IPG Photonics (IPGP) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: N/A
• Average Volume (3M): 266.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -20.08%
• EPS Growth: -218.29%
• Country: US
• Employees: 4,740
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.09
• Shares Outstanding: 42,534,660
• 10 Day Avg. Volume: 258,605
• 30 Day Avg. Volume: 266,476
• PEG Ratio: 1.35
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.19
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 5.95
• 1Y Price Target: $68.00
• Price Target Upside: -4.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $69.00 ▼(-2.89%Downside)

IPG Photonics' overall stock score reflects significant financial challenges, particularly in profitability and revenue growth. Technical indicators offer some short-term optimism, but valuation concerns due to negative earnings weigh heavily. The earnings call provides a mixed outlook, highlighting both opportunities in emerging markets and ongoing challenges in traditional segments.

Positive Factors

Bookings

Bookings were solid, with the BTB at the highest level in over two years as IPG saw stable-to-improving demand across its major geographies.

China Sales

By region, China sales increased 21.9% sequentially and 8.1% y/y.

New Customer

Medical revenue grew, benefiting from shipments to a new urology customer.

Negative Factors

High Power Laser Sales

High power laser sales declined by 11.5% sequentially and 23.6% y/y.

Revenue Decline

Total revenue decreased 10% YoY with lower sales in cutting and welding applications offsetting growth in other materials processing applications, medical and advanced applications.

Tariff Impact

Shares fall as Q2 outlook weighed down by tariffs.

IPG Photonics Business Overview & Revenue Model

Company Description

IPG Photonics Corporation is a leading developer and manufacturer of high-performance fiber lasers and amplifiers for a diverse range of applications in numerous industries, including materials processing, communications, medical, and advanced technologies. Founded in 1990 and headquartered in Oxford, Massachusetts, IPG Photonics has established itself as a pioneer in the fiber laser industry, offering cutting-edge solutions that enable greater precision, efficiency, and cost-effectiveness compared to traditional laser technologies.

How the Company Makes Money

IPG Photonics makes money primarily through the sale of its fiber lasers and amplifiers, which are used in various applications such as cutting, welding, marking, and engraving across multiple industries. The company's revenue streams include direct sales to manufacturers and businesses, as well as through distributors and integrators who incorporate IPG's laser technology into broader systems and solutions. Additionally, IPG Photonics benefits from a strong global presence with manufacturing facilities and sales offices strategically located around the world, allowing them to serve a broad customer base efficiently. The company's earnings are further supported by its investment in research and development, which helps maintain its technological edge and expand its product offerings, thereby attracting new customers and driving repeat business from existing clients. Key factors contributing to IPG Photonics' earnings include its ability to scale production efficiently, maintain high-quality standards, and establish strategic partnerships with industry leaders to enhance its market reach.

IPG Photonics Financial Statement Overview

Summary

IPG Photonics faces financial challenges with negative profitability metrics and declining revenue growth. However, a strong balance sheet with low leverage provides some stability.

Income Statement

The income statement reflects a challenging period for IPG Photonics. Gross profit margin and net profit margin have declined significantly in the TTM, indicating pressure on profitability. The company reported a negative EBIT and net income, suggesting operational and financial difficulties. Revenue growth has also been negative, showing a decreasing trend over recent periods.

Balance Sheet

IPG Photonics maintains a strong balance sheet with a low debt-to-equity ratio, indicating minimal leverage and financial stability. The equity ratio remains high, showcasing a strong capital structure. However, the return on equity has turned negative in the TTM, which is concerning and reflects the company's recent profitability challenges.

Cash Flow

The cash flow statement shows mixed results. While operating cash flow remains positive, free cash flow has decreased compared to previous periods. The company has managed to maintain a positive operating cash flow to net income ratio, but the reduction in free cash flow growth rate indicates potential challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	952.92M	977.13M	1.29B	1.43B	1.46B	1.20B
Gross Profit	344.44M	338.15M	541.70M	555.41M	696.40M	539.00M
EBITDA	65.29M	75.92M	301.19M	383.87M	462.91M	326.06M
Net Income	-201.87M	-181.53M	218.88M	109.91M	278.42M	159.57M
Balance Sheet
Total Assets	2.32B	2.29B	2.70B	2.74B	3.17B	2.94B
Cash, Cash Equivalents and Short-Term Investments	926.88M	930.19M	1.18B	1.18B	1.51B	1.39B
Total Debt	16.32M	17.96M	18.26M	16.03M	34.16M	37.97M
Total Liabilities	256.91M	264.79M	283.51M	357.92M	423.32M	341.59M
Stockholders Equity	2.06B	2.02B	2.42B	2.39B	2.75B	2.59B
Cash Flow
Free Cash Flow	111.45M	149.37M	185.50M	102.51M	266.59M	197.64M
Operating Cash Flow	206.75M	247.90M	295.99M	212.65M	389.70M	285.33M
Investing Cash Flow	-89.39M	208.73M	-237.55M	296.95M	-416.28M	-99.57M
Financing Cash Flow	-254.52M	-339.62M	-236.38M	-514.55M	-125.07M	-10.08M

IPG Photonics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPGP, the sentiment is Positive. The current price of 71.05 is above the 20-day moving average (MA) of 68.12, above the 50-day MA of 64.52, and above the 200-day MA of 69.01, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 82.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPGP.

IPG Photonics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLED	79 Outperform	$7.45B	32.60	14.58%	1.17%	6.13%	4.70%
Sector *	69 Neutral	¥229.55B	14.58	7.64%	2.69%	9.13%	8.48%
SLAB	64 Neutral	$4.82B	―	-14.77%	―	2.16%	-55.38%
SMTC	62 Neutral	$3.77B	―	-93.41%	―	13.83%	88.14%
IPGP	58 Neutral	$2.91B	―	-9.17%	―	-20.08%	-218.29%
SITM	57 Neutral	$5.25B	―	-12.78%	―	65.85%	7.92%
POWI	55 Neutral	$3.14B	85.81	5.03%	1.51%	-5.75%	-41.75%

IPG Photonics Corporate Events

IPG Photonics Secures New $200 Million Credit Facility

On June 24, 2025, IPG Photonics Corporation entered into a new credit agreement with Bank of America, replacing its previous loan agreement that expired on June 30, 2025. This agreement establishes a $200 million unsecured revolving credit facility, with provisions for interest rates based on the Term Secured Overnight Financing Rate and the company’s Consolidated Net Leverage Ratio. The facility is intended to support working capital, capital expenditures, and general corporate purposes, with potential for increased commitments under certain conditions. The agreement includes customary default provisions, and the company must maintain a specified leverage ratio.

The most recent analyst rating on (IPGP) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on IPG Photonics stock, see the IPGP Stock Forecast page.

IPG Photonics Holds Annual Meeting, Elects New Board

IPG Photonics held its Annual Meeting on May 20, 2025, where shareholders voted on several key issues. The meeting resulted in the election of ten directors, approval of executive compensation, adoption of the 2025 Incentive Compensation Plan, and ratification of Deloitte & Touche LLP as the independent accounting firm for 2025. Following the meeting, the Board decided to reduce its size from eleven to ten members, effective immediately.

The most recent analyst rating on (IPGP) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on IPG Photonics stock, see the IPGP Stock Forecast page.