Cognex Cash And Equivalents vs. Return On Equity
| CGZ Stock | EUR 35.39 1.06 3.09% |
For Cognex profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cognex to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cognex utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cognex's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cognex over time as well as its relative position and ranking within its peers.
Cognex |
Cognex Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cognex's current stock value. Our valuation model uses many indicators to compare Cognex value to that of its competitors to determine the firm's financial worth. Cognex is number one stock in cash and equivalents category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Cash And Equivalents to Return On Equity for Cognex is about 3,017,897,538 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cognex's earnings, one of the primary drivers of an investment's value.Cognex Return On Equity vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Cognex |
| = | 453.59 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Cognex |
| = | 0.15 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cognex Return On Equity Comparison
Cognex is currently under evaluation in return on equity category among its peers.
Cognex Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cognex, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cognex will eventually generate negative long term returns. The profitability progress is the general direction of Cognex's change in net profit over the period of time. It can combine multiple indicators of Cognex, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes worldwide. The company was founded in 1981 and is headquartered in Natick, Massachusetts. COGNEX CORP operates under Scientific Technical Instruments classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2124 people.
Cognex Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cognex. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cognex position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cognex's important profitability drivers and their relationship over time.
Use Cognex in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cognex position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cognex will appreciate offsetting losses from the drop in the long position's value.Cognex Pair Trading
Cognex Pair Trading Analysis
The ability to find closely correlated positions to Cognex could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cognex when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cognex - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cognex to buy it.
The correlation of Cognex is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cognex moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cognex moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cognex can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cognex position
In addition to having Cognex in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Beer and Liquor Thematic Idea Now
Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beer and Liquor Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Cognex Stock
When determining whether Cognex offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognex's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cognex Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognex Stock:Check out Trending Equities. For more detail on how to invest in Cognex Stock please use our How to Invest in Cognex guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project Cognex's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cognex at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cognex's income statement, its balance sheet, and the statement of cash flows.