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IPG Photonics

Nasdaq:IPGP
Snowflake Description

Excellent balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IPGP
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The last earnings update was 21 days ago. More info.


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  • IPG Photonics has significant price volatility in the past 3 months.
IPGP Share Price and Events
7 Day Returns
-1.4%
NasdaqGS:IPGP
0.7%
US Electronic
1.6%
US Market
1 Year Returns
-39.6%
NasdaqGS:IPGP
0%
US Electronic
3.2%
US Market
IPGP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IPG Photonics (IPGP) -1.4% -2% 32.6% -39.6% 63.7% 121.2%
US Electronic 0.7% 0.9% 18.9% 0% 58.7% 59.1%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • IPGP underperformed the Electronic industry which returned 0% over the past year.
  • IPGP underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
IPGP
Industry
5yr Volatility vs Market
Related Companies

Value

 Is IPG Photonics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IPG Photonics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for IPG Photonics.

NasdaqGS:IPGP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IPGP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (0.56%))
1.051
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.051 * 5.96%)
8.99%

Discounted Cash Flow Calculation for NasdaqGS:IPGP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IPG Photonics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:IPGP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.99%)
2019 336.26 Analyst x3 308.51
2020 313.90 Analyst x4 264.24
2021 402.47 Analyst x1 310.84
2022 472.84 Analyst x1 335.06
2023 519.93 Est @ 9.96% 338.04
2024 560.45 Est @ 7.79% 334.31
2025 595.60 Est @ 6.27% 325.97
2026 626.64 Est @ 5.21% 314.66
2027 654.62 Est @ 4.47% 301.59
2028 680.45 Est @ 3.95% 287.62
Present value of next 10 years cash flows $3,120.85
NasdaqGS:IPGP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $680.45 × (1 + 2.73%) ÷ (8.99% – 2.73%)
$11,161.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,161.89 ÷ (1 + 8.99%)10
$4,718.10
NasdaqGS:IPGP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,120.85 + $4,718.10
$7,838.95
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,838.95 / 52.96
$148.01
NasdaqGS:IPGP Discount to Share Price
Calculation Result
Value per share (USD) From above. $148.01
Current discount Discount to share price of $151.72
= -1 x ($151.72 - $148.01) / $148.01
-2.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IPG Photonics is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IPG Photonics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IPG Photonics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:IPGP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $7.55
NasdaqGS:IPGP Share Price ** NasdaqGS (2019-03-19) in USD $151.72
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.48x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IPG Photonics.

NasdaqGS:IPGP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IPGP Share Price ÷ EPS (both in USD)

= 151.72 ÷ 7.55

20.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPG Photonics is overvalued based on earnings compared to the US Electronic industry average.
  • IPG Photonics is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does IPG Photonics's expected growth come at a high price?
Raw Data
NasdaqGS:IPGP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
9%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NasdaqGS:IPGP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.1x ÷ 9%

2.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPG Photonics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IPG Photonics's assets?
Raw Data
NasdaqGS:IPGP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $41.66
NasdaqGS:IPGP Share Price * NasdaqGS (2019-03-19) in USD $151.72
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NasdaqGS:IPGP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IPGP Share Price ÷ Book Value per Share (both in USD)

= 151.72 ÷ 41.66

3.64x

* Primary Listing of IPG Photonics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IPG Photonics is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess IPG Photonics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. IPG Photonics has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is IPG Photonics expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IPG Photonics expected to grow at an attractive rate?
  • IPG Photonics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • IPG Photonics's earnings growth is positive but not above the United States of America market average.
  • IPG Photonics's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:IPGP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:IPGP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 9%
NasdaqGS:IPGP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 9.6%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:IPGP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IPGP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,688 743 714 1
2022-12-31 2,372 681 626 1
2021-12-31 1,871 522 476 2
2020-12-31 1,596 444 403 11
2019-12-31 1,424 455 324 13
NasdaqGS:IPGP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,460 393 404
2018-09-30 1,491 389 381
2018-06-30 1,527 481 397
2018-03-31 1,483 454 379
2017-12-31 1,409 405 348
2017-09-30 1,328 399 370
2017-06-30 1,201 322 323
2017-03-31 1,085 284 286
2016-12-31 1,006 298 261
2016-09-30 950 258 246
2016-06-30 927 263 240
2016-03-31 910 269 234

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IPG Photonics's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • IPG Photonics's revenue is expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IPGP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from IPG Photonics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IPGP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 7.55 7.55 7.55 1.00
2020-12-31 7.47 8.75 6.38 10.00
2019-12-31 6.01 7.09 4.86 12.00
NasdaqGS:IPGP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 7.55
2018-09-30 7.11
2018-06-30 7.39
2018-03-31 7.07
2017-12-31 6.50
2017-09-30 6.93
2017-06-30 6.07
2017-03-31 5.38
2016-12-31 4.91
2016-09-30 4.65
2016-06-30 4.54
2016-03-31 4.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IPG Photonics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess IPG Photonics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IPG Photonics has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has IPG Photonics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IPG Photonics's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IPG Photonics's year on year earnings growth rate has been positive over the past 5 years.
  • IPG Photonics's 1-year earnings growth is less than its 5-year average (16.2% vs 19.1%)
  • IPG Photonics's earnings growth has not exceeded the US Electronic industry average in the past year (16.2% vs 48.8%).
Earnings and Revenue History
IPG Photonics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IPG Photonics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IPGP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,459.87 404.03 160.24 122.77
2018-09-30 1,490.88 381.42 151.26 117.86
2018-06-30 1,527.15 396.50 147.41 112.49
2018-03-31 1,482.91 379.00 140.77 106.64
2017-12-31 1,408.89 347.61 130.31 100.87
2017-09-30 1,327.96 369.79 122.43 96.39
2017-06-30 1,201.36 323.43 114.81 91.39
2017-03-31 1,084.77 286.37 108.64 83.84
2016-12-31 1,006.17 260.75 102.02 78.55
2016-09-30 949.68 246.32 98.39 74.21
2016-06-30 927.20 239.88 93.53 69.89
2016-03-31 909.55 234.12 90.67 66.59
2015-12-31 901.27 242.15 89.06 63.33
2015-09-30 885.04 237.88 88.76 59.38
2015-06-30 841.15 230.29 88.03 56.60
2015-03-31 798.22 217.27 86.22 54.85
2014-12-31 769.83 200.45 85.98 53.40
2014-09-30 728.29 180.61 83.15 50.47
2014-06-30 700.79 167.75 81.46 48.53
2014-03-31 676.76 161.18 79.96 45.65
2013-12-31 648.03 155.78 77.56 41.66
2013-09-30 627.21 154.10 74.34 40.05
2013-06-30 611.43 153.70 70.76 36.31
2013-03-31 581.19 149.72 65.67 33.06
2012-12-31 562.53 145.00 63.08 31.40
2012-09-30 541.02 141.67 61.29 28.71
2012-06-30 513.71 132.11 61.55 27.45
2012-03-31 497.72 125.10 61.14 26.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IPG Photonics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IPG Photonics used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • IPG Photonics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IPG Photonics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IPG Photonics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is IPG Photonics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IPG Photonics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IPG Photonics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IPG Photonics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IPG Photonics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 39.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IPG Photonics Company Filings, last reported 2 months ago.

NasdaqGS:IPGP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,206.24 45.38 1,044.79
2018-09-30 2,206.81 46.29 1,122.03
2018-06-30 2,172.16 47.19 1,125.76
2018-03-31 2,145.37 48.09 1,175.91
2017-12-31 2,022.32 48.98 1,116.16
2017-09-30 1,959.10 49.87 1,045.92
2017-06-30 1,804.36 22.56 930.42
2017-03-31 1,666.27 40.03 862.80
2016-12-31 1,557.72 40.82 830.63
2016-09-30 1,503.02 41.62 772.53
2016-06-30 1,423.16 42.42 714.08
2016-03-31 1,347.00 19.17 739.97
2015-12-31 1,260.67 19.67 689.12
2015-09-30 1,215.89 20.42 651.22
2015-06-30 1,163.76 22.27 571.51
2015-03-31 1,080.52 32.78 541.47
2014-12-31 1,046.56 35.63 522.15
2014-09-30 1,036.70 14.16 487.52
2014-06-30 1,023.86 15.02 483.43
2014-03-31 961.32 14.99 480.61
2013-12-31 927.97 16.39 448.78
2013-09-30 875.69 15.04 398.36
2013-06-30 815.97 15.73 369.48
2013-03-31 773.23 24.58 355.72
2012-12-31 742.93 18.82 384.05
2012-09-30 729.57 21.81 372.57
2012-06-30 669.73 21.36 355.34
2012-03-31 706.75 27.49 395.52
  • IPG Photonics's level of debt (2.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.8% vs 2.1% today).
  • Debt is well covered by operating cash flow (866.7%, greater than 20% of total debt).
  • IPG Photonics earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess IPG Photonics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IPG Photonics has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is IPG Photonics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from IPG Photonics dividends. Estimated to be 0% next year.
If you bought $2,000 of IPG Photonics shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate IPG Photonics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate IPG Photonics's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:IPGP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:IPGP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as IPG Photonics has not reported any payouts.
  • Unable to verify if IPG Photonics's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of IPG Photonics's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as IPG Photonics has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of IPG Photonics's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess IPG Photonics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IPG Photonics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IPG Photonics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of IPG Photonics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Valentin Gapontsev
COMPENSATION $2,284,683
AGE 79
TENURE AS CEO 29.2 years
CEO Bio

Dr. Valentin P. Gapontsev, Ph.D. has been the Founder, Chairman and Chief Executive Officer of IPG Photonics Corporation since 1990. Dr. Gapontsev served as a Managing Director of IPG Laser GmbH. In 1994, he Founded IPG Laser, a subsidiary of IPG Photonics Corporation and in 1997, he Founded IPG Fibertech. He founded the IPG Group with the creation of NTO IRE-POLUS and has been the President and Managing Director since its inception in 1991. Dr. Gapontsev served as senior scientist in laser material physics and head of the laboratory at the Soviet Academy of Science’s Institute of Radio Engineering and Electronics in Moscow. He has over thirty years of academic research experience in the fields of solid state laser materials, laser spectroscopy and non-radiative energy transfer between rare earth ions. He is the author of many scientific publications and several international patents. He has been a Director of IPG Photonics Corporation since 1990. In 2006, Dr. Gapontsev was awarded the Ernst & Young ® Entrepreneur of the Year Award for Industrial Products and Services in New England and in 2009, he was awarded the Arthur L. Schawlow Award by the Laser Institute of America. In 2011, he received the Russian Federation National Award in Science and Technology and he was also selected as a Fellow of the Optical Society of America. Dr. Gapontsev holds a Ph.D. in Physics from the Moscow Institute of Physics and Technology.

CEO Compensation
  • Valentin's compensation has increased by more than 20% in the past year.
  • Valentin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the IPG Photonics management team in years:

8.2
Average Tenure
56
Average Age
  • The average tenure for the IPG Photonics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Valentin Gapontsev

TITLE
Founder
COMPENSATION
$2M
AGE
79
TENURE
29.2 yrs

Tim Mammen

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
48
TENURE
18.7 yrs

Eugene Scherbakov

TITLE
COO, Senior VP of Europe & Director
COMPENSATION
$3M
AGE
70
TENURE
2.1 yrs

Angelo Lopresti

TITLE
Senior VP
COMPENSATION
$2M
AGE
54
TENURE
18.1 yrs

Trevor Ness

TITLE
Senior Vice President of Worldwide Sales & Marketing
COMPENSATION
$2M
AGE
45
TENURE
6.1 yrs

Tom Burgomaster

TITLE
VP, Corporate Controller

Igor Samartsev

TITLE
CTO & Director
AGE
55
TENURE
8.2 yrs

James Hillier

TITLE
Vice President of Investor Relations

Nikolai Platonov

TITLE
Principal Scientist and Department Head
AGE
61

Alexander Ovtchinnikov

TITLE
Senior Vice President of Components
COMPENSATION
$1M
AGE
57
TENURE
6.1 yrs
Board of Directors Tenure

Average tenure and age of the IPG Photonics board of directors in years:

8.8
Average Tenure
62.5
Average Age
  • The tenure for the IPG Photonics board of directors is about average.
Board of Directors

Valentin Gapontsev

TITLE
Founder
COMPENSATION
$2M
AGE
79
TENURE
29.2 yrs

Eugene Scherbakov

TITLE
COO, Senior VP of Europe & Director
COMPENSATION
$3M
AGE
70
TENURE
18.5 yrs

Igor Samartsev

TITLE
CTO & Director
AGE
55
TENURE
13.1 yrs

Thomas Seifert

TITLE
Independent Director
COMPENSATION
$324K
AGE
55
TENURE
4.8 yrs

Eric Meurice

TITLE
Independent Director
COMPENSATION
$322K
AGE
62
TENURE
4.8 yrs

Cathy Lego

TITLE
Independent Director
COMPENSATION
$324K
AGE
61
TENURE
2.7 yrs

John Peeler

TITLE
Presiding Independent Director
COMPENSATION
$329K
AGE
63
TENURE
1.8 yrs

Mike Child

TITLE
Independent Director
COMPENSATION
$300K
AGE
63
TENURE
18.5 yrs

Hank Gauthier

TITLE
Independent Director
COMPENSATION
$314K
AGE
77
TENURE
12.9 yrs

Greg Dougherty

TITLE
Director
AGE
58
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. May 18 Sell The Valentin Gapontsev Trust Company 21. May 18 21. May 18 -2,000 $245.63 $-491,260
15. May 18 Sell The Valentin Gapontsev Trust Company 14. May 18 14. May 18 -10,000 $253.88 $-2,538,800
08. May 18 Sell The Valentin Gapontsev Trust Company 04. May 18 07. May 18 -20,000 $233.96 $-4,674,500
X
Management checks
We assess IPG Photonics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IPG Photonics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

At US$154, Is It Time To Put IPG Photonics Corporation (NASDAQ:IPGP) On Your Watch List?

IPG Photonics Corporation (NASDAQ:IPGP), which is in the electronic business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at IPG Photonics’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Does IPG Photonics Corporation's (NASDAQ:IPGP) Recent Track Record Look Strong?

When IPG Photonics Corporation's (NASDAQ:IPGP) announced its latest earnings (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were IPG Photonics's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which IPGP is growing has slowed down

Simply Wall St -

IPG Photonics Corporation (NASDAQ:IPGP): What's The Analyst Consensus Outlook?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … IPG Photonics Corporation's (NASDAQ:IPGP) most recent earnings update in December 2018a

Simply Wall St -

Can IPG Photonics Corporation's (NASDAQ:IPGP) ROE Continue To Surpass The Industry Average?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.17. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Close Look At IPG Photonics Corporation’s (NASDAQ:IPGP) 24% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Is IPG Photonics Corporation's (NASDAQ:IPGP) CEO Being Overpaid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … The aim of all this is to consider the appropriateness of CEO pay levels. … How Does Valentin Gapontsev's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is IPG Photonics Corporation’s (NASDAQ:IPGP) Cash Outlook Optimistic?

If you are currently a shareholder in IPG Photonics Corporation (NASDAQ:IPGP), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … IPG Photonics generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … I will be analysing IPG Photonics’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

All You Need To Know About IPG Photonics Corporation's (NASDAQ:IPGP) Financial Health

Today we will look at IPGP’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of IPG Photonics's financial health, so you should conduct further analysis. … How does IPGP’s operating cash flow stack up against its debt?

Simply Wall St -

IPG Photonics Corporation (NASDAQ:IPGP): What We Can Expect From This Growth Stock

After IPG Photonics Corporation's (NASDAQ:IPGP) earnings announcement in September 2018,. … it seems that analyst expectations are fairly bearish, … the higher past 5-year average growth rate of 19%

Simply Wall St -

Should You Be Worried About Insider Transactions At IPG Photonics Corporation (NASDAQ:IPGP)?

So shareholders might well want to know whether insiders have been buying or selling shares in IPG Photonics Corporation (NASDAQ:IPGP). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at below the current price (US$141).

Simply Wall St -

Company Info

Description

IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include low, medium, and high power lasers; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; laser diode chips and packaged laser diodes; and high power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks, such as fiber to the home, fiber to the curb, passive optical networks, and dense wavelength division multiplexing (DWDM) networks; ytterbium and thulium specialty fiber amplifiers and broadband light sources; and single-frequency, linearly polarized, and polarization-maintaining versions of its amplifier products. In addition, the company offers interconnect, coarse wavelength division multiplexing, DWDM, and tunable-based pluggable interfaces to serve optical transmission needs; integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; and specialized fiber laser systems for material processing applications. Its lasers and amplifiers are also used in materials processing, advanced communications, and medical applications. The company markets its products to original equipment manufacturers, system integrators, and end users through direct sales force, as well as through agreements with independent sales representatives and distributors. IPG Photonics Corporation was founded in 1990 and is headquartered in Oxford, Massachusetts.

Details
Name: IPG Photonics Corporation
IPGP
Exchange: NasdaqGS
Founded: 1990
$8,035,396,005
52,962,009
Website: http://www.ipgphotonics.com
Address: IPG Photonics Corporation
50 Old Webster Road,
Oxford,
Massachusetts, 01540,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IPGP Common Stock Nasdaq Global Select US USD 13. Dec 2006
DB IPF Common Stock Deutsche Boerse AG DE EUR 13. Dec 2006
LSE 0J86 Common Stock London Stock Exchange GB USD 13. Dec 2006
BMV IPGP * Common Stock Bolsa Mexicana de Valores MX MXN 13. Dec 2006
Number of employees
Current staff
Staff numbers
6,220
IPG Photonics employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 00:01
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.