# Cognex (CGNX.US)

Canonical: https://gigainvestors.com/s/CGNX

Analysis as of: 2026-10-16T07:27:23.599Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $55.67 per share; close as of 2026-10-15.

Estimated value: low $11.99 per share, central $13.33 per share, high $15.11 per share. Buy at or below the central value $13.33 per share. Valuation as of 2026-10-16T07:27:23.599Z; scenarios are not confidence intervals.

Expected annual return: 4.4% at the stated quote. About 4.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.29×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.34×

- FY2018: 0.27×

- FY2019: 0.20×

- FY2020: 0.21×

- FY2021: 0.30×

- FY2022: 0.24×

- FY2023: 0.16×

- FY2024: 0.13×

- FY2025: 0.16×

- LTM to Jun 2026: 0.22×

### moat: fail

- Recent gross margin fell 4.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 21.9%

- ROIC, second-lowest year: 12.5%

- Typical minus recent gross margin: 4.1 pp

- Typical gross margin (annual median): 72.5%

- Recent gross margin (lower of latest and 3-year median): 68.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 20.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 28.9%

- FY2018: 42.1%

- FY2019: 19.9%

- FY2020: 23.9%

- FY2021: 31.1%

- FY2022: 25.3%

- FY2023: 12.7%

- FY2024: 9.7%

- FY2025: 12.5%

- LTM to Jun 2026: 17.6%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $873M

- Net income, five-year total: $829M

- Return on incremental invested capital: 1.5%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 10.8 pp

- Working capital / revenue, final three-year average: 28.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.02×

- FY2022: 1.00×

- FY2023: 0.99×

- FY2024: 1.17×

- FY2025: 1.19×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 42.1% vs 12.5%

- Per-share earnings: 0.98 to 0.65 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $469M

- Cumulative retained earnings: -$237M

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.0%

- Per-share value change: -$0.33

- Per-share value, starting three-year median: $0.98

- Per-share value, ending three-year median: $0.65

- Buybacks concentrated in cheaper years (correlation): 0.48

- Average buyback yield: 1.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $451M

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 42.1%

- ROIC, last three-year median: 12.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.83

- FY2017: $0.98

- FY2018: $1.24

- FY2019: $1.16

- FY2020: $1.00

- FY2021: $1.56

- FY2022: $1.23

- FY2023: $0.65

- FY2024: $0.62

- FY2025: $0.68

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -6.5%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 19.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.15×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -3.7%

- FY2018: -0.3%

- FY2019: -2.6%

- FY2020: -3.7%

- FY2021: -1.7%

- FY2022: -1.4%

- FY2023: 0.0%

- FY2024: -2.2%

- FY2025: -6.5%

## Holders

- [Glenn Welling](https://gigainvestors.com/ENG): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Oct 2021 · "Automotive Revenue: Declined year-on-year due to weakness across all geographies." (finance.yahoo.com, May 2025) · sales +9.5%

Story as of 2026-10-16T09:58:29.810Z; price observation 2026-10-15.

Price needs cash profits to grow 21% a year for ten years

- 2025-07-31: Cognex outlines 9% Q3 revenue growth target with AI strategy and disciplined cost focus ([seekingalpha.com](https://seekingalpha.com/news/4475887-cognex-outlines-9-percent-q3-revenue-growth-target-with-ai-strategy-and-disciplined-cost?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-13: Why Cognex (CGNX) Is Up 48.6% After Margin-Focused Overhaul, Buyback And Dividend Update ([finance.yahoo.com](https://finance.yahoo.com/news/why-cognex-cgnx-48-6-021314189.html))

- 2026-05-13: Cognex OneVision™ Adoption Ramps as Manufacturers Scale AI Vision Globally ([finance.yahoo.com](https://finance.yahoo.com/news/cognex-onevision-adoption-ramps-manufacturers-130000485.html))

### Sales · FY2025–2026

sales +9.5%; source https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm; observed 2026-02-12.

