📊 CGNX Key Takeaways
Is Cognex Corp. (CGNX) a Good Investment?
Cognex demonstrates solid fundamental strength with robust profitability (66.9% gross margin, 11.5% net margin) and healthy year-over-year growth (8.7% revenue, 9.7% EPS growth). The company maintains an exceptionally strong balance sheet with zero long-term debt, substantial free cash flow generation ($236.8M, 23.8% FCF margin), and excellent liquidity (3.80x current ratio), positioning it well for strategic investments and shareholder returns.
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.
Why Buy Cognex Corp. Stock? CGNX Key Strengths
- Exceptional gross margin of 66.9% indicates pricing power and operational efficiency in manufacturing/detection technology
- Strong free cash flow generation of $236.8M (23.8% of revenue) exceeds capex needs by 27x, providing financial flexibility
- Zero long-term debt with $262.9M cash position and 3.80x current ratio reflects fortress-like balance sheet
- Consistent profitability with 11.5% net margin and positive YoY growth across revenue (8.7%) and EPS (9.7%)
- Significant insider activity (30 Form 4 filings in 90 days) may indicate management confidence
- 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
- Modest return on equity (7.7%) and return on assets (5.7%) suggest capital is not being deployed at optimal efficiency despite strong cash generation
- Operating margin of 16.3% is reasonable but leaves room for operational leverage improvement
- Revenue growth of 8.7% is moderate, raising questions about market penetration and competitive positioning in industrial automation sector
- Data freshness date of 2025-12-31 appears inconsistent with analysis date; recommend verification of current reporting period
- 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
- Operating margin expansion relative to revenue growth to assess operational leverage
- Return on equity trend to confirm efficient capital deployment of strong free cash flow
- Year-over-year revenue growth sustainability in industrial automation and vision systems markets
- Capital allocation strategy (dividends, buybacks, acquisitions) to maximize shareholder value
- Operating margin trend
- Revenue growth and free cash flow conversion
Cognex Corp. (CGNX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.80x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $242.5M | $57.5M | $0.33 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CGNX's key strengths?
Claude: Exceptional gross margin of 66.9% indicates pricing power and operational efficiency in manufacturing/detection technology. Strong free cash flow generation of $236.8M (23.8% of revenue) exceeds capex needs by 27x, providing financial flexibility. 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: Modest return on equity (7.7%) and return on assets (5.7%) suggest capital is not being deployed at optimal efficiency despite strong cash generation. Operating margin of 16.3% is reasonable but leaves room for operational leverage improvement. 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 $994.4M.
Does CGNX pay dividends?
Cognex Corp. pays dividends, with $54.6M 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 $0.68.
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 rating reflects both perspectives for balanced insights.
Is CGNX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cognex Corp. has a BUY rating 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 7.7% (sector avg: 15%), net margin of 11.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CGNX stock in 2026?
Our dual AI analysis gives Cognex Corp. a combined BUY rating 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 $245.5M, with capital expenditures of $8.7M. FCF margin is 23.8%.
How does CGNX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.5% (avg: 10%), ROE 7.7% (avg: 15%), current ratio 3.80 (avg: 1.8).