IPG Photonics Corporation (IPGP)
Technology · NMS · US
Fundamentals
Valuation and ratings
IPG Photonics Corporation trades at USD103.36, which is 52% above the USD49.85 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 43 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 156.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About IPG Photonics Corporation
IPG Photonics Corporation develops, manufactures, and sells fiber lasers, fiber amplifiers, diode lasers, and laser-based systems used in materials processing, medical, and advanced applications. The company offers laser products, including hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; and high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers, as well as other versions. It also provides complementary products, such as optical fiber delivery cables, fiber couplers, beam switches, optical processing heads, process measuring and monitoring technologies, and in-line sensors and chillers. In addition, the company offers LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems; high precision laser systems for medical technology industry; multi axis Cartesian systems for fine welding, cutting, and drilling applications; laser and non-laser robotic welding and automation solutions; and related accessories for specific medical applications. The company sells and 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. It serves general manufacturing, automotive, consumer goods, medical devices, energy/renewable energy, micro electronics, original equipment manufacturers instrument manufacturing, scientific, as well as aerospace and defense, rail, and shipbuilding markets. IPG Photonics Corporation was founded in 1990 and is headquartered in Marlborough, Massachusetts.
IPGP passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- First Eagle, First Eagle Investment Management, LLC$526.35M · 0.9% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$47.70M · 0.0% of book
- Baillie Gifford, BAILLIE GIFFORD & CO$30.87M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$21.29M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$9.82M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is IPG Photonics Corporation (IPGP) undervalued?
Against our discounted cash flow estimate of USD49.85, IPGP at USD103.36 is 52% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own IPGP?
10 of the institutions we track reported a position in IPGP in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is IPGP's P/E ratio?
IPGP trades at 156.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for IPGP, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.