IPG PHOTONICS CORP (IPGP)
US44980X1090 - Common Stock
Overall IPGP gets a fundamental rating of 6 out of 10. We evaluated IPGP against 127 industry peers in the Electronic Equipment, Instruments & Components industry. While IPGP has a great health rating, its profitability is only average at the moment. IPGP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IPGP was profitable.
In the past year IPGP had a positive cash flow from operations.
In the past 5 years IPGP has always been profitable.
Each year in the past 5 years IPGP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.04%, IPGP belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
With a decent Return On Equity value of 7.81%, IPGP is doing good in the industry, outperforming 64.00% of the companies in the same industry.
IPGP has a Return On Invested Capital (5.03%) which is in line with its industry peers.
IPGP had an Average Return On Invested Capital over the past 3 years of 7.25%. This is below the industry average of 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 7.81% | ||
| ROIC | 5.03% |
ROA(3y)6.97%
ROA(5y)6.59%
ROE(3y)7.94%
ROE(5y)7.49%
ROIC(3y)7.25%
ROIC(5y)7.14%
1.3 Margins
IPGP has a better Profit Margin (15.33%) than 94.40% of its industry peers.
IPGP's Profit Margin has declined in the last couple of years.
IPGP has a better Operating Margin (14.48%) than 91.20% of its industry peers.
In the last couple of years the Operating Margin of IPGP has declined.
IPGP has a Gross Margin of 41.29%. This is in the better half of the industry: IPGP outperforms 74.40% of its industry peers.
In the last couple of years the Gross Margin of IPGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 15.33% | ||
| GM | 41.29% |
OM growth 3Y-2.3%
OM growth 5Y-12.68%
PM growth 3Y8.55%
PM growth 5Y-9.28%
GM growth 3Y-2.14%
GM growth 5Y-5.15%
2. Health
2.1 Basic Checks
IPGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IPGP has less shares outstanding
The number of shares outstanding for IPGP has been reduced compared to 5 years ago.
IPGP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
IPGP has an Altman-Z score of 12.35. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
IPGP's Altman-Z score of 12.35 is amongst the best of the industry. IPGP outperforms 92.00% of its industry peers.
IPGP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.35 |
ROIC/WACC0.55
WACC9.13%
2.3 Liquidity
A Current Ratio of 9.52 indicates that IPGP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 9.52, IPGP belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
IPGP has a Quick Ratio of 7.27. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 7.27, IPGP belongs to the best of the industry, outperforming 88.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.52 | ||
| Quick Ratio | 7.27 |
3. Growth
3.1 Past
The earnings per share for IPGP have decreased strongly by -21.30% in the last year.
Measured over the past years, IPGP shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.94% on average per year.
Looking at the last year, IPGP shows a very negative growth in Revenue. The Revenue has decreased by -15.24% in the last year.
IPGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.48% yearly.
EPS 1Y (TTM)-21.3%
EPS 3Y19.46%
EPS 5Y-8.94%
EPS growth Q2Q-58.73%
Revenue 1Y (TTM)-15.24%
Revenue growth 3Y2.35%
Revenue growth 5Y-2.48%
Revenue growth Q2Q-27.41%
3.2 Future
Based on estimates for the next years, IPGP will show a small growth in Earnings Per Share. The EPS will grow by 2.19% on average per year.
IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y-28.27%
EPS Next 2Y1.09%
EPS Next 3Y2.19%
EPS Next 5YN/A
Revenue Next Year-8.66%
Revenue Next 2Y1.86%
Revenue Next 3Y2.83%
Revenue Next 5Y5.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.84, which indicates a rather expensive current valuation of IPGP.
Compared to the rest of the industry, the Price/Earnings ratio of IPGP indicates a somewhat cheap valuation: IPGP is cheaper than 68.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. IPGP is around the same levels.
Based on the Price/Forward Earnings ratio of 18.77, the valuation of IPGP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IPGP is valued a bit cheaper than the industry average as 63.20% of the companies are valued more expensively.
IPGP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
IPGP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IPGP is cheaper than 79.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IPGP is valued a bit cheaper than the industry average as 76.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.4 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
IPGP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.09%
EPS Next 3Y2.19%
5. Dividend
5.1 Amount
IPGP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IPG PHOTONICS CORP
NASDAQ:IPGP (5/17/2024, 7:06:28 PM)
After market: 88.61 0 (0%)88.61
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 18.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 7.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.48% | ||
| PM (TTM) | 15.33% | ||
| GM | 41.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 9.52 | ||
| Quick Ratio | 7.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-21.3%
EPS 3Y19.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.24%
Revenue growth 3Y2.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y