86.44 USD
-0.07 (-0.08%)
86.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to IPGP. IPGP was compared to 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 has a expensive valuation and it also scores bad on growth.
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.
- IPGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.08%, IPGP is in line with its industry, outperforming 50.81% of the companies in the same industry.
- IPGP has a Return On Equity (1.22%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 1.14%, IPGP perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- IPGP has a better Profit Margin (2.66%) than 60.48% of its industry peers.
- IPGP has a Operating Margin (3.22%) which is in line with 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 65.32% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 10.53. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
- IPGP has a Altman-Z score of 10.53. This is amongst the best in the industry. IPGP outperforms 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
- 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 85.48% of its industry peers.
- A Quick Ratio of 5.20 indicates that IPGP has no problem at all paying its short term obligations.
- IPGP has a Quick ratio of 5.20. This is amongst the best in the industry. IPGP outperforms 85.48% of its industry peers.
| 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%.
- The earnings per share for IPGP have been decreasing by -19.50% on average. This is quite bad
- 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 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 Year0.35%
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
- A Price/Earnings ratio of 141.70 indicates a quite expensive valuation of IPGP.
- The rest of the industry has a similar Price/Earnings ratio as IPGP.
- IPGP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 58.77 indicates a quite expensive valuation of IPGP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IPGP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, IPGP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.7 | ||
| Fwd PE | 58.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IPGP.
- 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%.