New Lifetime High Reached By Cognex (CGNX)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cognex as such a stock due to the following factors:
- CGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.0 million.
- CGNX has traded 191,501 shares today.
- CGNX is trading at a new lifetime high.
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More details on CGNX:
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes. It operates in two divisions, Modular Vision Systems and Surface Inspection Systems. CGNX has a PE ratio of 36.0. Currently there are 3 analysts that rate Cognex a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Cognex has been 529,800 shares per day over the past 30 days. Cognex has a market cap of $4.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.13 and a short float of 2.8% with 4.25 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Cognex as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 22.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CGNX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CGNX has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, COGNEX CORP's return on equity exceeds that of both the industry average and the S&P 500.
- COGNEX CORP has improved earnings per share by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COGNEX CORP increased its bottom line by earning $1.37 versus $0.83 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $1.37).
- Net operating cash flow has significantly increased by 156.71% to $92.98 million when compared to the same quarter last year. In addition, COGNEX CORP has also vastly surpassed the industry average cash flow growth rate of -5.63%.
- You can view the full Cognex Ratings Report.
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