NasdaqGS:IPGP

Stock Analysis Report

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

Fundamentals

Excellent 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


Market Performance


7 Day Return

5.9%

IPGP

2.4%

US Electronic

0.07%

US Market


1 Year Return

5.6%

IPGP

16.3%

US Electronic

8.9%

US Market

Return vs Industry: IPGP underperformed the US Electronic industry which returned 16.3% over the past year.

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


Shareholder returns

IPGPIndustryMarket
7 Day5.9%2.4%0.07%
30 Day4.9%3.7%-0.3%
90 Day-2.8%2.3%-1.6%
1 Year5.6%5.6%17.5%16.3%11.3%8.9%
3 Year65.5%65.5%55.8%51.4%46.3%36.8%
5 Year101.1%101.1%83.7%74.7%62.1%44.3%

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?

24.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IPGP ($139.65) is trading above our estimate of fair value ($86.88)

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 (24.5x) compared to the Electronic industry average (19.6x).

PE vs Market: IPGP is poor value based on its PE Ratio (24.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: IPGP is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: IPGP is overvalued based on its PB Ratio (3.1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is IPG Photonics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPGP's forecast earnings growth (20.6% per year) is above the savings rate (2.7%).

Earnings vs Market: IPGP's earnings (20.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: IPGP's revenue (13.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: IPGP's revenue (13.3% 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 (11.8%).


Next Steps

Past Performance

How has IPG Photonics performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IPGP's earnings have grown by 15.3% 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 (-23.5%) over the past year, making it difficult to compare to the Electronic industry average (58.6%).


Return on Equity

High ROE: IPGP's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: IPGP has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: IPGP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is IPG Photonics's financial position?


Financial Position Analysis

Short Term Liabilities: IPGP's short term assets ($1.9B) exceeds its short term liabilities ($222.2M)

Long Term Liabilities: IPGP's short term assets (1.9B) exceeds its long term liabilities (147.8M)


Debt to Equity History and Analysis

Debt Level: IPGP's debt to equity ratio (1.8%) is considered satisfactory

Reducing Debt: IPGP's debt to equity ratio has increased from 1.5% to 1.8% over the past 5 years.

Debt Coverage: IPGP's debt is well covered by operating cash flow (657.9%).

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


Balance Sheet

Inventory Level: IPGP has a high level of physical assets or inventory.

Debt Coverage by Assets: IPGP's debt is covered by short term assets (assets are 42.779310x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

8.8yrs

Average management tenure


CEO

Valentin Gapontsev (80yo)

29.8yrs

Tenure

US$1,653,996

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 ($USD1.65M) is below average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

8.8yrs

Average Tenure

57yo

Average Age

Experienced Management: IPGP's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: IPGP's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Valentin Gapontsev (80yo)

    Founder

    • Tenure: 29.8yrs
    • Compensation: US$1.65m
  • Tim Mammen (49yo)

    Senior VP & CFO

    • Tenure: 19.3yrs
    • Compensation: US$2.16m
  • Angelo Lopresti (55yo)

    Senior VP

    • Tenure: 18.7yrs
    • Compensation: US$1.92m
  • Eugene Scherbakov (71yo)

    COO, Senior VP of Europe & Director

    • Tenure: 19.1yrs
    • Compensation: US$4.07m
  • Igor Samartsev (56yo)

    CTO & Director

    • Tenure: 13.7yrs
  • Nikolai Platonov (62yo)

    Principal Scientist and Department Head

    • Tenure: 0yrs
  • James Hillier

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Alexander Ovtchinnikov (58yo)

    Senior Vice President of Components

    • Tenure: 6.7yrs
    • Compensation: US$2.20m
  • Trevor Ness (46yo)

    Senior Vice President of Worldwide Sales & Marketing

    • Tenure: 6.7yrs
    • Compensation: US$1.88m
  • Tom Burgomaster

    VP, Corporate Controller

    • Tenure: 0yrs

Board Members

  • Mike Child (64yo)

    Independent Director

    • Tenure: 19.1yrs
    • Compensation: US$299.68k
  • Hank Gauthier (78yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$304.68k
  • John Peeler (64yo)

    Presiding Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$329.68k
  • Greg Dougherty (59yo)

    Independent Director

    • Tenure: 0.8yrs
  • Cathy Lego (62yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$327.18k
  • Valentin Gapontsev (80yo)

    Founder

    • Tenure: 29.8yrs
    • Compensation: US$1.65m
  • Eric Meurice (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$319.68k
  • Eugene Scherbakov (71yo)

    COO, Senior VP of Europe & Director

    • Tenure: 19.1yrs
    • Compensation: US$4.07m
  • Igor Samartsev (56yo)

    CTO & Director

    • Tenure: 13.7yrs
  • Thomas Seifert (56yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$324.68k

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$7.429b
  • Shares outstanding: 53.20m
  • 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

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. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:59
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.