenue Growth

Consistent revenue growth and improved EBITDA margins indicate strong market demand and effective cost management, supporting long-term business expansion.

Product Innovation

Innovative product launches like SLX expand market reach and enhance competitive positioning, driving future growth in machine vision applications.

Cash Flow Generation

Strong cash flow generation ensures financial flexibility, enabling strategic investments and shareholder returns, bolstering long-term financial health.

Negative Factors

Automotive Market Weakness

Continued challenges in the automotive sector could hinder revenue diversification and growth, impacting overall performance in this key market segment.

Semiconductor Market Caution

Caution in the semiconductor market may limit growth opportunities and revenue potential, affecting Cognex's performance in this critical industry.

Geopolitical and Macroeconomic Uncertainty

Ongoing geopolitical and macroeconomic uncertainties pose risks to market stability and growth, potentially impacting Cognex's strategic planning and operations.

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 products and software solutions. The company's revenue model is centered around the direct sale of hardware and software, as well as ongoing support and maintenance services. Key revenue streams include product sales, which contribute the majority of the company's income, and software licenses for its vision system products. Additionally, Cognex benefits from recurring revenue through maintenance contracts and service agreements that provide ongoing support to its customers. The company also engages in partnerships with other technology and manufacturing firms to enhance its product offerings and expand its market reach, further contributing to its earnings. Economic conditions, manufacturing trends, and demand for automation solutions play significant roles in influencing Cognex's revenue performance.

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	194.55M	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: 35.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 35.76 is below the 20-day moving average (MA) of 37.23, below the 50-day MA of 40.58, and below the 200-day MA of 36.02, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, 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
SANM	79 Outperform	$8.01B	32.06	10.81%	―	7.40%	13.79%
BMI	78 Outperform	$5.42B	39.21	21.45%	0.80%	12.11%	16.45%
MKSI	75 Outperform	$10.50B	38.00	11.12%	0.59%	8.13%	780.20%
CGNX	70 Outperform	$6.17B	56.88	7.21%	0.91%	10.23%	25.53%
ITRI	70 Outperform	$4.37B	17.03	16.93%	―	0.14%	14.12%
VNT	67 Neutral	$5.47B	13.84	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 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.