IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
NASDAQ:IPGP - Nasdaq - US44980X1090 - Common Stock - Currency: USD
Taking everything into account, IPGP scores 4 out of 10 in our fundamental rating. IPGP was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While IPGP has a great health rating, there are worries on its profitability. IPGP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IPGP had positive earnings in the past year.
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
IPGP has a worse Return On Assets (-8.71%) than 62.40% of its industry peers.
With a Return On Equity value of -9.80%, IPGP perfoms like the industry average, outperforming 43.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.18%, IPGP is in line with its industry, outperforming 49.60% 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 9.16%.
The last Return On Invested Capital (0.18%) 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 | -8.71% | ||
| ROE | -9.8% | ||
| ROIC | 0.18% |
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
The Operating Margin of IPGP (0.49%) is comparable to the rest of the industry.
IPGP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 34.68%, IPGP perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Gross Margin of IPGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.49% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% |
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.
Compared to 1 year ago, IPGP has less shares outstanding
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 10.15. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
IPGP's Altman-Z score of 10.15 is amongst the best of the industry. IPGP outperforms 87.20% 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 | 10.15 |
ROIC/WACC0.02
WACC9.61%
2.3 Liquidity
A Current Ratio of 7.33 indicates that IPGP has no problem at all paying its short term obligations.
IPGP's Current ratio of 7.33 is amongst the best of the industry. IPGP outperforms 86.40% of its industry peers.
IPGP has a Quick Ratio of 5.87. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of IPGP (5.87) is better than 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.87 |
3. Growth
3.1 Past
IPGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.97%.
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 for IPGP has decreased by -20.08% in the past year. This is quite bad
IPGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.76% yearly.
EPS 1Y (TTM)-73.97%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-82.69%
Revenue 1Y (TTM)-20.08%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-9.61%
3.2 Future
Based on estimates for the next years, IPGP will show a very strong growth in Earnings Per Share. The EPS will grow by 20.68% on average per year.
Based on estimates for the next years, IPGP will show a small growth in Revenue. The Revenue will grow by 4.84% on average per year.
EPS Next Y-33.16%
EPS Next 2Y6.95%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue Next Year-3.52%
Revenue Next 2Y1.92%
Revenue Next 3Y3.33%
Revenue Next 5Y4.84%
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
IPGP is valuated quite expensively with a Price/Earnings ratio of 74.85.
Compared to the rest of the industry, the Price/Earnings ratio of IPGP is on the same level as its industry peers.
IPGP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.35.
A Price/Forward Earnings ratio of 45.90 indicates a quite expensive valuation of IPGP.
IPGP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, IPGP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.85 | ||
| Fwd PE | 45.9 |
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 indicates a somewhat cheap valuation: IPGP is cheaper than 68.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.85 | ||
| EV/EBITDA | 26.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IPGP's earnings are expected to grow with 20.68% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.95%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
IPGP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.6
-1.28 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners64.07%
Inst Owner Change-0.01%
Ins Owners6.37%
Ins Owner Change0.09%
Market Cap3.22B
Analysts54.67
Price Target67.73 (-10.41%)
Short Float %8.91%
Short Ratio7.64
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)0
Avg EPS beat(2)-37%
Min EPS beat(2)-57.53%
Max EPS beat(2)-16.46%
EPS beat(4)1
Avg EPS beat(4)-9.7%
Min EPS beat(4)-57.53%
Max EPS beat(4)48.08%
EPS beat(8)4
Avg EPS beat(8)-3.26%
EPS beat(12)7
Avg EPS beat(12)1.87%
EPS beat(16)9
Avg EPS beat(16)3.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)1.03%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)0%
PT rev (3m)-11.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-77.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.85 | ||
| Fwd PE | 45.9 | ||
| P/S | 3.37 | ||
| P/FCF | 28.85 | ||
| P/OCF | 15.55 | ||
| P/B | 1.56 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 26.42 |
EPS(TTM)1.01
EY1.34%
EPS(NY)1.65
Fwd EY2.18%
FCF(TTM)2.62
FCFY3.47%
OCF(TTM)4.86
OCFY6.43%
SpS22.41
BVpS48.45
TBVpS45.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.71% | ||
| ROE | -9.8% | ||
| ROCE | 0.22% | ||
| ROIC | 0.18% | ||
| ROICexc | 0.31% | ||
| ROICexgc | 0.35% | ||
| OM | 0.49% | ||
| PM (TTM) | N/A | ||
| GM | 34.68% | ||
| FCFM | 11.7% |
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%
ROICexcg growth 3Y-63.21%
ROICexcg 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-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 157.32% | ||
| Cap/Sales | 10% | ||
| Interest Coverage | 16.96 | ||
| Cash Conversion | 316.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 7.33 | ||
| Quick Ratio | 5.87 | ||
| Altman-Z | 10.15 |
F-Score4
WACC9.61%
ROIC/WACC0.02
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)-73.97%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-82.69%
EPS Next Y-33.16%
EPS Next 2Y6.95%
EPS Next 3Y20.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.08%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-9.61%
Revenue Next Year-3.52%
Revenue Next 2Y1.92%
Revenue Next 3Y3.33%
Revenue Next 5Y4.84%
EBIT growth 1Y-97.27%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year166.88%
EBIT Next 3Y45.36%
EBIT Next 5Y28.3%
FCF growth 1Y-3.25%
FCF growth 3Y-17.56%
FCF growth 5Y-4.7%
OCF growth 1Y-11.46%
OCF growth 3Y-14%
OCF growth 5Y-5.18%