85.8475 USD
-0.59 (-0.69%)
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. 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.
- In the past year IPGP had a positive cash flow from operations.
- Of the past 5 years IPGP 4 years were profitable.
- Each year in the past 5 years IPGP had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.08%, IPGP perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 1.22%, IPGP is in line with its industry, outperforming 48.78% of the companies in the same industry.
- IPGP's Return On Invested Capital of 1.14% is in line compared to the rest of the industry. IPGP outperforms 48.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IPGP is below the industry average of 8.87%.
- The last Return On Invested Capital (1.14%) 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 | 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 decent Profit Margin value of 2.66%, IPGP is doing good in the industry, outperforming 60.98% of the companies in the same industry.
- IPGP has a Operating Margin (3.22%) which is in line with its industry peers.
- IPGP's Operating Margin has declined in the last couple of years.
- IPGP has a Gross Margin of 38.68%. This is in the better half of the industry: IPGP outperforms 65.85% 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.
- IPGP has less shares outstanding than it did 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 10.52 indicates that IPGP is not in any danger for bankruptcy at the moment.
- IPGP's Altman-Z score of 10.52 is amongst the best of the industry. IPGP outperforms 86.99% 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 | 10.52 |
ROIC/WACC0.13
WACC8.88%
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 85.37% 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 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.72 | ||
| Quick Ratio | 5.2 |
3. Growth
3.1 Past
- The earnings per share for IPGP have decreased strongly by -71.63% in the last year.
- The earnings per share for IPGP have been decreasing by -19.50% on average. This is quite bad
- 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
- The Earnings Per Share is expected to grow by 15.02% on average over the next years. This is quite good.
- Based on estimates for the next years, IPGP will show a small growth in Revenue. The Revenue will grow by 7.48% on average per year.
EPS Next Y-55.92%
EPS Next 2Y1.07%
EPS Next 3Y15.02%
EPS Next 5YN/A
Revenue Next Year0.68%
Revenue Next 2Y3.78%
Revenue Next 3Y5.43%
Revenue Next 5Y7.48%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 140.73, the valuation of IPGP can be described as expensive.
- IPGP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of IPGP to the average of the S&P500 Index (27.21), we can say IPGP is valued expensively.
- Based on the Price/Forward Earnings ratio of 58.37, the valuation of IPGP can be described as expensive.
- IPGP's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of IPGP to the average of the S&P500 Index (25.98), we can say IPGP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.73 | ||
| Fwd PE | 58.37 |
4.2 Price Multiples
- IPGP's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 99.76 | ||
| EV/EBITDA | 24.23 |
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
- IPGP does not give a dividend.
| 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 140.73 and the Price/Book (PB) ratio is 1.72.
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%.