A Business at a Glance
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IPG PHOTONICS CORP
IPGP
$3.9B
Mkt Cap
$91.70
-4.93%
IPG PHOTONICS CORP (IPGP) has a current P/E ratio of 125.6, compared to its historical median P/E of 33.5. The stock is currently considered Expensive based on its historical valuation range.
IPG PHOTONICS CORP (IPGP) has a 5-year average return on invested capital (ROIC) of 7.5%. This is below average and may indicate limited pricing power.
IPG PHOTONICS CORP (IPGP) has a market capitalization of $3.9B. It is classified as a mid-cap stock.
IPG PHOTONICS CORP (IPGP) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.37%.
Based on historical P/E analysis, IPG PHOTONICS CORP (IPGP) appears expensive. The current P/E of 125.6 is 275% above its historical median of 33.5. The estimated fair value CAGR (P/E method) is -17.1%.
IPG PHOTONICS CORP (IPGP) operates in the Semiconductors & Related Devices industry, within the Technology sector.
IPG PHOTONICS CORP (IPGP) reported annual revenue of $1.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
IPG Photonics develops, manufactures, and sells high-performance fiber lasers, fiber amplifiers, diode lasers, and laser-based systems for materials processing, medical, and advanced applications. The company operates a vertically integrated business model, designing and manufacturing key components from semiconductor diodes to optical fiber preforms and finished laser systems, as well as complementary products including optical delivery cables, beam switches, and chillers, which enables quality control, rapid product development, and proprietary technology protection. IPG distributes its products globally to original equipment manufacturers, system integrators, and end users primarily through a direct sales force, with major manufacturing facilities in the United States and Germany and sales and service offices worldwide. Fiber lasers provide superior performance, reliability, and cost advantages compared to alternative laser and non-laser technologies by combining semiconductor diode efficiency with specialty optical fiber amplification, delivering benefits including lower cost of ownership, environmental friendliness, compact footprint, and precise beam control. The company targets diverse end-markets including cutting, welding, marking, engraving, additive manufacturing, cleaning, medical applications, defense systems, and semiconductor equipment manufacturing, with growth initiatives addressing new addressable markets in medical, defense, and micromachining applications.
【Demand stabilization and strategic growth】 Management reports continued revenue stabilization with first-quarter 2026 revenue growth of 17% year-over-year, driven by improved demand in battery manufacturing and medical applications, providing confidence in the outlook despite macroeconomic uncertainty. The company is advancing its innovation roadmap with several new product approvals and introductions expected in 2026 and 2027, including medical products and defense systems, while maintaining a strong backlog that provides excellent visibility into full-year revenue. Gross margin improvement is expected to continue through cost reduction and pricing initiatives, though tariff headwinds of approximately 150 basis points are anticipated to persist in 2026; management remains focused on executing key growth initiatives across industrial and advanced solutions to expand addressable market opportunities and support sustained long-term growth. Operating expenses are expected to increase moderately during 2026 to support acceleration of growth initiatives, while the company maintains a strong balance sheet and continues opportunistic share repurchases under a new $100 million authorization.
