Cognex Corporation Common Stock (CGNX)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is excited about Cognex again. The company supplies machine vision—cameras and software—that factories and warehouses use to locate, identify, inspect and measure items. In fiscal Q2 2026, the quarter ended 2026-07-05, revenue was $291.3 million, net income $72.8 million, and diluted EPS $0.43. Compare that with fiscal Q2 2025, the quarter ended 2025-06-29—revenue of $249.1 million, net income of $40.5 million, and diluted EPS of $0.24—and the recent trend is clearly better. Full-year fiscal 2025, ended 2025-12-31, showed revenue of $994.4 million and net income of $114.4 million, versus fiscal 2024 revenue of $914.5 million and net income of $106.2 million. The balance sheet is a comfort: debt to equity is only 0.04, Altman Z is 11.90, and trailing free cash flow is $268.3 million. But the price is not. At the close on 2026-10-13, the shares were $60.01; FairStock calculates a P/E of 57.70, P/B of 6.19, EV/EBITDA of 36.89, FCF yield of 2.7%, and a Graham Number of $15.06. The margin of safety is negative 298.47%. ROE is 11.15% and ROCE is 7.13%. The FairStock/Lynch classification is SLOW GROWER—Shrinking, with profits down 8.3% a year over five years, even though the latest quarter is strong. The FairStock score is 39/100. This is a quality niche business with low leverage, but the valuation already assumes a lot. I prefer buying such assets only when price is modest relative to durable earnings; here, the numbers look full.

In plain English: Cognex makes machine-vision cameras and software that help factories and warehouses inspect and guide products automatically. The business looks financially healthy, with low debt and a strong latest quarter, but its longer-term profit record is uneven. At the recent close, the stock price looks expensive compared with the company's profits and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-05) · fiscal Q1 2026 10-Q (period ended 2026-04-05) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer