IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
NASDAQ:IPGP - Nasdaq - US44980X1090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IPGP. IPGP was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. IPGP has a great financial health rating, but its profitability evaluates not so good. IPGP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year IPGP was profitable.
IPGP had a positive operating cash flow in the past year.
Of the past 5 years IPGP 4 years were profitable.
IPGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IPGP (-8.71%) is worse than 62.40% of its industry peers.
IPGP has a Return On Equity of -9.80%. This is comparable to the rest of the industry: IPGP outperforms 44.80% of its industry peers.
IPGP has a Return On Invested Capital of 0.18%. This is comparable to the rest of the industry: IPGP outperforms 49.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPGP is below the industry average of 9.39%.
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
With a Operating Margin value of 0.49%, IPGP perfoms like the industry average, outperforming 48.80% of the companies in the same industry.
In the last couple of years the Operating Margin of IPGP has declined.
IPGP has a Gross Margin (34.68%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IPGP is destroying value.
The number of shares outstanding for IPGP has been reduced compared to 1 year ago.
IPGP has less shares outstanding than it did 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 9.20. This indicates that IPGP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.20, IPGP belongs to the best of the industry, outperforming 88.00% 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 | 9.2 |
ROIC/WACC0.02
WACC9.02%
2.3 Liquidity
IPGP has a Current Ratio of 7.33. This indicates that IPGP is financially healthy and has no problem in meeting 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.
A Quick Ratio of 5.87 indicates that IPGP has no problem at all paying its short term obligations.
IPGP's Quick ratio of 5.87 is amongst the best of the industry. IPGP outperforms 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%.
The earnings per share for IPGP have been decreasing by -19.50% on average. This is quite bad
The Revenue for IPGP has decreased by -20.08% in the past year. This is quite bad
Measured over the past years, IPGP shows a decrease in Revenue. The Revenue has been decreasing by -5.76% on average per year.
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
The Earnings Per Share is expected to grow by 20.68% on average over the next years. This is a very strong growth
IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
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 66.76.
The rest of the industry has a similar Price/Earnings ratio as IPGP.
When comparing the Price/Earnings ratio of IPGP to the average of the S&P500 Index (26.34), we can say IPGP is valued expensively.
IPGP is valuated quite expensively with a Price/Forward Earnings ratio of 40.94.
IPGP's Price/Forward Earnings is on the same level as the industry average.
IPGP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.76 | ||
| Fwd PE | 40.94 |
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 indicates a somewhat cheap valuation: IPGP is cheaper than 69.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.73 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
IPGP's earnings are expected to grow with 20.68% in the coming years. This may justify a more expensive valuation.
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 |
67.43
+1.42 (+2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners64.07%
Inst Owner Change3.44%
Ins Owners6.37%
Ins Owner Change0.09%
Market Cap2.87B
Analysts54.67
Price Target67.73 (0.44%)
Short Float %9.32%
Short Ratio7.09
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)-6.26%
PT rev (3m)-11.23%
EPS NQ rev (1m)-7.9%
EPS NQ rev (3m)-77.41%
EPS NY rev (1m)46.3%
EPS NY rev (3m)-36.45%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.76 | ||
| Fwd PE | 40.94 | ||
| P/S | 3.01 | ||
| P/FCF | 25.73 | ||
| P/OCF | 13.87 | ||
| P/B | 1.39 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)1.01
EY1.5%
EPS(NY)1.65
Fwd EY2.44%
FCF(TTM)2.62
FCFY3.89%
OCF(TTM)4.86
OCFY7.21%
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 | 9.2 |
F-Score4
WACC9.02%
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%