- Cognex Corporation (CGNX) currently trades above corporate and historical averages relative to Uniform earnings, with a 33.4x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to reach new peaks, accompanied by 5% Uniform asset growth.
- Meanwhile, analysts expect Uniform ROA to improve to 42% by 2023, accompanied by 8% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $65, representing approximately 14% equity downside for the firm.
- Moreover, the firm’s most recent earnings call suggests management may have concerns about product capabilities, industry growth, and sales initiatives.
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