86.44 USD
-0.07 (-0.08%)
86.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to IPGP. IPGP was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. IPGP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IPGP is valued expensive and it does not seem to be growing.
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.
- Each year in the past 5 years IPGP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of IPGP (1.08%) is comparable to the rest of the industry.
- IPGP's Return On Equity of 1.22% is in line compared to the rest of the industry. IPGP outperforms 48.78% of its industry peers.
- IPGP has a Return On Invested Capital (1.14%) which is comparable to the rest of the industry.
- IPGP had an Average Return On Invested Capital over the past 3 years of 5.15%. This is below the industry average of 8.87%.
- The last Return On Invested Capital (1.14%) for IPGP is well below the 3 year average (5.15%), which needs to be investigated, but indicates that IPGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.08% | ||
| ROE | 1.22% | ||
| ROIC | 1.14% |
ROA(3y)1.4%
ROA(5y)3.68%
ROE(3y)1.57%
ROE(5y)4.2%
ROIC(3y)5.15%
ROIC(5y)6.41%
1.3 Margins
- The Profit Margin of IPGP (2.66%) is better than 60.98% of its industry peers.
- With a Operating Margin value of 3.22%, IPGP perfoms like the industry average, outperforming 57.72% of the companies in the same industry.
- IPGP's Operating Margin has declined in the last couple of years.
- The Gross Margin of IPGP (38.68%) is better than 65.85% of its industry peers.
- In the last couple of years the Gross Margin of IPGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.22% | ||
| PM (TTM) | 2.66% | ||
| GM | 38.68% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IPGP is destroying value.
- Compared to 1 year ago, IPGP has less shares outstanding
- IPGP has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for IPGP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- IPGP has an Altman-Z score of 10.52. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
- IPGP has a Altman-Z score of 10.52. This is amongst the best in the industry. IPGP outperforms 86.99% 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 | 10.52 |
ROIC/WACC0.07
WACC15.84%
2.3 Liquidity
- IPGP has a Current Ratio of 6.72. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
- IPGP has a better Current ratio (6.72) than 85.37% of its industry peers.
- IPGP has a Quick Ratio of 5.20. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of IPGP (5.20) is better than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.72 | ||
| Quick Ratio | 5.2 |
3. Growth
3.1 Past
- The earnings per share for IPGP have decreased strongly by -71.63% in the last year.
- IPGP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.50% yearly.
- Looking at the last year, IPGP shows a decrease in Revenue. The Revenue has decreased by -7.49% in the last year.
- The Revenue has been decreasing by -5.76% on average over the past years.
EPS 1Y (TTM)-71.63%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-37.93%
Revenue 1Y (TTM)-7.49%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%7.57%
3.2 Future
- The Earnings Per Share is expected to grow by 15.02% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y-55.92%
EPS Next 2Y1.07%
EPS Next 3Y15.02%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y3.78%
Revenue Next 3Y5.43%
Revenue Next 5Y7.48%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 141.70, the valuation of IPGP can be described as expensive.
- IPGP's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of IPGP to the average of the S&P500 Index (27.21), we can say IPGP is valued expensively.
- Based on the Price/Forward Earnings ratio of 58.77, the valuation of IPGP can be described as expensive.
- IPGP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IPGP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.7 | ||
| Fwd PE | 58.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IPGP.
- IPGP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.45 | ||
| EV/EBITDA | 24.23 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as IPGP's earnings are expected to grow with 15.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.07%
EPS Next 3Y15.02%
5. Dividend
5.1 Amount
- No dividends for IPGP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
IPG PHOTONICS CORP / IPGP FAQ
Can you provide the ChartMill fundamental rating for IPG PHOTONICS CORP?
ChartMill assigns a fundamental rating of 5 / 10 to IPGP.
What is the valuation status of IPG PHOTONICS CORP (IPGP) stock?
ChartMill assigns a valuation rating of 2 / 10 to IPG PHOTONICS CORP (IPGP). This can be considered as Overvalued.
Can you provide the profitability details for IPG PHOTONICS CORP?
IPG PHOTONICS CORP (IPGP) has a profitability rating of 4 / 10.
What is the valuation of IPG PHOTONICS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for IPG PHOTONICS CORP (IPGP) is 141.7 and the Price/Book (PB) ratio is 1.73.
How sustainable is the dividend of IPG PHOTONICS CORP (IPGP) stock?
The dividend rating of IPG PHOTONICS CORP (IPGP) is 0 / 10 and the dividend payout ratio is 0%.