| Metric | Target | Period |
|---|---|---|
| Capital expenditures | $90 million–$100 million | FY2026 |
Capital expenditures (FY2026): “we have specific initiatives underway to improve our operational efficiency. We expect the impact from tariffs to persist in 2026 and continue to work on ways to offset their impact, including cost reduction and pricing initiatives. Total GAAP operating expenses were $107 million. Both adjusted EPS and adjusted EBITDA came in above the midpoints of our guidance ranges. Moving to a summary of our balance sheet and cash flow on slide eight. During the first quarter, we spent $16 million on capital expenditures, below the expected run rate given our CapEx budget of $90 million-$100 million this year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Materials processing | $1.33B | $1.29B | $1.15B | $857M | $860M | 43% |
High Power Continuous Wave ("CW") Lasers | $687M | $614M | $525M | $333M | $309M | 15% |
Other Revenue including Other Lasers, Amplifiers, Service, Parts, Accessories | — | — | $295M | $247M | $265M | 13% |
Laser and Non-Laser Systems | $127M | $153M | $161M | $139M | $147M | 7% |
Other applications | $135M | $138M | $135M | $120M | $144M | 7% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.0B | 1.0B | 977M | 1.3B | 1.4B | 1.5B |
| Net Income | 29M | 31M | -182M | 219M | 110M | 278M |
| EPS | $0.69 | $0.73 | $-4.09 | $4.63 | $2.16 | $5.16 |
| Free Cash Flow | -14M | -3.5M | 149M | 186M | 103M | 267M |
| ROIC | 1.4% | 0.8% | -8.1% | 14.8% | 8.2% | 22.1% |
| Gross Margin | 37.6% | 38.0% | 34.6% | 42.1% | 38.9% | 47.7% |
| Debt/Equity | 0.00 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 3.5M | 13M | -208M | 232M | 170M | 368M |
| Operating Margin | 0.3% | 1.3% | -21.3% | 18.0% | 11.9% | 25.2% |
| ROE | 1.4% | 1.5% | -8.2% | 9.1% | 4.3% | 10.4% |
| Shares Outstanding | 42M | 43M | 44M | 47M | 51M | 54M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 770M | 901M | 1.0B | 1.4B | 1.5B | 1.3B | 1.2B | 1.5B | 1.4B | 1.3B | 977M | 1.0B | 1.0B |
| Gross Margin | 54.1% | 54.6% | 54.9% | 56.6% | 54.8% | 46.1% | 44.9% | 47.7% | 38.9% | 42.1% | 34.6% | 38.0% | 37.6% |
| R&D | 53M | 63M | 79M | 101M | 123M | 130M | 127M | 140M | 116M | 99M | 110M | 117M | 122M |
| SG&A | 55M | 57M | 66M | 81M | 102M | 108M | 110M | 126M | 131M | 126M | 124M | 143M | 146M |
| EBIT | 284M | 342M | 364M | 551M | 523M | 234M | 199M | 368M | 170M | 232M | -208M | 13M | 3.5M |
| Op. Margin | 36.9% | 38.0% | 36.2% | 39.1% | 35.9% | 17.8% | 16.5% | 25.2% | 11.9% | 18.0% | -21.3% | 1.3% | 0.3% |
| Net Income | 200M | 242M | 261M | 348M | 404M | 180M | 160M | 278M | 110M | 219M | -182M | 31M | 29M |
| Net Margin | 26.0% | 26.9% | 25.9% | 24.7% | 27.7% | 13.7% | 13.3% | 19.1% | 7.7% | 17.0% | -18.6% | 3.1% | 2.8% |
| Non-Recurring | 0 | 15M | 23M | 0 | 0 | 39M | 45M | 0 | 42M | 46M | -190M | 601K | 601K |
| Returns on Capital | |||||||||||||
| ROIC | 37.9% | 42.1% | 38.2% | 38.4% | 36.6% | 13.6% | 12.3% | 22.1% | 8.2% | 14.8% | -8.1% | 0.8% | 1.4% |
| ROE | 20.3% | 21.0% | 18.5% | 19.4% | 19.1% | 7.8% | 6.4% | 10.4% | 4.3% | 9.1% | -8.2% | 1.5% | 1.4% |
| ROA | 17.6% | 18.2% | 16.1% | 16.7% | 16.4% | 6.8% | 5.6% | 9.1% | 3.7% | 8.0% | -7.3% | 1.3% | 1.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 180M | 263M | 298M | 405M | 393M | 324M | 285M | 390M | 213M | 296M | 248M | 75M | 56M |
