What Our Analysts Know About Cognex

Cognex logged a -4.7% change during today's afternoon session, and is now trading at a price of $50.7 per share. The S&P 500 index moved 0.0% and the Nasdaq posted a 0.2% change. CGNX's trading volume is 550,555 compared to the stock's average volume of 835,316.

Cognex shares moved -22.9% over the last 52 weeks, with a high of $80.3 and a low of $40.21. During this time, the stock lagged the S&P 500 index by -10.2%. As of January 2022, the company's 50-day average price is $48.7884. Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks worldwide. The mid-cap Technology company has 2,257 full time employees and is based in Natick, MA. Cognex has returned a 0.5% dividend yield over the last 12 months.

Snapshot of the Company's Decent Operating Margins with a Positive Growth Rate:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $726 $811 $1,037
Revenue Growth n/a 11.77% 27.88%
Gross Margins 73.8% 74.6% 73.3%
Gross Margins Growth n/a 1.08% -1.74%
Operating Margins 19.6% 25.4% 30.4%
Operating Margins Growth n/a 29.59% 19.69%
Earnings Per Share $1.16 $1.0 $1.56
EPS Growth n/a -13.79% 56.0%
Free Cash Flow (MM) $231 $229 $299
FCF Growth n/a -1.03% 30.34%
Capital Expenditures (MM) -$22 -$13 -$15
Net Debt / EBITDA -1.03 -0.97 -0.49

Cognex Is Expensive:

Compared to the Technology sector's average of 26.5, Cognex has a trailing twelve month P/E ratio of 41.9 and, according to its EPS guidance of 1.45, an expected P/E ratio of 35.0. Cognex's PEG ratio is 3.59 based on its 11.67% average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

Cognex's P/B ratio is 6.3 compared to its sector average of 5.57, meaning that the company is likely overvalued in terms of its equity. The company's shares are currently trading 238.7% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.24 * 8.033) = $14.97

Cognex Is the Subject of Mixed Market Indicators:

16 analysts are following Cognex and have set target prices ranging from $40 to $65 per share. On average, they have given the company a rating of hold. At the current price of $50.7, CGNX is trading -0.47% away from its average analyst target price of $50.94 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 3.2% of the company's shares are tied to short positions. Institutions own 93.9% of Cognex's shares, while the insider ownership rate stands at 3.49%. The biggest shareholder is Blackrock Inc. with a 10% stake in the company worth approximately $836,415,556.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.