Not a member yet? Register now and get started.

lock and key

Sign in to your account.

Account Login

Forgot your password?

Cognex Idea Proposal (CGNX)

Cognex Idea Proposal (CGNX)

Will Cognex’s claim of superior technology and software drive growth to keep it ahead of the competition?

Report Available: July 7, 2017


Blueshift’s initial research found CGNX with several quarters of significant growth, introducing innovative technology, and acquiring companies with impressive intellectual property. Also, adoption and growth in factory automation, specifically machine vision, are trending in CGNX’s favor. Still, a highly competitive market with large multinational companies that occupy this space could negatively affect CGNX.



  1. After setting records for Q4 and full year 2016 revenue, net income, and EPS, CGNX started 2017 with another strong quarter of growth. It also reported large orders scheduled for the second half of 2017. Q1 revenue increased 40% to $139.9 million compared to guidance in the range of $122 million to $125 million. Gross margin was 79%, the top end of the guidance range. Operating income increased 128% and EPS increased 200%. Better-than-expected sales from the automotive and consumer electronics sectors were cited as key growth drivers. Management also stressed its target growth rate of 20%.
  2. Q1 also saw CGNX benefit from its higher-than-average R&D investment with the launch of three new products, including the In-Sight 7000, a next-gen offering in the company’s vision systems product line, the In-Sight Profiler,CGNX’s first3D product to leverage the successful In-Sight Software platform, and the new DataMan 70 series. CGNX also closed on two acquisitions in April: ViDi Systems, a Swiss-based startup specializing in deep learning software for industrial applications, and GVi Ventures, a small solutions provider for common automotive applications.
  3. CGNX has identified its TAM at a healthy $2.9 billion across a variety of applications and industries, indicating significant room for growth. Some analysts think the reported TAM is low. Recent research shows strong adoption of robotics and machine vision, projecting growth at an 8.4% CAGR and a top value of $28.9 billion by 2021.
  4. Challenges and headwinds that could derail expected growth for CGNX include robust competition from a long list of impressive companies like Basler, Omron, National Instruments, Keyence, Sony, Teledyne Technologies, Texas Instruments, Allied Vision Technologies, Intel, Baumer Optronic, and JAI. Another concern is if the reported second-half 2017 orders from the consumer electronics market segment do not materialize, similar to what happened in 2015.
  5. Blueshift researched CGNX in July and December 2011 with positive findings indicating that the company would experience continued growth and success despite fits and starts in capex for factory automation. Sources pointed to life sciences and logistics as growth areas for CGNX. On its most recent earnings call, CGNX said its logistics solutions could experience 50% growth rates for the foreseeable future.


What is the growth opportunity for CGNX? Can CGNX achieve its target of 20%+ growth? What advantage does CGNX have over its competition? Where does CGNX’s software rank compared to competitors’? Is CGNX’s R&D spend producing results that are ahead of the competition? Why do customers choose CGNX? How difficult is it and how long would it take to switch vendors after selecting a machine vision solution provider? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: CGNX customers, CGNX distributors and integrators, Competitors, and Industry specialists.


Companies: Basler AG (ETR:BSL), Cognex (CGNX), DATALOGIC SpA (BIT:DAL), Honeywell (HON), Intel (INTC), National Instruments Corp. (NATI), OMRON Corporation (TYO: 6645), Sony (SNE), Teledyne Technologies (TDY),Texas Instruments (TXN), Zebra Technologies (ZBRA)


Research Begins: June 19, 2017