IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:IPGP • US44980X1090

98.92 USD
+4.37 (+4.62%)
At close: Feb 3, 2026
99.6 USD
+0.68 (+0.69%)
Pre-Market: 2/4/2026, 8:00:01 AM
Fundamental Rating

5

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 has an excellent financial health rating, but there are some minor concerns on its profitability. IPGP does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

4

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.
IPGP Yearly Net Income VS EBIT VS OCF VS FCFIPGP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

1.2 Ratios

  • IPGP has a Return On Assets of 1.08%. This is comparable to the rest of the industry: IPGP outperforms 52.03% of its industry peers.
  • With a Return On Equity value of 1.22%, IPGP perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
  • IPGP has a Return On Invested Capital (1.14%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for IPGP is below the industry average of 8.89%.
  • 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 RankSector 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%
IPGP Yearly ROA, ROE, ROICIPGP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.66%, IPGP is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 3.22%, IPGP is in line with its industry, outperforming 56.91% of the companies in the same industry.
  • IPGP's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 38.68%, IPGP is doing good in the industry, outperforming 65.85% of the companies in the same industry.
  • IPGP's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
IPGP Yearly Profit, Operating, Gross MarginsIPGP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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9

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.
IPGP Yearly Shares OutstandingIPGP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
IPGP Yearly Total Debt VS Total AssetsIPGP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 11.66 indicates that IPGP is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of IPGP (11.66) is better than 90.24% of its industry peers.
  • 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 11.66
ROIC/WACC0.07
WACC15.89%
IPGP Yearly LT Debt VS Equity VS FCFIPGP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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's Current ratio of 6.72 is amongst the best of the industry. IPGP outperforms 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.
  • IPGP has a Quick ratio of 5.20. This is amongst the best in the industry. IPGP outperforms 85.37% of its industry peers.
Industry RankSector Rank
Current Ratio 6.72
Quick Ratio 5.2
IPGP Yearly Current Assets VS Current LiabilitesIPGP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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3

3. Growth

3.1 Past

  • The earnings per share for IPGP have decreased strongly by -71.63% in the last year.
  • The earnings per share for IPGP have been decreasing by -19.50% on average. This is quite bad
  • The Revenue has decreased by -7.49% in the past year.
  • 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)-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.
  • IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.48% yearly.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
IPGP Yearly Revenue VS EstimatesIPGP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B
IPGP Yearly EPS VS EstimatesIPGP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

  • IPGP is valuated quite expensively with a Price/Earnings ratio of 162.16.
  • IPGP's Price/Earnings ratio is in line with the industry average.
  • IPGP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.18.
  • A Price/Forward Earnings ratio of 67.25 indicates a quite expensive valuation of IPGP.
  • IPGP's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 25.51. IPGP is valued rather expensively when compared to this.
Industry RankSector Rank
PE 162.16
Fwd PE 67.25
IPGP Price Earnings VS Forward Price EarningsIPGP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IPGP is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as IPGP.
Industry RankSector Rank
P/FCF 114.95
EV/EBITDA 29.9
IPGP Per share dataIPGP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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%

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0

5. Dividend

5.1 Amount

  • IPGP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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IPG PHOTONICS CORP

NASDAQ:IPGP (2/3/2026, 8:25:10 PM)

Premarket: 99.6 +0.68 (+0.69%)

98.92

+4.37 (+4.62%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)11-04
Earnings (Next)02-12
Inst Owners71.35%
Inst Owner Change-0.44%
Ins Owners6.4%
Ins Owner Change-4.54%
Market Cap4.17B
Revenue(TTM)963.64M
Net Income(TTM)25.64M
Analysts77.65
Price Target95.37 (-3.59%)
Short Float %12.86%
Short Ratio9.54
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.55%
Min EPS beat(2)31.14%
Max EPS beat(2)69.97%
EPS beat(4)2
Avg EPS beat(4)6.78%
Min EPS beat(4)-57.53%
Max EPS beat(4)69.97%
EPS beat(8)4
Avg EPS beat(8)7.36%
EPS beat(12)8
Avg EPS beat(12)8.53%
EPS beat(16)10
Avg EPS beat(16)9.66%
Revenue beat(2)2
Avg Revenue beat(2)4.8%
Min Revenue beat(2)2.53%
Max Revenue beat(2)7.06%
Revenue beat(4)3
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)7.06%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)7
Avg Revenue beat(12)0.29%
Revenue beat(16)9
Avg Revenue beat(16)0.2%
PT rev (1m)0%
PT rev (3m)12.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.97%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.89%
Valuation
Industry RankSector Rank
PE 162.16
Fwd PE 67.25
P/S 4.32
P/FCF 114.95
P/OCF 34.63
P/B 1.98
P/tB 2.1
EV/EBITDA 29.9
EPS(TTM)0.61
EY0.62%
EPS(NY)1.47
Fwd EY1.49%
FCF(TTM)0.86
FCFY0.87%
OCF(TTM)2.86
OCFY2.89%
SpS22.88
BVpS49.97
TBVpS47.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number26.19
Profitability
Industry RankSector Rank
ROA 1.08%
ROE 1.22%
ROCE 1.43%
ROIC 1.14%
ROICexc 1.91%
ROICexgc 2.11%
OM 3.22%
PM (TTM) 2.66%
GM 38.68%
FCFM 3.76%
ROA(3y)1.4%
ROA(5y)3.68%
ROE(3y)1.57%
ROE(5y)4.2%
ROIC(3y)5.15%
ROIC(5y)6.41%
ROICexc(3y)9.79%
ROICexc(5y)12.83%
ROICexgc(3y)10.36%
ROICexgc(5y)13.71%
ROCE(3y)6.46%
ROCE(5y)8.05%
ROICexgc growth 3Y-63.21%
ROICexgc growth 5Y-43.44%
ROICexc growth 3Y-63.72%
ROICexc growth 5Y-43.33%
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-Score7
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 136.44%
Cap/Sales 8.72%
Interest Coverage 97.71
Cash Conversion 129.81%
Profit Quality 141.36%
Current Ratio 6.72
Quick Ratio 5.2
Altman-Z 11.66
F-Score7
WACC15.89%
ROIC/WACC0.07
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)-71.63%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-37.93%
EPS Next Y-55.92%
EPS Next 2Y1.07%
EPS Next 3Y15.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.49%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%7.57%
Revenue Next Year0.68%
Revenue Next 2Y3.78%
Revenue Next 3Y5.43%
Revenue Next 5Y7.48%
EBIT growth 1Y3.86%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year169.71%
EBIT Next 3Y43.49%
EBIT Next 5Y28.64%
FCF growth 1Y-69.97%
FCF growth 3Y-17.56%
FCF growth 5Y-4.7%
OCF growth 1Y-48.03%
OCF growth 3Y-14%
OCF growth 5Y-5.18%

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 162.16 and the Price/Book (PB) ratio is 1.98.


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%.