📊 CGNX Key Takeaways
Is Cognex Corp. (CGNX) a Good Investment?
Cognex demonstrates exceptional operational profitability with 71.1% gross margins and 19.3% net margins, coupled with consistent 8.7% revenue and 7.8% earnings growth. The company maintains a fortress balance sheet with zero debt, 3.64x current ratio, and strong free cash flow generation of $42.3M, providing financial stability and flexibility.
Cognex shows strong fundamental quality with high gross margins, solid operating profitability, and excellent free cash flow conversion. The balance sheet is exceptionally strong with no long-term debt and ample liquidity, while revenue and earnings are still growing at a healthy mid-to-high single-digit pace. The main limitation is that returns on equity and assets are only moderate, which suggests the company still needs to translate its strong financial position into higher capital efficiency.
Cognex Corp. Key Strengths (CGNX)
- Exceptional profitability margins (71.1% gross, 22.3% operating, 19.3% net) indicating strong pricing power and operational efficiency
- Consistent organic growth with revenue +8.7% YoY and net income +7.8% YoY; EPS growth of +9.7% shows operating leverage
- Fortress balance sheet with zero debt, $237.3M cash reserves, and excellent liquidity (3.64x current ratio, 2.93x quick ratio)
- Strong free cash flow generation of $42.3M (15.8% FCF margin) demonstrates quality earnings and cash conversion
- Industrial instruments sector positioning with established market presence
- High gross margin and solid free cash flow margin indicate strong product economics and disciplined cost structure
- Debt-free balance sheet with strong current and quick ratios provides substantial financial resilience
- Revenue, net income, and diluted EPS are all growing year over year, supporting decent growth quality
CGNX Stock Risks: Cognex Corp. Investment Risks
- Poor capital efficiency metrics: ROE of 3.5% and ROA of 2.6% despite strong margins suggest suboptimal capital deployment or underutilized assets
- Conservative capital allocation: minimal CapEx ($2.8M) and accumulated cash may indicate lack of growth investments or M&A activity
- Industrial sector cyclicality exposure; current stability does not guarantee future demand resilience
- Elevated insider trading activity (29 Form 4 filings in 90 days) warrants monitoring for insider sentiment or transaction rationale
- Operating and net margins are meaningfully below gross margin, leaving execution risk if costs rise or growth slows
- ROE and ROA are only moderate relative to the size of the equity base and asset base
- Growth is positive but not rapid, so fundamentals depend on sustaining margin discipline and cash generation
Key Metrics to Watch
- Return on Equity and Return on Assets trends—critical to assess whether capital deployment improves
- Free cash flow sustainability and capital allocation decisions—dividend growth, share buybacks, or strategic investments
- Revenue growth trajectory and operating margin stability—confirm organic growth maintains in face of potential sector headwinds
- Operating margin trend
- Revenue growth and free cash flow conversion
Cognex Corp. (CGNX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.64x current ratio provides a solid financial cushion.
CGNX Profit Margin, ROE & Profitability Analysis
CGNX vs Industrial Sector: How Cognex Corp. Compares
How Cognex Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cognex Corp. Stock Overvalued? CGNX Valuation Analysis 2026
Based on fundamental analysis, Cognex Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cognex Corp. Balance Sheet: CGNX Debt, Cash & Liquidity
CGNX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cognex Corp.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $0.65 reflects profitable operations.
CGNX Revenue Growth, EPS Growth & YoY Performance
CGNX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $216.0M | $23.6M | $0.14 |
| Q3 2025 | $234.7M | $17.7M | $0.10 |
| Q2 2025 | $239.3M | $36.2M | $0.21 |
| Q1 2025 | $210.8M | $12.0M | $0.07 |
| Q3 2024 | $197.2M | $18.9M | $0.11 |
| Q2 2024 | $239.3M | $36.2M | $0.21 |
| Q1 2024 | $201.1M | $12.0M | $0.07 |
| Q3 2023 | $197.2M | $18.9M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cognex Corp. Dividends, Buybacks & Capital Allocation
CGNX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cognex Corp. (CIK: 0000851205)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CGNX
What is the AI rating for CGNX?
Cognex Corp. (CGNX) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CGNX's key strengths?
Claude: Exceptional profitability margins (71.1% gross, 22.3% operating, 19.3% net) indicating strong pricing power and operational efficiency. Consistent organic growth with revenue +8.7% YoY and net income +7.8% YoY; EPS growth of +9.7% shows operating leverage. ChatGPT: High gross margin and solid free cash flow margin indicate strong product economics and disciplined cost structure. Debt-free balance sheet with strong current and quick ratios provides substantial financial resilience.
What are the risks of investing in CGNX?
Claude: Poor capital efficiency metrics: ROE of 3.5% and ROA of 2.6% despite strong margins suggest suboptimal capital deployment or underutilized assets. Conservative capital allocation: minimal CapEx ($2.8M) and accumulated cash may indicate lack of growth investments or M&A activity. ChatGPT: Operating and net margins are meaningfully below gross margin, leaving execution risk if costs rise or growth slows. ROE and ROA are only moderate relative to the size of the equity base and asset base.
What is CGNX's revenue and growth?
Cognex Corp. reported revenue of $268.4M.
Does CGNX pay dividends?
Cognex Corp. pays dividends, with $14.2M distributed to shareholders in the trailing twelve months.
Where can I find CGNX SEC filings?
Official SEC filings for Cognex Corp. (CIK: 0000851205) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CGNX's EPS?
Cognex Corp. has a diluted EPS of $0.31.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CGNX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Cognex Corp. has a A grade with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CGNX stock overvalued or undervalued?
Valuation metrics for CGNX: ROE of 3.5% (sector avg: 15%), net margin of 19.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CGNX's AI grade for 2026?
Our dual AI analysis gives Cognex Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CGNX's free cash flow?
Cognex Corp.'s operating cash flow is $45.1M, with capital expenditures of $2.8M. FCF margin is 15.8%.
How does CGNX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 19.3% (avg: 10%), ROE 3.5% (avg: 15%), current ratio 3.64 (avg: 1.8).