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IPG Photonics Corporation

IPGP
49
Semiconductors · Technology
Also trades as: 0J86.L GBP 0.72 (+4.35%)
Price
$69.41
-4.62 (-6.24%)
Market Cap
$2.95B
Exchange
NASDAQ
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 23, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
9/30
Growth
Mixed
6/20
Cash Flow
Strong
7/10
Stability
Exceptional
10/10
Valuation
Good
5/10
Ownership
Good
10/15
Dividends
Not counted
n/a

47 of 95 counted points = Winston Score 49. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−20.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 53.9M (2021) → 42.6M (2025)

§Winston Score History

The full picture

IPG Photonics makes high-powered fiber lasers and amplifiers used in industrial manufacturing. Its products cut, weld, and mark metal and other materials for customers in the automotive, aerospace, electronics, and medical device industries. IPG is one of the world's largest manufacturers of fiber lasers and pioneered the technology that made high-power fiber lasers commercially practical.

The company sells its laser systems and components directly to manufacturers, generating revenue through hardware sales. IPG operates globally, with significant business in China, Europe, and North America, and reported roughly $1 billion in annual revenue in recent fiscal periods. Its main competitive advantage is deep vertical integration — it makes most of its own components in-house, which historically kept costs low and quality high. The biggest risk IPG faces is slowing industrial demand, particularly in China, which has been a major market, combined with growing competition from Chinese laser manufacturers offering lower-priced alternatives.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-25.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$117M/ year

↑ Rising (+7% vs prior year)

11.7% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

39.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$904M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

IPG Photonics Corporation is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
40.4%
Healthy — 40.4% gross margin
Profit after running costs
Operating Margin
1.6%
Thin — 1.6% operating margin
Return on the money invested
ROCE
0.4%
Weak — 0.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+13.0%
Fast-growing sales (+13.0% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
350%
Turns 350% of profit into real cash
Spare cash per sale
FCF Margin
1.9%
Thin free cash flow (1.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.01
Conservative — low debt load (0.01)
Covers its interest
Interest Cover
100.00x
—
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
105.2x
Expensive — P/E 105.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+74.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (105.2 → 30.3)

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Dividends

Not applicable for this business.
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