CGNX - Embedded Expectations Analysis - 2021 04 13
Cognex Corporation (CGNX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 51.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about revenue growth, volatility in the current business environment, and the rise in demand for EVsSpecifically, management may lack confidence in their ability to align their operating expenses with more modest growth, sustain consumer electronics and logistics revenue growth, and meet annual market growth expectations. Furthermore, they may be downplaying concerns about excess inventory, and they may be concerned about their Travel and Expense (T&E) plan. Additionally, management may be exaggerating the potential of the In-Sight D900 smart camera launch and the capabilities of their 3D-L4000 product in comparison to competitors in the 3D market. Moreover, they may have concerns about the volatility of the current business environment, their ability to capitalize on the rise of the electric vehicle market, and declines in EPS. Finally, they may be overstating the potential capabilities of electric vehicles sensors
Cognex is a provider of machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks where vision is required. Machine vision products are used to automate the manufacture and tracking of discrete items, such as mobile phones, aspirin bottles, and automobile tires, by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. The company provides a range of machine vision systems and sensors, vision software, and industrial image-based barcode readers. The company's products also have a variety of physical forms, depending upon the user's needs.
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