86.44 USD
-0.07 (-0.08%)
86.44 USD
0 (0%)
IPGP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 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 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.
- Of the past 5 years IPGP 4 years were profitable.
- IPGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.08%, IPGP perfoms like the industry average, outperforming 50.81% of the companies in the same industry.
- IPGP's Return On Equity of 1.22% is in line compared to the rest of the industry. IPGP outperforms 48.39% of its industry peers.
- IPGP has a Return On Invested Capital (1.14%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for IPGP is below the industry average of 8.83%.
- The 3 year average ROIC (5.15%) for IPGP is well above the current ROIC(1.14%). The reason for the recent decline needs to be investigated.
| 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
- Looking at the Profit Margin, with a value of 2.66%, IPGP is in the better half of the industry, outperforming 60.48% of the companies in the same industry.
- IPGP has a Operating Margin of 3.22%. This is comparable to the rest of the industry: IPGP outperforms 57.26% of its industry peers.
- In the last couple of years the Operating Margin of IPGP has declined.
- IPGP's Gross Margin of 38.68% is fine compared to the rest of the industry. IPGP outperforms 65.32% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IPGP is destroying value.
- Compared to 1 year ago, IPGP has less shares outstanding
- 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 10.53. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
- IPGP has a better Altman-Z score (10.53) than 87.10% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.53 |
ROIC/WACC0.07
WACC15.84%
2.3 Liquidity
- A Current Ratio of 6.72 indicates that IPGP has no problem at all paying its short term obligations.
- IPGP has a better Current ratio (6.72) than 85.48% of its industry peers.
- A Quick Ratio of 5.20 indicates that IPGP has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 5.20, IPGP belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.72 | ||
| Quick Ratio | 5.2 |
3. Growth
3.1 Past
- IPGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.63%.
- Measured over the past years, IPGP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.50% on average per year.
- The Revenue has decreased by -7.49% in the past 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
- IPGP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.02% yearly.
- 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 Year0.35%
Revenue Next 2Y3.39%
Revenue Next 3Y5.43%
Revenue Next 5Y7.48%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- IPGP is valuated quite expensively with a Price/Earnings ratio of 141.70.
- 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.
- Based on the Price/Forward Earnings ratio of 58.77, the valuation of IPGP can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IPGP is on the same level as its industry peers.
- IPGP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.7 | ||
| Fwd PE | 58.77 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPGP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.45 | ||
| EV/EBITDA | 24.26 |
4.3 Compensation for Growth
- IPGP's earnings are expected to grow with 15.02% in the coming years. This may justify a more expensive valuation.
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%.