| Free Cash Flow | 92M | 193M | 171M | 279M | 233M | 190M | 198M | 267M | 103M | 186M | 149M | -3.5M | -14M |
| Owner Earnings | 129M | 202M | 224M | 318M | 285M | 194M | 155M | 256M | 84M | 187M | 149M | -34M | -53M |
| CapEx | 89M | 70M | 127M | 127M | 160M | 134M | 88M | 123M | 110M | 110M | 99M | 79M | 70M |
| Maint. CapEx | 36M | 42M | 51M | 65M | 80M | 96M | 95M | 96M | 91M | 70M | 61M | 67M | 67M |
| Growth CapEx | 53M | 28M | 76M | 62M | 80M | 37M | 0 | 27M | 20M | 41M | 37M | 12M | 2.9M |
| D&A | 36M | 42M | 51M | 65M | 80M | 96M | 95M | 96M | 91M | 70M | 61M | 67M | 67M |
| CapEx/OCF | 49.2% | 26.6% | 42.7% | 31.2% | 40.8% | 41.3% | 30.7% | 31.6% | 51.8% | 37.3% | 39.7% | 104.6% | 124.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 8.9M | 40M | 176M | 41M | 38M | 135M | 500M | 223M | 344M | 53M | 53M |
| Buyback Yield | N/A | N/A | 0.2% | 0.3% | 2.8% | 0.5% | 0.3% | 1.5% | 10.9% | 4.3% | 10.6% | 1.7% | 1.4% |
| Stock-Based Comp | 15M | 19M | 22M | 23M | 28M | 33M | 35M | 38M | 38M | 40M | 37M | 43M | 42M |
| Debt Repayment | 1.7M | 13M | 2.6M | 20M | 3.6M | 3.7M | 3.7M | 3.8M | 18M | 16M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -487M | -669M | -790M | -1.1B | -999M | -1.1B | -1.3B | -1.5B | -1.1B | -1.1B | -912M | -822M | -813M |
| Cash & Equiv. | 522M | 583M | 624M | 910M | 544M | 680M | 876M | 709M | 698M | 515M | 620M | 404M | 813M |
| Long-Term Debt | 20M | 18M | 38M | 45M | 42M | 38M | 34M | 16M | 0 | 16M | 0 | 0 | N/A |
| Debt/Equity | 0.03 | 0.02 | 0.03 | 0.02 | 0.02 | 0.03 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.00 |
| Interest Coverage | 1477.9 | 782.7 | 2235.0 | 4554.6 | 829.5 | 430.6 | 651.3 | 1024.7 | 1008.9 | 359.1 | -596.7 | 9.7 | 9.7 |
| Equity | 1.0B | 1.3B | 1.6B | 2.0B | 2.2B | 2.4B | 2.6B | 2.7B | 2.4B | 2.4B | 2.0B | 2.1B | 2.1B |
| Total Assets | 1.2B | 1.5B | 1.8B | 2.4B | 2.6B | 2.7B | 2.9B | 3.2B | 2.7B | 2.7B | 2.3B | 2.4B | 2.4B |
| Total Liabilities | 164M | 193M | 232M | 345M | 368M | 328M | 342M | 423M | 358M | 284M | 265M | 296M | 306M |
| Intangibles | 9.2M | 12M | 29M | 51M | 87M | 74M | 62M | 53M | 34M | 26M | 55M | 50M | 47M |
| Retained Earnings | 591M | 833M | 1.1B | 1.4B | 1.8B | 2.0B | 2.2B | 2.5B | 2.6B | 2.8B | 2.6B | 2.6B | 2.6B |
| Working Capital | 772M | 961M | 1.1B | 1.6B | 1.6B | 1.7B | 1.9B | 2.0B | 1.7B | 1.7B | 1.2B | 1.2B | 1.2B |
| Current Assets | 894M | 1.1B | 1.3B | 1.8B | 1.8B | 1.9B | 2.1B | 2.3B | 2.0B | 1.9B | 1.4B | 1.4B | 1.4B |
| Current Liabilities | 122M | 142M | 158M | 199M | 246M | 192M | 215M | 313M | 275M | 215M | 205M | 234M | 247M |
| Per Share Data | |||||||||||||
| EPS | 3.79 | 4.53 | 4.85 | 6.36 | 7.38 | 3.35 | 2.97 | 5.16 | 2.16 | 4.63 | -4.09 | 0.73 | 0.69 |
| Owner EPS | 2.45 | 3.78 | 4.18 | 5.81 | 5.21 | 3.60 | 2.89 | 4.74 | 1.65 | 3.95 | 3.37 | -0.81 | -1.26 |
| Book Value | 19.79 | 23.56 | 28.97 | 37.00 | 40.29 | 44.64 | 48.26 | 50.90 | 46.88 | 51.09 | 45.61 | 49.96 | 49.85 |
| Cash Flow/Share | 3.41 | 4.93 | 5.54 | 7.42 | 7.18 | 6.01 | 5.31 | 7.22 | 4.18 | 6.26 | 5.59 | 1.77 | 2.27 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 52.9M | 53.5M | 53.8M | 54.7M | 54.7M | 53.8M | 53.7M | 54.0M | 50.9M | 47.3M | 44.4M | 42.6M | 42.4M |
| Valuation | |||||||||||||
| P/E Ratio | 19.9 | 20.2 | 20.5 | 33.8 | 15.6 | 43.0 | 75.8 | 33.1 | 41.8 | 23.8 | N/A | 103.0 | 133.8 |
