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.

Risks

  • IPG Photonics has significant price volatility in the past 3 months.

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

5.8%

NasdaqGS:IPGP

-0.03%

US Electronic

0.2%

US Market


1 Year Return

-26.1%

NasdaqGS:IPGP

-7.7%

US Electronic

-0.7%

US Market

IPGP underperformed the Electronic industry which returned -5.9% over the past year.

IPGP underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

IPGPIndustryMarket
7 Day5.8%-0.03%0.2%
30 Day-8.7%-4.7%-2.7%
90 Day-5.6%0.7%1.6%
1 Year-26.1%-26.1%-6.8%-7.7%1.6%-0.7%
3 Year42.8%42.8%43.3%39.4%40.0%30.9%
5 Year77.7%77.7%50.9%43.7%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

21.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

IPG Photonics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

IPG Photonics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

IPG Photonics is poor value based on expected growth next year.


Price Based on Value of Assets

IPG Photonics is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IPG Photonics's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

IPG Photonics's earnings are expected to grow significantly at over 20% yearly.

IPG Photonics's revenue growth is expected to exceed the United States of America market average.

IPG Photonics's earnings growth is expected to exceed the United States of America market average.

IPG Photonics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

IPG Photonics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 negative, it can't be compared to the 5-year average.

IPG Photonics's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.


Return on Equity

IPG Photonics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

IPG Photonics used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

IPG Photonics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is IPG Photonics's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

IPG Photonics's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.5% vs 1.8% today).

Debt is well covered by operating cash flow (657.9%, greater than 20% of total debt).

IPG Photonics earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 42.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Valentin Gapontsev (80yo)

29.6yrs

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

Valentin's remuneration is lower than average for companies of similar size in United States of America.

Valentin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.6yrs

Average Tenure

57yo

Average Age

The average tenure for the IPG Photonics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.3yrs

Average Tenure

63.5yo

Average Age

The tenure for the IPG Photonics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Valentin Gapontsev (80yo)

    Founder

    • Tenure: 29.6yrs
    • Compensation: US$1.65m
  • Tim Mammen (49yo)

    Senior VP & CFO

    • Tenure: 19.1yrs
    • Compensation: US$2.16m
  • Angelo Lopresti (55yo)

    Senior VP

    • Tenure: 18.5yrs
    • Compensation: US$1.92m
  • Eugene Scherbakov (71yo)

    COO, Senior VP of Europe & Director

    • Tenure: 18.9yrs
    • Compensation: US$4.07m
  • Igor Samartsev (56yo)

    CTO & Director

    • Tenure: 13.5yrs
  • Nikolai Platonov (62yo)

    Principal Scientist and Department Head

    • Tenure: 0.0yrs
  • James Hillier

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Alexander Ovtchinnikov (58yo)

    Senior Vice President of Components

    • Tenure: 6.5yrs
    • Compensation: US$2.20m
  • Trevor Ness (46yo)

    Senior Vice President of Worldwide Sales & Marketing

    • Tenure: 6.5yrs
    • Compensation: US$1.88m
  • Tom Burgomaster

    VP, Corporate Controller

    • Tenure: 0.0yrs

Board Members

  • Mike Child (64yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$299.68k
  • Hank Gauthier (78yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$304.68k
  • John Peeler (64yo)

    Presiding Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$329.68k
  • Greg Dougherty (59yo)

    Director

    • Tenure: 0.6yrs
  • Cathy Lego (62yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$327.18k
  • Valentin Gapontsev (80yo)

    Founder

    • Tenure: 29.6yrs
    • Compensation: US$1.65m
  • Eric Meurice (63yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$319.68k
  • Eugene Scherbakov (71yo)

    COO, Senior VP of Europe & Director

    • Tenure: 18.9yrs
    • Compensation: US$4.07m
  • Igor Samartsev (56yo)

    CTO & Director

    • Tenure: 13.5yrs
  • Thomas Seifert (56yo)

    Independent Director

    • Tenure: 5.2yrs
    • 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$6.553b
  • 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 Analysis2019/08/21 00:08
End of Day Share Price2019/08/20 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.