- FY2017: $766M 

- FY2018: $806M 

- FY2019: $726M 

- FY2020: $811M 

- FY2021: $1.0B 

- FY2022: $1.0B 

- FY2023: $838M 

- FY2024: $915M 

- FY2025: $994M 

- FY2026: $1.1B 

### Gross margin · FY2026

gross margin 68.9%; source https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm; observed 2026-02-12.

- FY2017: 75.6% 

- FY2018: 74.4% 

- FY2019: 73.8% 

- FY2020: 74.5% 

- FY2021: 73.3% 

- FY2022: 71.8% 

- FY2023: 71.8% 

- FY2024: 68.4% 

- FY2025: 66.9% 

- FY2026: 68.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 994.4 million.

- Source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm (filed 2026-02-12); FY2025: revenue 994359000; grossProfit 665393000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CGNX.US: 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.

### Why customers stay

Margins ranged from 66.9% to 71.8% during 2023–25; it earns 21.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 71.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 68.4%.

- Source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 66.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2017,0.2887124864151302],[2018,0.42052396349537513],[2019,0.19851685211815623],[2020,0.23918779250609015],[2021,0.3106063677920673],[2022,0.2533993810173149],[2023,0.12742559935112424],[2024,0.09711091927266537],[2025,0.12501437451345526],[2026,0.1762907499933165]]; median 0.2188523223121232. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 72% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm (filed 2026-02-12); Gross margin observations: [[2021,0.7326472522365293],[2022,0.717535210567643],[2023,0.7178594156507038]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 151.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 12816000; owner earnings 145947000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 11763000; upkeep 16991000; owner earnings 176712000. Growth capex / owner earnings = 0.06656593779709358.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 4410300.619299866; upkeep 32684699.380700134; owner earnings 208131300.61929986. Growth capex / owner earnings = 0.021189992116403957.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 21745000; owner earnings 207020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 13303000; owner earnings 189386000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 15455000; owner earnings 284709000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 0; upkeep 19667000; owner earnings 215479000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 23077000; owner earnings 112037000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 15043000; owner earnings 123817000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 8743000; owner earnings 136492000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,25213000],[2017,29037000],[2018,31865000],[2019,35124000],[2020,390508000],[2021,43263000],[2022,45921000],[2023,49079000],[2024,52329000],[2025,54627000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 151233000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CGNX.US SharesStats.PercentInsiders = 0.362 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 21% yearly over ten years; actual decline was 2.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.29321527024228244. Price 55.67; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9954204037887935 → FY2025 0.8058948909764003. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $25.80 per share

