Corporate Webpages Cognex Corporation
The sad truth is that any stock reviewed by us during this down
market period will have a much harder time getting a positive
rating due to chart technicals and the influence of the broader
market, no matter how good the company is. That appears to be
the situation with Cognex Corp., a company which has a lot of
features we like. Nonetheless, it gets an overall sell rating
due to poor stock performance of late.
One of the first things to catch our eye was the Chairman's
Letter in a recent annual report. That report seemed to
indicate the company's CEO and founder, Dr. Shillman, was a
frustrated pop music performer. The strong hints at this in the
letter added a note of "cute" to the annual report, but did not
impress us as instilling confidence in the company. Still, we
have to point out that modest executive compensations in this
company suggest strong corporate governance. Since that report,
evidently Dr. Shillman has been replaced as CEO by Robert
Willett, who came to the company as Chief Operating Officer in
2008 from Danaher Corporation.
We do not like the fact the company has some anti-takeover
poison pill provisions in its corporate structure.
The company has developed a niche in the electronic test
equipment area which leaves it with few competitors in our
opinion. It supplies laser vision equipment (similar to bar
code readers and scanners) that used in manufacturing assembly
tests for quality control, noteably by the Ford Motor Company
and many others. News for this company consists largely of
introduction of a steady stream of new products, and occasional
patent protection suits.
For some months, Piper Jaffray is one of the analysts which has
been touting Cognex stock with glowing recommendations.
Recently however, Pipe Jaffray downgraded the stock to neutral
(which most traders recognize as a "sell!") with the following
explanation: "CGNX is trading within 2% of our price target and
we see no catalyst to move the shares higher. Roughly 13% of
CGNX revenue came from semiconductor capital equipment which is
currently weak. The company notes that closing large deals in
North America is becoming more challenging. Economic weakness
has created uncertainty which has likely created a pause in
demand for machine vision. Offsetting this is the company's
strong new product momentum, but we think weakness outweighs strengths."
We are somewhat skeptical of Piper Jaffray's "shift" and find
the company's website packed with information about products we
think the world needs and will buy. Our overall Decision Matrix
result we think is temporary but perhaps one should wait to buy
until a reasonable upward momentum is once again established in
the stock, and one should avoid bottom-fishing.
09-27-2011: Cognex Corporation (CGNX): Singing CEO Steps Down
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Cognex Corporation (CGNX ) Sector: Technology
One Vision Drive Industry: Scientific & Technical Instru
Natick, MA 01760-2059 Exchange: Nasdaq
Cognex Corporation, together with its subsidiaries, provides machine
vision products that capture and analyze visual information to automate
tasks, primarily in manufacturing processes. It operates in two divisions,
Modular Vision Systems and Surface Inspection Systems. The Modular Vision
Systems division develops, manufactures, and markets modular vision
systems that are used to automate the manufacture of discrete items, such
as cellular phones, aspirin bottles, and automobile wheels, by locating,
identifying, inspecting, and measuring them during the manufacturing
process. The Surface Inspection Systems division develops, manufactures,
and markets surface inspection vision systems that are used to inspect the
surfaces of materials processed in a continuous fashion, such as metals,
paper, non-wovens, plastics, and glass. The company serves discrete
factory automation, semiconductor and electronics capital equipment, and
surface inspection markets. It sells its products through direct sales
force, and a network of integration and distribution partners. The company
was founded in 1981 and is headquartered in Natick, Massachusetts.
Last Trade: 27.64 52-Week Range: 37.49 - 22.45
Trade Date: 09-25 Avg. Volume: 330,792 Shares
Index Membership: Employees: 824
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (High Concern).
EPS: 1.69 Dividend Amount: $ 0.36 Yield: 1.40%
Ex-Dividend Date: Aug 31, 20 Mkt Cap: $ 1,160,000K
Payout Ratio: 18.00%
Last Split Factor (new for old): 2:1 Split Date: Dec 19, 19
Key Statistics:
Enterprise Value: $ 917,980K Revenue (ttm) : $ 317,700K
Gross Profit: $ 213,100K
Earnings before Income Tax, Depreciation and Amortization: $ 96,480K
Enterprise Value/Revenue (ttm): 2.89 Revenue per Share: $ 7.77
Enterprise Value/EBITDA (ttm): 9.52 Qtrly Rev Growth (y to y): 16.10%
P/E Ratio (fwd projected): 15.62 P/E Ratio (current): 16.34
P/E Growth Ratio (5 yr expected): 1.37 Operating Margin: 27.26%
Price/Sales Ratio: 3.51 Profit Margin: 22.24%
Price/Book Value: 2.06 Book Value: $ 12.84/sh.
