Cognex Corp. (CGNX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

KLA Corp.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

Cognex Corp.

NCR Voyix Corp.

Emerson Electric Co.

Onto Innovation, Inc.

Novanta, Inc.

Fortive Corp.

Sensata Technologies Holding Plc

Why is Cognex Corp. ?

High Management Efficiency with a high ROE of 13.46%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 3.73% of over the last 5 years

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at -9.63 %
CASH AND EQV(HY) Lowest at USD 428.65 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 5.23 times

With ROE of 8.05%, it has a expensive valuation with a 3.52 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.08%, its profits have risen by 16.8% ; the PEG ratio of the company is 2.4

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.08% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cognex Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cognex Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cognex Corp.

-0.92%

-0.28

48.61%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.16%

EBIT Growth (5y)

3.73%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.59

Tax Ratio

16.91%

Dividend Payout Ratio

49.59%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

19.23%

ROE (avg)

13.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.52

EV to EBIT

38.54

EV to EBITDA

30.68

EV to Capital Employed

3.90

EV to Sales

5.32

PEG Ratio

2.42

Dividend Yield

2.14%

ROCE (Latest)

10.11%

ROE (Latest)

8.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET SALES(Q)

Highest at USD 249.09 MM

OPERATING PROFIT(Q)

Highest at USD 51.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.65 %

PRE-TAX PROFIT(Q)

Highest at USD 48.48 MM

NET PROFIT(Q)

Highest at USD 40.87 MM

EPS(Q)

Highest at USD 0.24

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -9.63 %

CASH AND EQV(HY)

Lowest at USD 428.65 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.23 times

Here's what is working for Cognex Corp.

Net Sales

Highest at USD 249.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 51.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 20.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 48.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 40.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 40.87 MM has Grown at 40.43%

over average net sales of the previous four periods of USD 29.1 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Cognex Corp.

Debt-Equity Ratio

Highest at -9.63 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 428.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio