IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
NASDAQ:IPGP - Nasdaq - US44980X1090 - Common Stock - Currency: USD
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 correctly, but 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 each 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 -6.28%. This is in the lower half of the industry: IPGP underperforms 61.67% of its industry peers.
IPGP has a Return On Equity of -6.99%. This is comparable to the rest of the industry: IPGP outperforms 42.50% of its industry peers.
IPGP has a Return On Invested Capital (0.97%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for IPGP is in line with the industry average of 8.97%.
The last Return On Invested Capital (0.97%) for IPGP is well below the 3 year average (7.25%), which needs to be investigated, but indicates that IPGP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -6.99% | ||
| ROIC | 0.97% |
ROA(3y)6.97%
ROA(5y)6.59%
ROE(3y)7.94%
ROE(5y)7.49%
ROIC(3y)7.25%
ROIC(5y)7.14%
1.3 Margins
IPGP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.87%, IPGP perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of IPGP has declined.
Looking at the Gross Margin, with a value of 34.75%, IPGP is in line with its industry, outperforming 59.17% of the companies in the same industry.
IPGP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.87% | ||
| PM (TTM) | N/A | ||
| GM | 34.75% |
OM growth 3Y-2.3%
OM growth 5Y-12.68%
PM growth 3Y8.55%
PM growth 5Y-9.28%
GM growth 3Y-2.14%
GM growth 5Y-5.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IPGP is destroying value.
The number of shares outstanding for IPGP has been reduced compared to 1 year ago.
The number of shares outstanding for IPGP has been reduced compared to 5 years ago.
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
An Altman-Z score of 10.01 indicates that IPGP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.01, IPGP belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
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 | 10.01 |
ROIC/WACC0.11
WACC9.14%
2.3 Liquidity
IPGP has a Current Ratio of 8.09. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
IPGP has a better Current ratio (8.09) than 90.83% of its industry peers.
IPGP has a Quick Ratio of 6.44. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of IPGP (6.44) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.09 | ||
| Quick Ratio | 6.44 |
3. Growth
3.1 Past
IPGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.30%.
IPGP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.94% yearly.
IPGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.21%.
The Revenue has been decreasing by -2.48% on average over the past years.
EPS 1Y (TTM)-55.3%
EPS 3Y19.46%
EPS 5Y-8.94%
EPS Q2Q%-75%
Revenue 1Y (TTM)-21.21%
Revenue growth 3Y2.35%
Revenue growth 5Y-2.48%
Sales Q2Q%-22.65%
3.2 Future
The Earnings Per Share is expected to decrease by -11.76% on average over the next years. This is quite bad
Based on estimates for the next years, IPGP will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-173.31%
EPS Next 2Y-31.87%
EPS Next 3Y-11.76%
EPS Next 5YN/A
Revenue Next Year-24.01%
Revenue Next 2Y-10.22%
Revenue Next 3Y-2.73%
Revenue Next 5Y2.96%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.64, IPGP can be considered very expensive at the moment.
IPGP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.39. IPGP is around the same levels.
The Price/Forward Earnings ratio is 29.71, which means the current valuation is very expensive for IPGP.
IPGP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IPGP to the average of the S&P500 Index (94.38), we can say IPGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 29.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IPGP is valued a bit cheaper than the industry average as 60.83% of the companies are valued more expensively.
80.83% of the companies in the same industry are more expensive than IPGP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.34 | ||
| EV/EBITDA | 18.83 |
4.3 Compensation for Growth
IPGP's earnings are expected to decrease with -11.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.87%
EPS Next 3Y-11.76%
5. Dividend
5.1 Amount
No dividends for IPGP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IPG PHOTONICS CORP
NASDAQ:IPGP (2/11/2025, 8:00:01 PM)
After market: 62.99 -0.73 (-1.15%)63.72
-3.68 (-5.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners61.45%
Inst Owner Change-12.45%
Ins Owners6.93%
Ins Owner Change0%
Market Cap2.76B
Analysts53.75
Price Target85.68 (34.46%)
Short Float %5.14%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)17.59%
Min EPS beat(2)-12.9%
Max EPS beat(2)48.08%
EPS beat(4)2
Avg EPS beat(4)7.95%
Min EPS beat(4)-12.9%
Max EPS beat(4)48.08%
EPS beat(8)6
Avg EPS beat(8)9.41%
EPS beat(12)8
Avg EPS beat(12)10.63%
EPS beat(16)10
Avg EPS beat(16)8.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)0.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)2.41%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)6
Avg Revenue beat(12)-0.48%
Revenue beat(16)9
Avg Revenue beat(16)0.03%
PT rev (1m)-1.64%
PT rev (3m)-0.79%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)18.21%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 29.71 | ||
| P/S | 2.65 | ||
| P/FCF | 15.34 | ||
| P/OCF | 9.84 | ||
| P/B | 1.3 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)2.15
EY3.37%
EPS(NY)2.14
Fwd EY3.37%
FCF(TTM)4.15
FCFY6.52%
OCF(TTM)6.48
OCFY10.17%
SpS24.09
BVpS48.89
TBVpS47.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -6.99% | ||
| ROCE | 1.38% | ||
| ROIC | 0.97% | ||
| ROICexc | 1.83% | ||
| ROICexgc | 1.94% | ||
| OM | 2.87% | ||
| PM (TTM) | N/A | ||
| GM | 34.75% | ||
| FCFM | 17.25% |
ROA(3y)6.97%
ROA(5y)6.59%
ROE(3y)7.94%
ROE(5y)7.49%
ROIC(3y)7.25%
ROIC(5y)7.14%
ROICexc(3y)14.45%
ROICexc(5y)14.11%
ROICexgc(3y)15.37%
ROICexgc(5y)15.26%
ROCE(3y)10.35%
ROCE(5y)10.2%
ROICexcg growth 3Y-0.41%
ROICexcg growth 5Y-16.95%
ROICexc growth 3Y0.59%
ROICexc growth 5Y-15.14%
OM growth 3Y-2.3%
OM growth 5Y-12.68%
PM growth 3Y8.55%
PM growth 5Y-9.28%
GM growth 3Y-2.14%
GM growth 5Y-5.15%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 158.22% | ||
| Cap/Sales | 9.65% | ||
| Interest Coverage | 107.23 | ||
| Cash Conversion | 299.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 8.09 | ||
| Quick Ratio | 6.44 | ||
| Altman-Z | 10.01 |
F-Score4
WACC9.14%
ROIC/WACC0.11
Cap/Depr(3y)136.01%
Cap/Depr(5y)127.88%
Cap/Sales(3y)8.24%
Cap/Sales(5y)8.43%
Profit Quality(3y)91.26%
Profit Quality(5y)100.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-55.3%
EPS 3Y19.46%
EPS 5Y-8.94%
EPS Q2Q%-75%
EPS Next Y-173.31%
EPS Next 2Y-31.87%
EPS Next 3Y-11.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.21%
Revenue growth 3Y2.35%
Revenue growth 5Y-2.48%
Sales Q2Q%-22.65%
Revenue Next Year-24.01%
Revenue Next 2Y-10.22%
Revenue Next 3Y-2.73%
Revenue Next 5Y2.96%
EBIT growth 1Y-83.85%
EBIT growth 3Y0%
EBIT growth 5Y-14.85%
EBIT Next Year-92.04%
EBIT Next 3Y-4.52%
EBIT Next 5Y7.72%
FCF growth 1Y26.79%
FCF growth 3Y-2.08%
FCF growth 5Y-4.46%
OCF growth 1Y9.67%
OCF growth 3Y1.23%
OCF growth 5Y-5.53%