| P/FCF | 43.5 | 25.3 | 31.4 | 42.2 | 27.0 | 40.8 | 61.2 | 34.6 | 44.8 | 28.1 | 21.8 | N/A | N/A |
| EV/EBIT | 12.3 | 12.3 | 12.5 | 19.4 | 10.1 | 28.2 | 54.1 | 21.0 | 20.2 | 17.4 | N/A | N/A | 869.6 |
| Price/Book | 3.8 | 3.9 | 3.4 | 5.8 | 2.9 | 3.2 | 4.7 | 3.4 | 1.9 | 2.2 | 1.6 | 1.5 | 1.8 |
| Price/Sales | 4.7 | 5.2 | 4.7 | 6.0 | 7.5 | 5.8 | 7.1 | 7.3 | 3.8 | 4.1 | 3.8 | 3.1 | 3.7 |
| FCF Yield | 2.3% | 4.0% | 3.2% | 2.4% | 3.7% | 2.5% | 1.6% | 2.9% | 2.2% | 3.6% | 4.6% | -0.1% | -0.4% |
| Market Cap | 4.0B | 4.9B | 5.4B | 11.8B | 6.3B | 7.7B | 12.1B | 9.2B | 4.6B | 5.2B | 3.3B | 3.2B | 3.9B |
| Avg. Price | 69.02 | 87.52 | 87.35 | 155.70 | 200.54 | 140.81 | 159.05 | 196.96 | 106.25 | 110.58 | 83.02 | 72.49 | 91.70 |
| Year-End Price | 75.31 | 91.42 | 99.52 | 215.25 | 115.00 | 143.92 | 225.05 | 170.87 | 90.28 | 110.10 | 73.42 | 75.18 | 91.70 |
IPG PHOTONICS CORP passes 1 of 9 quality checks, indicating weak fundamentals.
IPG PHOTONICS CORP trades at 125.6x trailing earnings, compared to its 15-year median P/E of 33.5x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 7.5% with a gross margin of 40.2%. Total shareholder yield (buybacks) is 1.4%. At current prices, the estimated annualized return to fair value is -8.8%.
IPG PHOTONICS CORP (IPGP) has a net profit margin of 3.1%. This is a modest margin.
IPG PHOTONICS CORP (IPGP) generated $-3 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
IPG PHOTONICS CORP (IPGP) has a debt-to-equity ratio of 0.01. This indicates a conservatively financed balance sheet.
IPG PHOTONICS CORP (IPGP) reported earnings per share (EPS) of $0.73 in its most recent fiscal year.
IPG PHOTONICS CORP (IPGP) has a return on equity (ROE) of 1.5%. This indicates moderate shareholder returns.
IPG PHOTONICS CORP (IPGP) has a 5-year average gross margin of 40.2%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for IPG PHOTONICS CORP (IPGP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
IPG PHOTONICS CORP (IPGP) has a book value per share of $49.96, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management reports continued revenue stabilization with first-quarter 2026 revenue growth of 17% year-over-year, driven by improved demand in battery manufacturing and medical applications, providing confidence in the outlook despite macroeconomic uncertainty. The company is advancing its innovation roadmap with several new product approvals and introductions expected in 2026 and 2027, including medical products and defense systems, while maintaining a strong backlog that provides excellent visibility into full-year revenue. Gross margin improvement is expected to continue through cost reduction and pricing initiatives, though tariff headwinds of approximately 150 basis points are anticipated to persist in 2026; management remains focused on executing key growth initiatives across industrial and advanced solutions to expand addressable market opportunities and support sustained long-term growth. Operating expenses are expected to increase moderately during 2026 to support acceleration of growth initiatives, while the company maintains a strong balance sheet and continues opportunistic share repurchases under a new $100 million authorization.
Based on recent SEC filings and earnings calls, IPG PHOTONICS CORP (IPGP) has provided the following forward guidance: Capital expenditures: $90 million–$100 million (FY2026).