Cognex Corporation

CGNX

Hardware, Equipment & Parts · Technology

Also trades as: 0I14.L

Price

$60.54

+0.81 (+1.36%)

Market Cap

$10.08B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jul 5, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Mixed

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Share count falling — buybacks

−5.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 179.9M (2021) → 169.4M (2025)

Winston Score History

The full picture

Cognex makes machine vision systems — cameras and software that help factory machines "see." These systems check products for defects, read barcodes, and guide robots on assembly lines. Cognex sells to manufacturers in industries like automotive, electronics, and consumer goods, and it is one of the largest dedicated machine vision companies in the world.

Cognex earns money by selling vision sensors, cameras, and software licenses to factories and logistics companies. It operates globally, with significant revenue coming from Asia, Europe, and North America. The company's moat comes from its deep software expertise and strong brand recognition among factory engineers, making it hard for customers to switch. The main risk is that Cognex's sales are closely tied to factory capital spending, which slows sharply during economic downturns — as seen in recent years when weakness in the consumer electronics and automotive markets weighed heavily on revenue.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+16.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+79.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$139M/ year

→ Flat (-1% vs prior year)

14.0% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

4.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$755M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Cognex Corporation is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

70.6%

Premium pricing power — 70.6% gross margin

Profit after running costs

Operating Margin

29.4%

Excellent — 29.4% operating margin

Return on the money invested

ROCE

14.6%

Good — 14.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+17.1%

Fast-growing sales (+17.1% YoY)

Profit growth

EPS YoY

+45.8%

Earnings growing fast (+45.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

143%

Turns 143% of profit into real cash

Spare cash per sale

FCF Margin

22.1%

Converts sales into free cash efficiently (22.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

57.7x

Expensive — P/E 57.7

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+23.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (57.7 → 34.2)

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Dividends

Dividend

Dividend Yield

0.54%

Small dividend — 0.54% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+6.3%

Dividend growing modestly (6.3% YoY)

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