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Cognex Corporation (CGNX)

Overvalued
TechnologyScientific & Technical InstrumentsUnited States

Fundamental

63

Price

$60.65

Market Cap

$10.20B

Part 1 · What the company is worth

Overview

Cognex Corporation provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks in the United States, Europe, Greater China, and internationally. Its machine vision products are used to automate the manufacture and distribution of discrete items, such as mobile phones, automotive components, and e-commerce packages, by locating, identifying, inspecting, and measuring them. The company offers VisionPro software, a suite of patented vision tools for traditional rule-based tools and deep learning-enabled tools for advanced programming; vision systems that combine smart cameras and software to perform a wide range of tasks, including part location, identification, measurement, assembly verification, and robotic guidance; OneVision, a cloud-based platform designed to transform how manufacturers build, train, and scale AI-powered vision applications; In-Sight product line of vision systems and sensors; QuickBuild, which allows customers to build vision applications with a graphical and flowchart-based programming interface; DataMan, an image-based barcode reader for fixed-mount and handheld models, as well as barcode verifiers; and vision accessories, such as industrial cameras, lenses, lighting, vision controllers, frame grabbers, and I/O cards. It sells its products to the automotive, logistics, packaging, consumer electronics, medical-related, semiconductor, and consumer products industries. The company was incorporated in 1981 and is headquartered in Natick, Massachusetts.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 34.1Score: 76Market cap: $17.27B

Zebra sells fixed industrial scanners and machine vision products to the warehouse and parcel-logistics customers that are Cognex's largest end market for barcode reading.

P/E: 29.3Score: 81Market cap: $28.32B

Through Teledyne DALSA and Teledyne Lumenera it supplies industrial cameras, frame grabbers and vision software for the same inspection applications Cognex addresses.

Keyence Corporation (キーエンス)6861

Keyence is Cognex's closest rival in factory-floor machine vision systems, vision sensors and code readers, selling to the same automotive, electronics and general manufacturing plants.

Omron Corporation (オムロン)6645

Omron's FH-series vision systems and vision sensors compete for the same in-line inspection budgets in automated factories, often bundled with its wider automation offering.

Basler AGBSL

Basler competes in industrial cameras and vision components, the part of the market Cognex expanded into with its Moritex optics business.

Datalogic S.p.A.DAL

Datalogic makes fixed and handheld industrial barcode readers and vision sensors sold to the same manufacturing and logistics customers as Cognex's DataMan line.

Balance Sheet & Liquidity

Revenue

$1.09B

Trailing 12 months (through 7/5/2026)

Net Income

$175M

Trailing 12 months (through 7/5/2026)

Free Cash Flow

$237M

Total Equity

$1.49B

Total Liabilities

$525M

Current Ratio

3.93

Interest Coverage

-

Debt/EBITDA

0.27

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseOvervalued

Fair Value

$40.30

Current Price

$60.65

Margin of Safety

-50.5%

Fair Value Range

$26.19 - $54.40

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$79.58
Discounted cash flow (DCF):$17.44
Earnings multiple (P/E):$32.15
Graham growth formula:$7.78
Earnings power value (EPV):$8.69
Justified P/B:$4.13
Dividend discount (Gordon):$3.89
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$40.19
Revenue multiple:$32.70
Analyst Consensus:Buy (20B / 8H / 0S)
Last Earnings Surprise:+4.00%

Valuation Metrics

P/E Ratio

58.32

ROE

7.7%

P/B Ratio

6.26

P/FCF

38.03

Gross Margin

68.9%

ROIC

9.6%

Profitability Radar

Value Creation (Economic Moat)

ROIC

9.6%

WACC

12.6%

ROIC − WACC

-3.0 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • Price CAGR 6.23%
  • ROIC 9.6%
  • Gross Margin 68.9%
  • Debt/Equity ratio
  • Operating Margin 21.9%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 8.0%
  • Analyst Consensus 71% Buy
  • Earnings Surprise avg 17.5%
  • Earnings Quality (OCF/NI) 1.58
  • Share Dilution -1.7%
  • Net Margin Trend 16.1% vs 13.1%
  • Piotroski F-Score 7/9

Failed (7)

  • EPS CAGR 0.18%
  • P/FCF 38.03
  • P/B Ratio 6.26
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 4.2%

Unavailable (3)

  • Dividend Payout NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.58

High quality: earnings backed by cash

Share Dilution

-1.7%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Matthew MoschnerPresident, CEO & Director38
Mr. Dennis S. FehrSenior VP of Finance & CFO44
Mr. Carl W. Gerst IIIExecutive Vice President of Global Sales & Products57
Ms. Sheila M. DiPalma CPAExecutive VP of Employee Services & Chief Culture Officer58
Dr. Robert J. Shillman Ph.D.Founder, Chairman Emeritus & Adviser78
Mr. Mike BowdoinVice President of Operations-
Ms. Laura Ann MacDonaldVP of Finance, Corporate Controller & Interim Principal Acc Officer56
Ms. Greer AvivHead of Investor Relations-
Mr. Mark T. FennellVP, Chief Legal Officer & Corporate Secretary-
Ms. Robin PrattCorporate Communications Contractor-

Audit Risk

7

Board Risk

3

Compensation Risk

6

Shareholder Rights Risk

6

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-12

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-06

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-22

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for CGNX, sourced from Markets Gazette.

  • 3/9/2026NEUTRAL
    Assessing Cognex: Insights From 10 Financial Analysts

    Cognex Corporation (CGNX) is under review by financial analysts, with recent actions showing mixed sentiment. In March 2022, Goldman Sachs maintained a 'Sell' rating. Prior to that, in February 2022, Morgan Stanley maintained an 'Equal-Weight' rating, and JP Morgan upgraded the stock from 'Underweight' to 'Neutral'. This divergence in analyst opinions suggests a lack of clear consensus on the company's future performance, making it a neutral signal for investors at this time.

  • 2/24/2026POSITIVE
    $100 Invested In Cognex 20 Years Ago Would Be Worth This Much Today

    A recent analysis, hinted at by a provocative headline, suggests that a hypothetical $100 investment in Cognex Corporation two decades ago would today command a substantially higher value. While the precise figures remain undisclosed in the snippet, the implication points to Cognex's remarkable long-term growth trajectory and its capacity to generate significant returns for early investors. This historical performance underscores the company's resilience and innovation in the machine vision industry, positioning it as a compelling case study for patient, growth-oriented portfolios. Investors often look to such examples as indicators of a company's fundamental strength and future potential, even if past performance is not a guarantee of future results.

  • 2/22/2026NEGATIVE
    Is Cognex Stock a Buy or Sell After a Director Dumped Shares Worth $128,000?

    A cautionary signal has emerged from Cognex Corporation, a global leader in machine vision systems and industrial automation. A company director recently sold shares worth $128,000. While the amount itself is not staggering, the transaction is noteworthy given the stock's strong performance over the past year. Insider sales are often interpreted by the market as a potential indicator that a stock's valuation may have peaked or that future challenges lie ahead. Investors might question the management's confidence in near-term growth prospects. This event, while not a definitive red flag, warrants a closer look at the company's fundamentals and encourages monitoring for any further sales by key executives, which could reinforce a bearish signal.

via Markets Gazette