|IPGP Overview
IPGP

IPG PHOTONICS CORP

Technology • CIK: 0001111928

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Market Cap
$3.03B
P/E (TTM)
96.8x
Rev Growth (TTM)
+2.7%
Net Margin (TTM)
3.1%
FCF Yield (TTM)
-0.1%
FCF Margin (TTM)
-0.3%

LATEST EARNINGS

Q4 2025
22 days ago
View source
Revenue
$274.50M
+17.2%
Net Income
$13.30M
EPS
$0.31
Gross
36.1% -2.5%
Operating
1.2% -4.8%
Net
4.8% +1.5%
  • Fourth quarter revenue of $274.5 million increased 17% year over year, driven by growth across materials processing, medical, and advanced applications.
  • Emerging growth products accounted for 54% of total revenue, increasing from 52% in the prior quarter.
  • Book-to-bill ratio was firmly above one on higher revenue, indicating strong future demand.
  • Adjusted EBITDA increased 11% year over year to $41.2 million.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$-3M
Q4 '25
$11M-25%
Q3 '25
$15M+183%
FCF Margin
TTM-0.3%
Q4 '254.0%-32%
Sector: 10.0%Below Avg
OCF Margin7.5%
OCF/NI2.42x
CapEx Coverage1.0x
FCF Yield-0.1%
FCF Growth (2Y)
Cash Conversion Cycle
221 days
DSO: 66+DIO: 178DPO: 23

Capital Allocation & Returns

Total Shareholder YieldFY
FY0.0%
Div Yield0.0%
+
Buyback (FY)1.8%

Insufficient data

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$-3.5M
Stock Repurchases (FY)$53.1M
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
0.4%
Volatile
+0.1% YoY+9.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
0.9%
8Q: 1.5%
Asset Turnover
0.43x
8Q: 0.40x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 0.4%0.4% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.63x
8Q:1.63x
Flat
Invested Cap Turn
0.51x
8Q:0.47x
+10.7%
CapEx Intensity
4.0%
8Q:4.4%
CapEx/Depreciation
1.18x
Depreciation Rate Trend
⚠ Declining -2.3%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$1.0B
$274.5M9.4%
$250.8M0.0%
$250.7M10.1%
$227.8M2.8%
$234.3M0.5%
$233.1M9.5%
$257.6M2.2%
$252.0M
Operating Income
$13.1M
$3.3M57.8%
$7.9M7452.9%
$104.0K94.3%
$1.8M86.9%
$14.0M105.5%
$-253.3M2204.2%
$12.0M37.0%
$19.1M
Net Income
$31.1M
$13.3M77.8%
$7.5M13.0%
$6.6M75.8%
$3.8M51.9%
$7.8M103.3%
$-233.6M1259.0%
$20.2M16.4%
$24.1M
Operating Cash Flow
$75.3M
$28.8M18.4%
$35.3M1693.2%
$-2.2M116.5%
$13.4M81.8%
$73.8M11.7%
$66.1M23.6%
$53.5M2.1%
$54.6M
Free Cash Flow
$-3.5M
$10.9M25.1%
$14.6M182.9%
$-17.6M54.5%
$-11.4M122.5%
$50.6M17.8%
$43.0M47.0%
$29.2M10.2%
$26.5M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
96.8x
Volatile
8Q: 330.0x+26077%
Valuation Lenses
Earnings
96.8x
vs sector
Cash Flow
-618.5x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
223.4P/E per %ROIC
ROIC: 0.4%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$3.03B
EV$2.14B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
38/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
1.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
0.4%
8Q:
+9.8%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 0.9%
Asset Turnover: 0.43x

Earnings Quality

Cash Conversion

2.42x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin38.0%

Capital Efficiency

Invested Capital Turnover0.51x

Working Capital

Cash Conversion Cycle221 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
53/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
2.7%
OpInc Growth YoY
-76.2%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
38.0%
Operating
1.3%
Below Avg in sector
Net
3.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-3.4 pts
FCF: -0.3% | Net: 3.1%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $839.33M
Interest Coverage
+Net cash position: $839.33M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis