NasdaqGS:IPGP

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has IPG Photonics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IPGP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

IPGP

5.2%

US Electronic

2.9%

US Market


1 Year Return

22.4%

IPGP

8.6%

US Electronic

8.9%

US Market

Return vs Industry: IPGP exceeded the US Electronic industry which returned 8.6% over the past year.

Return vs Market: IPGP exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

IPGPIndustryMarket
7 Day3.8%5.2%2.9%
30 Day11.9%15.6%10.6%
90 Day32.8%8.6%5.1%
1 Year22.4%22.4%9.7%8.6%11.4%8.9%
3 Year13.1%13.1%21.3%17.9%34.3%25.4%
5 Year73.7%73.7%64.5%56.6%60.7%42.7%

Price Volatility Vs. Market

How volatile is IPG Photonics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IPG Photonics undervalued compared to its fair value and its price relative to the market?

53.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IPGP ($161.29) is trading above our estimate of fair value ($88.03)

Significantly Below Fair Value: IPGP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IPGP is poor value based on its PE Ratio (53x) compared to the Electronic industry average (20.3x).

PE vs Market: IPGP is poor value based on its PE Ratio (53x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: IPGP is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: IPGP is overvalued based on its PB Ratio (3.6x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is IPG Photonics forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPGP's forecast earnings growth (30.2% per year) is above the savings rate (2.2%).

Earnings vs Market: IPGP's earnings (30.2% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IPGP's revenue (15.6% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: IPGP's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPGP's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has IPG Photonics performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPGP has high quality earnings.

Growing Profit Margin: IPGP's current net profit margins (12.9%) are lower than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: IPGP's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: IPGP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IPGP had negative earnings growth (-54.2%) over the past year, making it difficult to compare to the Electronic industry average (-8%).


Return on Equity

High ROE: IPGP's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is IPG Photonics's financial position?


Financial Position Analysis

Short Term Liabilities: IPGP's short term assets ($1.9B) exceed its short term liabilities ($195.4M).

Long Term Liabilities: IPGP's short term assets ($1.9B) exceed its long term liabilities ($128.8M).


Debt to Equity History and Analysis

Debt Level: IPGP's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: IPGP's debt to equity ratio has reduced from 3% to 0.9% over the past 5 years.

Debt Coverage: IPGP's debt is well covered by operating cash flow (1652.7%).

Interest Coverage: IPGP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IPGP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IPGP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IPGP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IPGP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IPGP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Valentin Gapontsev (80yo)

30.42yrs

Tenure

US$1,251,984

Compensation

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,  ...


CEO Compensation Analysis

Compensation vs Market: Valentin's total compensation ($USD1.25M) is below average for companies of similar size in the US market ($USD7.17M).

Compensation vs Earnings: Valentin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Valentin Gapontsev
Founder30.42yrsUS$1.25m0.72% $61.9m
Timothy P. Mammen
Senior VP & CFO19.92yrsUS$2.08m0.066% $5.6m
Eugene Scherbakov
COO, Senior VP of Europe & Director19.75yrsUS$3.88m0.036% $3.1m
Angelo Lopresti
Senior VP19.33yrsUS$1.84m0.065% $5.5m
Alexander Ovtchinnikov
Senior Vice President of Components7.33yrsUS$1.82m0.14% $12.2m
Thomas Burgomaster
VP, Corporate Controllerno datano data0.0087% $745.8k
Igor Samartsev
CTO & Director14.33yrsno data1.75% $149.7m
James Hillier
Vice President of Investor Relationsno datano datano data
Trevor Ness
Senior Vice President of Worldwide Sales & Marketing7.33yrsUS$1.88m0.024% $2.1m
John Weaver
Vice President of Human Resources Worldwideno datano datano data

9.4yrs

Average Tenure

56yo

Average Age

Experienced Management: IPGP's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Valentin Gapontsev
Founder30.42yrsUS$1.25m0.72% $61.9m
Eugene Scherbakov
COO, Senior VP of Europe & Director19.75yrsUS$3.88m0.036% $3.1m
Igor Samartsev
CTO & Director14.33yrsno data1.75% $149.7m
Michael Child
Independent Director19.75yrsUS$293.69k0.066% $5.6m
John Peeler
Presiding Independent Director3yrsUS$323.69k0.017% $1.4m
Gregory Dougherty
Independent Director1.42yrsUS$432.04k0.0027% $234.3k
Catherine Lego
Independent Director3.92yrsUS$321.19k0.017% $1.5m
Eric Meurice
Independent Director6yrsUS$313.69k0.017% $1.5m
Thomas Seifert
Independent Director6yrsUS$318.69k0.016% $1.3m

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: IPGP's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IPG Photonics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IPG Photonics Corporation
  • Ticker: IPGP
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$8.553b
  • Shares outstanding: 53.03m
  • Website: https://www.ipgphotonics.com

Number of Employees


Location

  • IPG Photonics Corporation
  • 50 Old Webster Road
  • Oxford
  • Massachusetts
  • 1540
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPGPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2006
IPFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2006
IPGP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2006
0J86LSE (London Stock Exchange)YesCommon StockGBUSDDec 2006
I1PG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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 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; 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; and ytterbium and thulium specialty fiber amplifiers and broadband light sources. In addition, the company offers 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; and optical transceiver and transponder modules for interconnecting electronic equipment, including Ethernet switches, IP routers and SONET/SDH optical transport modules within telecommunications, cable multi-system operator, and data center networking 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 03:26
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.