IPG PHOTONICS CORP (IPGP) Stock Fundamental Analysis
NASDAQ:IPGP - Nasdaq - US44980X1090 - Common Stock - Currency: USD
Taking everything into account, IPGP scores 5 out of 10 in our fundamental rating. IPGP was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. No worries on liquidiy or solvency for IPGP as it has an excellent financial health rating, but there are worries on the profitability. IPGP has a valuation in line with the averages, but it does not seem to be growing.
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 -7.93%, IPGP is not doing good in the industry: 62.40% of the companies in the same industry are doing better.
IPGP has a Return On Equity of -8.97%. This is comparable to the rest of the industry: IPGP outperforms 44.00% of its industry peers.
IPGP has a Return On Invested Capital (0.55%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for IPGP is below the industry average of 9.32%.
The last Return On Invested Capital (0.55%) 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 | -7.93% | ||
| ROE | -8.97% | ||
| ROIC | 0.55% |
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 Operating Margin (1.48%) which is comparable to the rest of the industry.
IPGP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.61%, IPGP is in line with its industry, outperforming 56.80% of the companies in the same industry.
IPGP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.48% | ||
| PM (TTM) | N/A | ||
| GM | 34.61% |
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.
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.
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 8.01 indicates that IPGP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.01, IPGP belongs to the best of the industry, outperforming 88.80% of the companies in the same industry.
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 | 8.01 |
ROIC/WACC0.06
WACC8.94%
2.3 Liquidity
A Current Ratio of 6.98 indicates that IPGP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.98, IPGP belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
IPGP has a Quick Ratio of 5.59. This indicates that IPGP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of IPGP (5.59) is better than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.98 | ||
| Quick Ratio | 5.59 |
3. Growth
3.1 Past
The earnings per share for IPGP have decreased strongly by -68.30% in the last year.
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 -24.10% 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)-68.3%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-40.38%
Revenue 1Y (TTM)-24.1%
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 31.16% on average per year.
IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y5.32%
EPS Next 2Y25.74%
EPS Next 3Y31.16%
EPS Next 5YN/A
Revenue Next Year0.56%
Revenue Next 2Y3.73%
Revenue Next 3Y3.64%
Revenue Next 5Y4.84%
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.
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
A Price/Earnings ratio of 47.06 indicates a quite expensive valuation of IPGP.
IPGP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of IPGP to the average of the S&P500 Index (23.99), we can say IPGP is valued expensively.
The Price/Forward Earnings ratio is 25.42, which means the current valuation is very expensive for IPGP.
The rest of the industry has a similar Price/Forward Earnings ratio as IPGP.
IPGP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.06 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
66.40% of the companies in the same industry are more expensive than IPGP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IPGP is valued cheaper than 81.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.56 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IPGP does not grow enough to justify the current Price/Earnings ratio.
IPGP's earnings are expected to grow with 31.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.85
PEG (5Y)N/A
EPS Next 2Y25.74%
EPS Next 3Y31.16%
5. Dividend
5.1 Amount
IPGP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.88
+2.97 (+5.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners62.07%
Inst Owner Change-1.89%
Ins Owners5.02%
Ins Owner Change0.03%
Market Cap2.47B
Analysts70.59
Price Target72.25 (24.83%)
Short Float %5.19%
Short Ratio3.29
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)1
Avg EPS beat(2)15.81%
Min EPS beat(2)-16.46%
Max EPS beat(2)48.08%
EPS beat(4)2
Avg EPS beat(4)5.87%
Min EPS beat(4)-16.46%
Max EPS beat(4)48.08%
EPS beat(8)5
Avg EPS beat(8)4.99%
EPS beat(12)8
Avg EPS beat(12)9.29%
EPS beat(16)10
Avg EPS beat(16)7.61%
Revenue beat(2)2
Avg Revenue beat(2)0.66%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.03%
Revenue beat(8)4
Avg Revenue beat(8)-0.99%
Revenue beat(12)6
Avg Revenue beat(12)-0.49%
Revenue beat(16)9
Avg Revenue beat(16)-0.28%
PT rev (1m)-2.67%
PT rev (3m)-13.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.91%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-6.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.06 | ||
| Fwd PE | 25.42 | ||
| P/S | 2.53 | ||
| P/FCF | 16.56 | ||
| P/OCF | 9.98 | ||
| P/B | 1.22 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 14.57 |
EPS(TTM)1.23
EY2.13%
EPS(NY)2.28
Fwd EY3.93%
FCF(TTM)3.5
FCFY6.04%
OCF(TTM)5.8
OCFY10.02%
SpS22.87
BVpS47.38
TBVpS44.51
PEG (NY)8.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.93% | ||
| ROE | -8.97% | ||
| ROCE | 0.69% | ||
| ROIC | 0.55% | ||
| ROICexc | 1% | ||
| ROICexgc | 1.12% | ||
| OM | 1.48% | ||
| PM (TTM) | N/A | ||
| GM | 34.61% | ||
| FCFM | 15.29% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 160.35% | ||
| Cap/Sales | 10.08% | ||
| Interest Coverage | 52.26 | ||
| Cash Conversion | 326.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.98 | ||
| Quick Ratio | 5.59 | ||
| Altman-Z | 8.01 |
F-Score4
WACC8.94%
ROIC/WACC0.06
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)-68.3%
EPS 3Y-34.65%
EPS 5Y-19.5%
EPS Q2Q%-40.38%
EPS Next Y5.32%
EPS Next 2Y25.74%
EPS Next 3Y31.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.1%
Revenue growth 3Y-12.55%
Revenue growth 5Y-5.76%
Sales Q2Q%-9.61%
Revenue Next Year0.56%
Revenue Next 2Y3.73%
Revenue Next 3Y3.64%
Revenue Next 5Y4.84%
EBIT growth 1Y-93.75%
EBIT growth 3Y-65.51%
EBIT growth 5Y-45.12%
EBIT Next Year168.27%
EBIT Next 3Y45.36%
EBIT Next 5Y28.3%
FCF growth 1Y-19.48%
FCF growth 3Y-17.56%
FCF growth 5Y-4.7%
OCF growth 1Y-16.25%
OCF growth 3Y-14%
OCF growth 5Y-5.18%