IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
NASDAQ:IPGP - Nasdaq - US44980X1090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IPGP. IPGP was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. IPGP has a great financial health rating, but its profitability evaluates not so good. IPGP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IPGP was profitable.
IPGP had a positive operating cash flow in the past year.
IPGP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IPGP had a positive operating cash flow.
1.2 Ratios
IPGP has a Return On Assets of -8.71%. This is in the lower half of the industry: IPGP underperforms 62.40% of its industry peers.
With a Return On Equity value of -9.80%, IPGP perfoms like the industry average, outperforming 44.80% of the companies in the same industry.
IPGP has a Return On Invested Capital (0.18%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for IPGP is below the industry average of 9.38%.
The last Return On Invested Capital (0.18%) 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 | -8.71% | ||
| ROE | -9.8% | ||
| ROIC | 0.18% |
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
Looking at the Operating Margin, with a value of 0.49%, IPGP is in line with its industry, outperforming 48.80% of the companies in the same industry.
IPGP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 34.68%, IPGP perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Gross Margin of IPGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.49% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IPGP is destroying value.
IPGP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IPGP has been reduced compared to 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 9.46. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.46, IPGP belongs to the best of the industry, outperforming 87.20% 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 | 9.46 |
ROIC/WACC0.02
WACC8.93%
2.3 Liquidity
IPGP has a Current Ratio of 7.33. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 7.33, IPGP belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
IPGP has a Quick Ratio of 5.87. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
IPGP has a better Quick ratio (5.87) than 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.87 |
3. Growth
3.1 Past
IPGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.97%.
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 -20.08%.
IPGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.76% yearly.
EPS 1Y (TTM)-73.97%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-82.69%
Revenue 1Y (TTM)-20.08%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-9.61%
3.2 Future
IPGP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.68% yearly.
IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y-33.16%
EPS Next 2Y6.95%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue Next Year-3.52%
Revenue Next 2Y1.92%
Revenue Next 3Y3.33%
Revenue Next 5Y4.84%
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
A Price/Earnings ratio of 70.35 indicates a quite expensive valuation of IPGP.
IPGP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.21, IPGP is valued quite expensively.
The Price/Forward Earnings ratio is 43.14, which means the current valuation is very expensive for IPGP.
IPGP's Price/Forward Earnings is on the same level as the industry average.
IPGP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.35 | ||
| Fwd PE | 43.14 |
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.
Based on the Price/Free Cash Flow ratio, IPGP is valued a bit cheaper than the industry average as 70.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.11 | ||
| EV/EBITDA | 21.89 |
4.3 Compensation for Growth
IPGP's earnings are expected to grow with 20.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.95%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
IPGP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.05
+2.4 (+3.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners64.07%
Inst Owner Change3.44%
Ins Owners6.37%
Ins Owner Change0.09%
Market Cap3.02B
Analysts54.67
Price Target67.73 (-4.67%)
Short Float %9.66%
Short Ratio7.9
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)0
Avg EPS beat(2)-37%
Min EPS beat(2)-57.53%
Max EPS beat(2)-16.46%
EPS beat(4)1
Avg EPS beat(4)-9.7%
Min EPS beat(4)-57.53%
Max EPS beat(4)48.08%
EPS beat(8)4
Avg EPS beat(8)-3.26%
EPS beat(12)7
Avg EPS beat(12)1.87%
EPS beat(16)9
Avg EPS beat(16)3.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)1.03%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)-6.26%
PT rev (3m)-11.47%
EPS NQ rev (1m)-7.9%
EPS NQ rev (3m)-77.06%
EPS NY rev (1m)46.3%
EPS NY rev (3m)-36.53%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.35 | ||
| Fwd PE | 43.14 | ||
| P/S | 3.17 | ||
| P/FCF | 27.11 | ||
| P/OCF | 14.62 | ||
| P/B | 1.47 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 21.89 |
EPS(TTM)1.01
EY1.42%
EPS(NY)1.65
Fwd EY2.32%
FCF(TTM)2.62
FCFY3.69%
OCF(TTM)4.86
OCFY6.84%
SpS22.41
BVpS48.45
TBVpS45.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.71% | ||
| ROE | -9.8% | ||
| ROCE | 0.22% | ||
| ROIC | 0.18% | ||
| ROICexc | 0.31% | ||
| ROICexgc | 0.35% | ||
| OM | 0.49% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% | ||
| FCFM | 11.7% |
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%
ROICexcg growth 3Y-63.21%
ROICexcg 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-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 157.32% | ||
| Cap/Sales | 10% | ||
| Interest Coverage | 16.96 | ||
| Cash Conversion | 316.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.87 | ||
| Altman-Z | 9.46 |
F-Score4
WACC8.93%
ROIC/WACC0.02
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)-73.97%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-82.69%
EPS Next Y-33.16%
EPS Next 2Y6.95%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.08%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-9.61%
Revenue Next Year-3.52%
Revenue Next 2Y1.92%
Revenue Next 3Y3.33%
Revenue Next 5Y4.84%
EBIT growth 1Y-97.27%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year166.88%
EBIT Next 3Y45.36%
EBIT Next 5Y28.3%
FCF growth 1Y-3.25%
FCF growth 3Y-17.56%
FCF growth 5Y-4.7%
OCF growth 1Y-11.46%
OCF growth 3Y-14%
OCF growth 5Y-5.18%