IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
USA - NASDAQ:IPGP - US44980X1090 - Common Stock
79.69 USD
-1.98 (-2.42%)
79.69 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
IPGP had positive earnings in the past year.
In the past year IPGP had a positive cash flow from operations.
Of the past 5 years IPGP 4 years were profitable.
In the past 5 years IPGP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IPGP (1.08%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.22%, IPGP is in line with its industry, outperforming 50.41% of the companies in the same industry.
IPGP has a Return On Invested Capital (1.14%) which is in line with its industry peers.
IPGP had an Average Return On Invested Capital over the past 3 years of 5.15%. This is below the industry average of 9.58%.
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
With a Profit Margin value of 2.66%, IPGP perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
IPGP's Operating Margin of 3.22% is in line compared to the rest of the industry. IPGP outperforms 56.10% of its industry peers.
In the last couple of years the Operating Margin of IPGP has declined.
The Gross Margin of IPGP (38.68%) is better than 65.04% of its industry peers.
IPGP's Gross Margin has declined in the last couple of years.
| 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
IPGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
IPGP has less shares outstanding than it did 1 year ago.
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 10.10. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IPGP (10.10) is better than 87.80% 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 | 10.1 |
ROIC/WACC0.13
WACC9.11%
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.
Looking at the Current ratio, with a value of 6.72, IPGP belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
A Quick Ratio of 5.20 indicates that IPGP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.20, IPGP belongs to the best of the industry, outperforming 86.99% 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%.
IPGP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.50% yearly.
IPGP shows a decrease in Revenue. In the last year, the revenue decreased by -7.49%.
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 17.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y-53.13%
EPS Next 2Y3.74%
EPS Next 3Y17.39%
EPS Next 5YN/A
Revenue Next Year-1.19%
Revenue Next 2Y3.05%
Revenue Next 3Y3.83%
Revenue Next 5Y7.17%
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.
4. Valuation
4.1 Price/Earnings Ratio
IPGP is valuated quite expensively with a Price/Earnings ratio of 130.64.
Compared to the rest of the industry, the Price/Earnings ratio of IPGP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of IPGP to the average of the S&P500 Index (25.89), we can say IPGP is valued expensively.
The Price/Forward Earnings ratio is 51.42, which means the current valuation is very expensive for IPGP.
IPGP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.59. IPGP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.64 | ||
| Fwd PE | 51.42 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.82 | ||
| EV/EBITDA | 22.15 |
4.3 Compensation for Growth
IPGP's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.74%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
IPGP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.69
-1.98 (-2.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners70.07%
Inst Owner Change0.13%
Ins Owners6.4%
Ins Owner Change-1.76%
Market Cap3.36B
Revenue(TTM)963.64M
Net Income(TTM)25.64M
Analysts72.94
Price Target84.49 (6.02%)
Short Float %9.16%
Short Ratio10
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)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)3.28%
PT rev (3m)21.81%
EPS NQ rev (1m)-4.1%
EPS NQ rev (3m)-25.24%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-29.87%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.64 | ||
| Fwd PE | 51.42 | ||
| P/S | 3.49 | ||
| P/FCF | 92.82 | ||
| P/OCF | 27.96 | ||
| P/B | 1.6 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 22.15 |
EPS(TTM)0.61
EY0.77%
EPS(NY)1.55
Fwd EY1.94%
FCF(TTM)0.86
FCFY1.08%
OCF(TTM)2.85
OCFY3.58%
SpS22.82
BVpS49.85
TBVpS46.92
PEG (NY)N/A
PEG (5Y)N/A
Graham Number26.16
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.1 |
F-Score7
WACC9.11%
ROIC/WACC0.13
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-53.13%
EPS Next 2Y3.74%
EPS Next 3Y17.39%
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 Year-1.19%
Revenue Next 2Y3.05%
Revenue Next 3Y3.83%
Revenue Next 5Y7.17%
EBIT growth 1Y3.86%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year158.96%
EBIT Next 3Y43.07%
EBIT Next 5Y28.3%
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.
Can you provide the valuation status for IPG PHOTONICS CORP?
ChartMill assigns a valuation rating of 2 / 10 to IPG PHOTONICS CORP (IPGP). This can be considered as Overvalued.
What is the profitability of IPGP stock?
IPG PHOTONICS CORP (IPGP) has a profitability rating of 4 / 10.
What are the PE and PB ratios of IPG PHOTONICS CORP (IPGP) stock?
The Price/Earnings (PE) ratio for IPG PHOTONICS CORP (IPGP) is 130.64 and the Price/Book (PB) ratio is 1.6.
Can you provide the financial health for IPGP stock?
The financial health rating of IPG PHOTONICS CORP (IPGP) is 9 / 10.