IPG PHOTONICS CORP (IPGP)
US44980X1090 - Common Stock
Overall IPGP gets a fundamental rating of 6 out of 10. We evaluated IPGP against 127 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year IPGP was profitable.
IPGP had a positive operating cash flow in the past year.
Each year in the past 5 years IPGP has been profitable.
Each year in the past 5 years IPGP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.11%, IPGP belongs to the best of the industry, outperforming 84.92% of the companies in the same industry.
IPGP has a Return On Equity of 9.06%. This is in the better half of the industry: IPGP outperforms 67.46% of its industry peers.
IPGP's Return On Invested Capital of 6.53% is fine compared to the rest of the industry. IPGP outperforms 67.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPGP is below the industry average of 9.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 9.06% | ||
| ROIC | 6.53% |
ROA(3y)6.97%
ROA(5y)6.59%
ROE(3y)7.94%
ROE(5y)7.49%
ROIC(3y)7.25%
ROIC(5y)7.14%
1.3 Margins
With an excellent Profit Margin value of 17.00%, IPGP belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
IPGP's Profit Margin has declined in the last couple of years.
IPGP has a better Operating Margin (17.99%) than 95.24% of its industry peers.
IPGP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 42.07%, IPGP is doing good in the industry, outperforming 76.19% of the companies in the same industry.
IPGP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.99% | ||
| PM (TTM) | 17% | ||
| GM | 42.07% |
OM growth 3Y-2.3%
OM growth 5Y-12.68%
PM growth 3Y8.55%
PM growth 5Y-9.28%
GM growth 3Y-2.14%
GM growth 5Y-5.15%
2. Health
2.1 Basic Checks
IPGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 11.29 indicates that IPGP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.29, IPGP belongs to the top of the industry, outperforming 92.06% 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 | 11.29 |
ROIC/WACC0.7
WACC9.26%
2.3 Liquidity
A Current Ratio of 8.91 indicates that IPGP has no problem at all paying its short term obligations.
IPGP has a Current ratio of 8.91. This is amongst the best in the industry. IPGP outperforms 89.68% of its industry peers.
A Quick Ratio of 6.80 indicates that IPGP has no problem at all paying its short term obligations.
IPGP has a better Quick ratio (6.80) than 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.91 | ||
| Quick Ratio | 6.8 |
3. Growth
3.1 Past
IPGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.23%.
The Earnings Per Share has been decreasing by -8.94% on average over the past years.
Looking at the last year, IPGP shows a decrease in Revenue. The Revenue has decreased by -9.93% in the last year.
IPGP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.48% yearly.
EPS 1Y (TTM)-7.23%
EPS 3Y19.46%
EPS 5Y-8.94%
EPS growth Q2Q-17.59%
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y2.35%
Revenue growth 5Y-2.48%
Revenue growth Q2Q-10.38%
3.2 Future
IPGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.19% yearly.
IPGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y-28.27%
EPS Next 2Y1.09%
EPS Next 3Y2.19%
EPS Next 5YN/A
Revenue Next Year-8.66%
Revenue Next 2Y1.86%
Revenue Next 3Y2.83%
Revenue Next 5Y5.65%
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
Based on the Price/Earnings ratio of 19.06, the valuation of IPGP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IPGP indicates a somewhat cheap valuation: IPGP is cheaper than 73.81% of the companies listed in the same industry.
IPGP is valuated rather cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.57 indicates a quite expensive valuation of IPGP.
IPGP's Price/Forward Earnings ratio is in line with the industry average.
IPGP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 26.57 |
4.2 Price Multiples
IPGP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IPGP is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IPGP is valued a bit cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
IPGP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.09%
EPS Next 3Y2.19%
5. Dividend
5.1 Amount
No dividends for IPGP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IPG PHOTONICS CORP
NASDAQ:IPGP (4/24/2024, 3:01:13 PM)
After market: 88.05 0 (0%)88.05
+2.68 (+3.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 26.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 9.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.99% | ||
| PM (TTM) | 17% | ||
| GM | 42.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.91 | ||
| Quick Ratio | 6.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.23%
EPS 3Y19.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y2.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y