IPG Photonics Corporation
IPG Photonics Corporation Fundamental Analysis
IPG Photonics Corporation (IPGP) shows weak financial fundamentals with a PE ratio of 182.15, profit margin of 3.10%, and ROE of 1.48%. The company generates $1.0B in annual revenue with weak year-over-year growth of -24.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IPGP's fundamental strength across five key dimensions:
Efficiency Score
WeakIPGP struggles to generate sufficient returns from assets.
Valuation Score
WeakIPGP trades at a premium to fair value.
Growth Score
WeakIPGP faces weak or negative growth trends.
Financial Health Score
ExcellentIPGP maintains a strong and stable balance sheet.
Profitability Score
WeakIPGP struggles to sustain strong margins.
Key Financial Metrics
Is IPGP Expensive or Cheap?
P/E Ratio
IPGP trades at 182.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IPGP's PEG of 7.94 indicates potential overvaluation.
Price to Book
The market values IPG Photonics Corporation at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 63.39 times EBITDA. This signals the market has high growth expectations.
How Well Does IPGP Make Money?
Net Profit Margin
For every $100 in sales, IPG Photonics Corporation keeps $3.10 as profit after all expenses.
Operating Margin
Core operations generate 1.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.48 in profit for every $100 of shareholder equity.
ROA
IPG Photonics Corporation generates $1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IPG Photonics Corporation generates limited operating cash flow of $75.39M, signaling weaker underlying cash strength.
Free Cash Flow
IPG Photonics Corporation generates weak or negative free cash flow of $-3.46M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.08 in free cash annually.
FCF Yield
IPGP converts -0.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
182.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How IPGP Stacks Against Its Sector Peers
| Metric | IPGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 182.15 | 34.79 | Worse (Expensive) |
| ROE | 1.48% | 1185.00% | Weak |
| Net Margin | 3.10% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 6.08 | 4.90 | Strong Liquidity |
| ROA | 1.28% | -324805.00% (disorted) | Weak |
IPGP outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IPG Photonics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.04%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-220.54%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-8.30%
Industry Style: Growth, Innovation, High Beta
Declining