IPG Photonics (IPGP) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 337.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -20.08%
• EPS Growth: -218.29%
• Country: US
• Employees: 4,740
• Sector: Technology
• Sector Strength: 76
• Industry: Semiconductors
• EPS (TTM): 0.09
• Shares Outstanding: 42,534,660
• 10 Day Avg. Volume: 322,226
• 30 Day Avg. Volume: 337,126
• PEG Ratio: 0.75
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $68.25
• Price Target Upside: 4.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: $64.00 ▼( -2.22% Downside)

IPG Photonics is navigating through a challenging period with significant financial struggles, particularly in profitability. However, the company benefits from a solid balance sheet and promising growth in emerging product segments. Technical analysis indicates a positive momentum, although valuation concerns remain due to the lack of profitability and dividend yield. The mixed guidance from the earnings call highlights both opportunities in new markets and pressures from traditional segments and tariffs.

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.

Regional Performance

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

Revenue Growth

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

Negative Factors

Industrial Demand

Cutting revenue continued to decline due to softer industrial demand and increased competition but saw some strength in certain geographies.

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

IPGP shares fell 13% on the back of a weak Q2 guidance, a function of tariff-related impacts.

IPG Photonics Business Overview & Revenue Model

Company Description

IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks; and ytterbium and thulium specialty fiber amplifiers and broadband light sources. In addition, the company offers integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems; and optical transceiver and transponder modules for interconnecting electronic equipment, including Ethernet switches, IP routers and DWDM/SONET/SDH optical transport modules within telecommunications, cable multi-system operators, and data center networking applications. It's lasers and amplifiers are also used in materials processing, communications, and medical and advanced applications. The company 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. IPG Photonics Corporation was founded in 1990 and is headquartered in Oxford, Massachusetts.

How the Company Makes Money

IPG Photonics generates revenue by designing, producing, and selling a broad range of high-performance fiber lasers and amplifiers. Their primary revenue streams include the sale of fiber laser products for industrial applications such as cutting, welding, and marking, which constitute a significant portion of their income. The company also earns from providing complementary products and services, including laser systems, beam delivery products, and replacement parts. Moreover, IPG Photonics engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, contributing to its earnings by tapping into new markets and customer segments.

IPG Photonics Financial Statement Overview

Summary

IPG Photonics faces challenges with declining revenues and profitability, reflected in negative margins. However, the company maintains a robust balance sheet with no debt, enhancing its financial stability. Cash flow management remains an area for improvement to support future growth and operational efficiency.

Income Statement

IPG Photonics has experienced declining revenue and profitability. The revenue growth rate has been negative, indicating a downward trajectory in sales. The company also reported negative EBIT and EBITDA, leading to a significant net loss in the most recent year, reflecting operational challenges and reduced profitability margins.

Balance Sheet

The company's balance sheet is strong, with no total debt, resulting in a debt-to-equity ratio of zero. IPG Photonics maintains a high equity ratio, demonstrating financial stability. However, the decline in stockholders' equity over the years is a concern that needs to be monitored.

Cash Flow

IPG Photonics shows a stable cash flow position, with a positive operating cash flow. However, the decrease in free cash flow over the years and the current challenges in converting net income into cash flows indicate potential inefficiencies in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
977.13M	1.29B	1.43B	1.46B	1.20B
	Gross Profit
338.15M	541.70M	555.41M	696.40M	539.00M
	EBIT
-208.25M	231.57M	293.31M	367.88M	198.66M
	EBITDA
75.92M	301.19M	383.87M	462.91M	326.06M
	Net Income Common Stockholders
-181.53M	218.88M	109.91M	278.42M	159.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
930.19M	1.18B	1.18B	1.51B	1.39B
	Total Assets
2.29B	2.70B	2.74B	3.17B	2.94B
	Total Debt
17.96M	18.26M	16.03M	34.16M	37.97M
	Net Debt
-602.08M	-496.41M	-682.18M	-674.95M	-838.26M
	Total Liabilities
264.79M	283.51M	357.92M	423.32M	341.59M
	Stockholders Equity
2.02B	2.42B	2.39B	2.75B	2.59B
Cash Flow		Free Cash Flow
149.37M	185.50M	102.51M	266.59M	197.64M
	Operating Cash Flow
247.90M	295.99M	212.65M	389.70M	285.33M
	Investing Cash Flow
208.73M	-237.55M	296.95M	-416.28M	-99.57M
	Financing Cash Flow
-339.62M	-236.38M	-514.55M	-125.07M	-10.08M

IPG Photonics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 65.45 is above the 20-day moving average (MA) of 61.98, above the 50-day MA of 60.28, and below the 200-day MA of 68.95, indicating a neutral trend. The MACD of 2.08 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.36 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	73 Outperform	$7.18B	31.42	14.58%	1.09%	6.13%	4.70%
SLAB	66 Neutral	$4.19B	―	-14.77%	―	2.16%	-55.38%
IPGP	62 Neutral	$2.83B	―	-9.17%	―	-20.08%	-218.29%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
SITM	58 Neutral	$4.90B	―	-12.78%	―	65.85%	7.92%
POWI	55 Neutral	$2.97B	81.31	5.03%	1.55%	-5.75%	-41.75%
SMTC	49 Neutral	$3.41B	―	-137.83%	―	4.66%	84.78%

IPG Photonics Corporate Events

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.