IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
USA - NASDAQ:IPGP - US44980X1090 - Common Stock
81.72 USD
+1.38 (+1.72%)
81.65 USD
-0.07 (-0.09%)
IPGP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While IPGP has a great health rating, there are worries on its profitability. IPGP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
IPGP had positive earnings in the past year.
IPGP had a positive operating cash flow in the past year.
Of the past 5 years IPGP 4 years were profitable.
In the past 5 years IPGP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -9.05%, IPGP is not doing good in the industry: 62.40% of the companies in the same industry are doing better.
IPGP's Return On Equity of -10.24% is on the low side compared to the rest of the industry. IPGP is outperformed by 60.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.05% | ||
| ROE | -10.24% | ||
| ROIC | N/A |
ROA(3y)1.4%
ROA(5y)3.68%
ROE(3y)1.57%
ROE(5y)4.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of IPGP has declined.
IPGP has a Gross Margin of 34.65%. This is comparable to the rest of the industry: IPGP outperforms 55.20% of its industry peers.
In the last couple of years the Gross Margin of IPGP has declined.
IPGP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.65% |
OM growth 3Y-60.56%
OM growth 5Y-41.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.12%
GM growth 5Y-5.58%
2. Health
2.1 Basic Checks
IPGP does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for IPGP has been reduced compared to 1 year ago.
Compared to 5 years ago, IPGP has less shares outstanding
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 10.10. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.10, IPGP belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
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 | 10.1 |
ROIC/WACCN/A
WACC9.29%
2.3 Liquidity
A Current Ratio of 6.79 indicates that IPGP has no problem at all paying its short term obligations.
IPGP's Current ratio of 6.79 is amongst the best of the industry. IPGP outperforms 89.60% of its industry peers.
IPGP has a Quick Ratio of 5.39. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 5.39, IPGP belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.79 | ||
| Quick Ratio | 5.39 |
3. Growth
3.1 Past
IPGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.16%.
The earnings per share for IPGP have been decreasing by -19.50% on average. This is quite bad
IPGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.77%.
Measured over the past years, IPGP shows a decrease in Revenue. The Revenue has been decreasing by -5.76% on average per year.
EPS 1Y (TTM)-76.16%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-64.44%
Revenue 1Y (TTM)-14.77%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-2.69%
3.2 Future
Based on estimates for the next years, IPGP will show a very strong growth in Earnings Per Share. The EPS will grow by 25.04% on average per year.
Based on estimates for the next years, IPGP will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
EPS Next Y-51.87%
EPS Next 2Y2.71%
EPS Next 3Y25.04%
EPS Next 5YN/A
Revenue Next Year-1.15%
Revenue Next 2Y2.95%
Revenue Next 3Y3.83%
Revenue Next 5Y7.17%
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 113.50, which means the current valuation is very expensive for IPGP.
The rest of the industry has a similar Price/Earnings ratio as IPGP.
IPGP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 53.80, which means the current valuation is very expensive for IPGP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IPGP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of IPGP to the average of the S&P500 Index (22.71), we can say IPGP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.5 | ||
| Fwd PE | 53.8 |
4.2 Price Multiples
IPGP's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as IPGP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.38 | ||
| EV/EBITDA | 36.94 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IPGP's earnings are expected to grow with 25.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.71%
EPS Next 3Y25.04%
5. Dividend
5.1 Amount
No dividends for IPGP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.72
+1.38 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners66.29%
Inst Owner Change7.88%
Ins Owners6.36%
Ins Owner Change0.06%
Market Cap3.45B
Analysts72.5
Price Target81.8 (0.1%)
Short Float %9.55%
Short Ratio10.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.22%
Min EPS beat(2)-57.53%
Max EPS beat(2)69.97%
EPS beat(4)2
Avg EPS beat(4)11.01%
Min EPS beat(4)-57.53%
Max EPS beat(4)69.97%
EPS beat(8)4
Avg EPS beat(8)5.09%
EPS beat(12)8
Avg EPS beat(12)8.18%
EPS beat(16)10
Avg EPS beat(16)8.23%
Revenue beat(2)1
Avg Revenue beat(2)2.7%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)7.06%
Revenue beat(4)3
Avg Revenue beat(4)1.68%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)7.06%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)6
Avg Revenue beat(12)-0.61%
Revenue beat(16)9
Avg Revenue beat(16)0.1%
PT rev (1m)17.94%
PT rev (3m)20.78%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-22.04%
EPS NY rev (1m)-28%
EPS NY rev (3m)5.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.5 | ||
| Fwd PE | 53.8 | ||
| P/S | 3.65 | ||
| P/FCF | 53.38 | ||
| P/OCF | 22.84 | ||
| P/B | 1.64 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 36.94 |
EPS(TTM)0.72
EY0.88%
EPS(NY)1.52
Fwd EY1.86%
FCF(TTM)1.53
FCFY1.87%
OCF(TTM)3.58
OCFY4.38%
SpS22.41
BVpS49.85
TBVpS46.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.05% | ||
| ROE | -10.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.65% | ||
| FCFM | 6.83% |
ROA(3y)1.4%
ROA(5y)3.68%
ROE(3y)1.57%
ROE(5y)4.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.46%
ROCE(5y)8.05%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-60.56%
OM growth 5Y-41.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.12%
GM growth 5Y-5.58%
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 141.45% | ||
| Cap/Sales | 9.14% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 277.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.79 | ||
| Quick Ratio | 5.39 | ||
| Altman-Z | 10.1 |
F-Score4
WACC9.29%
ROIC/WACCN/A
Cap/Depr(3y)146.85%
Cap/Depr(5y)132.22%
Cap/Sales(3y)8.79%
Cap/Sales(5y)8.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-76.16%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-64.44%
EPS Next Y-51.87%
EPS Next 2Y2.71%
EPS Next 3Y25.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.77%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-2.69%
Revenue Next Year-1.15%
Revenue Next 2Y2.95%
Revenue Next 3Y3.83%
Revenue Next 5Y7.17%
EBIT growth 1Y-105.93%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year160.11%
EBIT Next 3Y40.32%
EBIT Next 5Y28.3%
FCF growth 1Y-42.28%
FCF growth 3Y-17.56%
FCF growth 5Y-4.7%
OCF growth 1Y-31.73%
OCF growth 3Y-14%
OCF growth 5Y-5.18%