Return on Assets: 10.24% Net Income Avl to Common: $ 70,640K
Return on Equity: 15.11% Diluted Earnings/Share: $ 1.69
Qrtly Earnings Growth (yoy): 27.90%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 244,690K Operating Cash Flow:$ 103,140K
Total Debt: $ 0K Lvgd Free Cash Flow:$ 54,020K
Total Debt/Equity: 0.00
Total Cash/Share: $ 5.82
Current Ratio: 6.04
Share Statistics: Stock Price History:
Shares Outstanding: 42,060K Stk 52-Week Change: 21.23%
Float: 38,430K S&P 500 52-Wk Chng: -1.07%
Sh. Short % of Float: 6.10% 50-Day Moving Avg: 30.79
Short Ratio: 4.70 200-Day Moving Avg: 31.77
% Held by Institutions: 86.20% Beta: 1.25
% Held by Insiders: 7.69%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.37 0.41 1.55 1.77
Average Revenue Estimate 0M 85M 323M 359M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 3.121 EPS Growth (Qrtly YoY): 3.815
PEG Ratio (ttm, 5 yr expected): 10.300 P/E Ratio (ttm): 6.303
Revenue Growth (Qrtly YoY): 2.289
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 290,691 175,727 242,680
Cost of Revenue 77,588 56,387 68,427
Gross Profit 213,103 119,340 174,253
Operating Expenses:
Research & Development 33,080 31,132 36,262
Selling, General & Administrative 104,235 96,350 112,629
Non-Recurring Expenses 75 4,526 258
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 75,713 -12,668 25,104
Income from Continuing Operations:
Total Other Income/Expenses Net 390 2,292 10,264
Earnings Before Interest & Taxes 76,103 -10,376 35,368
Interest Expense 0 0 0
Income Before Taxes 76,103 -10,376 35,368
Income Tax Expense 14,722 -5,507 4,869
Minority Interest 0 0 0
Net Income from Continuing Op.s 61,381 -4,869 30,499
Non-recurring Events:
Discontinued Operations 0 0 -3,224
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 61,381 -4,869 27,275
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 61,381 -4,869 27,275
Quarterly Income Statements: All numbers in thousands)
Period Ending Jul3, 2011 Apr3, 2011 Dec31,2010 Oct3, 2010
Total Revenue 83,393 74,394 84,920 74,993
Cost of Revenue 19,379 18,383 24,017 18,913
Gross Profit 64,014 56,011 60,903 56,080
Operating Expenses:
Research & Development 10,506 9,482 8,940 7,961
Selling, General & Adminis. 29,466 29,161 29,018 25,857
Non-Recurring Expenses 0 0 0 -13
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 24,042 17,368 22,945 22,275
Income from Continuing Operations:
Total Other Income/Expenses Net 759 341 43 357
Earnings Before Int. & Taxes 24,801 17,709 22,988 22,632
Interest Expense 0 0 0 0
Income Before Taxes 24,801 17,709 22,988 22,632
Income Tax Expense 5,704 4,073 3,224 4,487
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 19,097 13,636 19,764 18,145
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 19,097 13,636 19,764 18,145
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 19,097 13,636 19,764 18,145
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 33,203 119,831 127,138
Short Term Investments 147,823 55,563 52,559
Net Receivables 52,203 38,657 40,741
Inventory 22,717 16,832 25,063
Other Current Assets 23,059 18,471 18,923
Total Current Assets 279,005 249,354 264,424
Long-Term Investments 102,055 26,633 41,389
Property, Plant & Equipt 29,596 28,576 27,764
Goodwill 82,204 82,604 80,765
Intangible Assets 23,130 28,337 31,278
Accumulated Amortization 0 0 0
Other Assets 1,559 9,722 10,754
Deferred Long Term Asset Charges 15,555 14,643 17,673
Total Assets 533,104 439,869 474,047
Current Liabilities:
Accounts Payable 44,270 23,772 31,621
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 10,162 14,908 19,429
Total Current Liabilities 54,432 38,680 51,050
Long Term Debt 0 0 0
Other Liabilities 5,361 6,741 9,922
Deferred LT Liability Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 59,793 45,421 60,972
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 82 79 79
Retained Earnings 379,826 328,459 345,225
Treasury Stock 0 0 0
Capital Surplus 102,620 69,271 73,280
Other Stockholder Equity -9,217 -3,361 -5,509
Total Stockholder Equity 473,311 394,448 413,075
Net Tangible Assets 367,977 283,507 301,032
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jul3, 2011 Apr3, 2011 Dec31,2010 Oct3, 2010
Current Assets:
Cash & Cash Equivalents 42,676 37,014 33,203 38,213
Short Term Investments 202,012 170,342 147,823 113,516
Net Receivables 48,799 48,436 52,203 55,153
Inventory 27,004 27,262 22,717 23,867
Other Current Assets 21,810 20,569 23,059 26,640
Total Current Assets 342,301 303,623 279,005 257,389
Long-Term Investments 108,700 109,069 102,055 88,590
Property, Plant & Equipt 30,590 30,063 29,596 28,316
Goodwill 82,654 82,524 82,204 82,313
Intangible Assets 21,047 22,084 23,130 24,480
Accumulated Amortization 0 0 0 0
Other Assets 1,658 1,567 1,559 1,501