- 2016-11: $29.86 per share

- 2016-12: $31.81 per share

- 2017-01: $33.78 per share

- 2017-02: $38.41 per share

- 2017-03: $41.98 per share

- 2017-04: $42.67 per share

- 2017-05: $45.76 per share

- 2017-06: $42.45 per share

- 2017-07: $47.53 per share

- 2017-08: $54.49 per share

- 2017-09: $55.14 per share

- 2017-10: $61.58 per share

- 2017-11: $69.29 per share

- 2017-12: $61.16 per share

- 2018-01: $62.37 per share

- 2018-02: $53.71 per share

- 2018-03: $51.99 per share

- 2018-04: $46.25 per share

- 2018-05: $45.71 per share

- 2018-06: $44.61 per share

- 2018-07: $52.78 per share

- 2018-08: $53.80 per share

- 2018-09: $55.82 per share

- 2018-10: $42.84 per share

- 2018-11: $44.02 per share

- 2018-12: $38.67 per share

- 2019-01: $45.50 per share

- 2019-02: $53.40 per share

- 2019-03: $50.86 per share

- 2019-04: $50.43 per share

- 2019-05: $40.60 per share

- 2019-06: $47.98 per share

- 2019-07: $44.01 per share

- 2019-08: $45.08 per share

- 2019-09: $49.13 per share

- 2019-10: $51.49 per share

- 2019-11: $50.18 per share

- 2019-12: $56.04 per share

- 2020-01: $50.97 per share

- 2020-02: $44.54 per share

- 2020-03: $42.22 per share

- 2020-04: $55.24 per share

- 2020-05: $56.74 per share

- 2020-06: $59.72 per share

- 2020-07: $66.87 per share

- 2020-08: $69.19 per share

- 2020-09: $65.10 per share

- 2020-10: $65.90 per share

- 2020-11: $75.14 per share

- 2020-12: $80.29 per share

- 2021-01: $82.13 per share

- 2021-02: $82.59 per share

- 2021-03: $82.99 per share

- 2021-04: $86.12 per share

- 2021-05: $79.39 per share

- 2021-06: $84.05 per share

- 2021-07: $90.41 per share

- 2021-08: $88.62 per share

- 2021-09: $80.22 per share

- 2021-10: $87.59 per share

- 2021-11: $77.25 per share

- 2021-12: $77.76 per share

- 2022-01: $66.46 per share

- 2022-02: $67.56 per share

- 2022-03: $77.15 per share

- 2022-04: $67.63 per share

- 2022-05: $48.42 per share

- 2022-06: $42.52 per share

- 2022-07: $50.98 per share

- 2022-08: $42.11 per share

- 2022-09: $41.45 per share

- 2022-10: $46.23 per share

- 2022-11: $49.78 per share

- 2022-12: $47.11 per share

- 2023-01: $54.74 per share

- 2023-02: $47.42 per share

- 2023-03: $49.55 per share

- 2023-04: $47.69 per share

- 2023-05: $54.96 per share

- 2023-06: $56.02 per share

- 2023-07: $54.62 per share

- 2023-08: $47.08 per share

- 2023-09: $42.44 per share

- 2023-10: $35.99 per share

- 2023-11: $37.70 per share

- 2023-12: $41.74 per share

- 2024-01: $36.14 per share

- 2024-02: $39.45 per share

- 2024-03: $42.42 per share

- 2024-04: $41.54 per share

- 2024-05: $45.52 per share

- 2024-06: $46.76 per share

- 2024-07: $49.62 per share

- 2024-08: $40.38 per share

- 2024-09: $40.50 per share

- 2024-10: $40.23 per share

- 2024-11: $39.98 per share

- 2024-12: $35.86 per share

- 2025-01: $39.90 per share

- 2025-02: $32.80 per share

- 2025-03: $29.83 per share

- 2025-04: $27.30 per share

- 2025-05: $29.97 per share

- 2025-06: $31.72 per share

- 2025-07: $40.77 per share

- 2025-08: $43.94 per share

- 2025-09: $45.30 per share

- 2025-10: $41.39 per share

- 2025-11: $38.10 per share

- 2025-12: $35.98 per share

- 2026-01: $38.74 per share

- 2026-02: $54.40 per share

- 2026-03: $48.99 per share

- 2026-04: $55.51 per share

- 2026-05: $65.85 per share

- 2026-06: $72.42 per share

- 2026-07: $65.24 per share

- 2026-08: $60.96 per share

- 2026-09: $60.65 per share

- 2026-10: $55.67 per share

## Annual estimated value (USD per share)

- FY2016: low $13.38 per share, central $14.64 per share, high $16.32 per share

- FY2017: low $18.16 per share, central $25.01 per share, high $29.00 per share

- FY2018: low $19.96 per share, central $27.26 per share, high $31.51 per share

- FY2019: low $17.78 per share, central $24.43 per share, high $28.30 per share

- FY2020: low $18.35 per share, central $24.62 per share, high $28.53 per share

- FY2021: low $23.29 per share, central $33.20 per share, high $38.73 per share

- FY2022: low $22.36 per share, central $31.01 per share, high $36.05 per share

- FY2023: low $15.08 per share, central $18.11 per share, high $20.82 per share

- FY2024: low $13.72 per share, central $15.43 per share, high $17.71 per share

- FY2025: low $10.68 per share, central $11.90 per share, high $13.51 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/851205/000085120526000012/cgnx-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.