Deferred LT Asset Charges 15,707 15,720 15,555 17,149
Total Assets 602,657 564,650 533,104 499,738
Current Liabilities:
Accounts Payable 43,589 42,123 44,270 43,127
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 13,089 11,573 10,162 16,234
Total Current Liabilities 56,678 53,696 54,432 59,361
Long Term Debt 0 0 0 0
Other Liabilities 5,694 5,528 5,361 4,954
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 62,372 59,224 59,793 64,315
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 84 83 82 80
Retained Earnings 405,463 390,146 379,826 363,329
Treasury Stock 0 0 0 0
Capital Surplus 130,171 115,368 102,620 78,347
Other Stockholder Equity 4,567 -171 -9,217 -6,333
Total Stockholder Equity 540,285 505,426 473,311 435,423
Net Tangible Assets 436,584 400,818 367,977 328,630
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 61,381 13,636 27,275
Operating Activites:
Depreciation 13,004 11,092 12,695
Adjustments to Net Income -105 15,558 15,385
Changes in Accounts Recv'bls -14,535 -287 8,551
Changes in Liabilities 14,961 -14,351 -1,929
Changes in Inventories -7,699 5,140 -959
Changes in Other Op'ing Actv's 0 0 -2,081
Total Cash Flow fr Operations 76,343 12,283 58,937
Investing Activities:
Capital Expenditures -5,852 -5,466 -6,012
Investments -170,949 9,941 68,753
Other Cash Flows fr Investing 0 -4,941 1,797
Total Cash Flows fr Investing -176,486 -466 64,538
Financing Acitivies:
Dividends Paid -10,014 -11,897 -19,281
Sale or Purchase of Stock 28,301 -8,929 -77,917
Net Borrowings 0 0 0
Other Cash Flows fr Financing 0 0 1,671
Total Cash Flows fr Financing 20,228 -21,298 -95,527
Effect of Exchange Rate Change -6,713 2,174 -4,954
Change in Cash & Cash Equiv.s -86,628 -7,307 22,994
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jul3, 2011 Apr3, 2011 Dec31,2010 Oct3, 2010
Net Income 19,097 13,636 19,764 18,145
Operating Activites:
Depreciation 3,958 3,837 3,803 3,366
Adjustments to Net Income 242 1,000 -660 874
Changes in Accounts Recv'bls 0 0 -14,535 0
Changes in Liabilities 0 0 14,961 0
Changes in Inventories 0 0 -7,699 0
Changes in Other Oper'g Acts 0 2,310 13,961 3,086
Total Cash Flow f Operations 27,296 20,783 29,595 25,471
Investing Activities:
Capital Expenditures -2,048 -1,577 -2,545 -1,076
Investments -29,188 -24,174 -51,545 -38,290
Other Cash Flows fr Investing 0 0 0 0
Total Cash Flows fr Investing -31,236 -25,751 -54,090 -39,366
Financing Acitivies:
Dividends Paid -3,780 -3,316 -3,267 -2,382
Sale or Purchase of Stock 11,302 9,517 21,060 6,929
Net Borrowings 0 0 0 0
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 9,067 7,081 19,653 4,704
Effect of Exchange Rate Chg 0 0 0 1,698
Change in Cash & Cash Equiv. 5,662 3,811 -5,010 271
CGNX Cognex Corporation [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.7136 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 2.1100 Forward P/E Ratio < 28? 1.7926
Sales Tests:
Price/Sales Ratio < 2.3? 0.6553 Inventory/Sales < 5%? 0.6398
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.2751
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 3.0000 Working Capital >= 1.5? 0.3312
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 1.6139 Inventory Turnover > 1? 0.6756
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 1.2931
Profit Margin > 7.5%? 2.9653
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 0.2000
Enterprise Value/Revenue: 1.9267 EPS 5-yr Growth > 20%? 2.2360
Enterprise Value/EBITDA: 1.3600 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? 2.7900 Collection < 45 days? 0.6865
Rev. Qtrly Growth > 15%? 2.4150 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.2000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 2.0073 % Held by Insiders < 5%? 0.6502
Beta > 1.25? 1.0000 % Held by Institut. < 50? 0.5800
50 Da MA > 200 Da MA? -0.1064 % Held by Institut. > 30? 2.8733
52-Wk Change vs. S&P 500: -0.0713 Short Ratio > 5? 0.9400
Price/Book Value < 3? 1.9400 Short % of Float > 20? 0.3050
Return on Assets > 17%? 0.6024 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.9093 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.5338
Cash Flow / Assets >.10? 0.8964
CGNX Cognex Corporation Overall Zenith Index: 1.5162
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Cognex Corp.:
Symbol? CGNX
Total Months Available: 57
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
31.63 22.13 36.89 24.61 37.49 27.64
RANGE = 37.49 TO 22.13 Close = 26.48
CHANNEL = 31.63 TO 27.64 Degree = 3
Volatility = 15.07% Index = 4
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The "ultimate systems" are inconclusive, giving no clear confirmed signals.
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | 0 |
| Total | - 1 |
Place 1,085 shares of Cognex Corporation (CGNX) on the Active List.
