Ipg Photonics Corp (NASDAQ: IPGP)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0001111928
Market Cap 3.66 Bn
P/B 1.74
P/E 142.91
P/S 3.80
ROIC (Qtr) 0.68
Div Yield % 0.00
Rev 1y % (Qtr) 7.57
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Short-term investments of 524.36M provide solid 3.03x coverage of other current liabilities 173.16M, indicating strong liquidity.
  • Operating cash flow of 120.32M fully covers other non-current liabilities 62.77M by 1.92x, showing strong long-term stability.
  • Tangible assets of 2.26B provide robust 13.03x coverage of other current liabilities 173.16M, indicating strong asset backing.
  • Operating cash flow of 120.32M provides strong 139.10x coverage of operating expenses 865000, showing operational efficiency.
  • Cash reserves of 346.03M provide robust 1.62x coverage of current liabilities 213.38M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 120.32M barely covers its investment activities of (555.45M), with a coverage ratio of -0.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (555.45M) provide weak support for R&D spending of 114.37M, which is -4.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 346.03M provide limited coverage of acquisition spending of (66.74M), which is -5.18x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 120.32M shows concerning coverage of stock compensation expenses of 40.48M, with a 2.97 ratio indicating potential earnings quality issues.
  • Free cash flow of 36.89M provides weak coverage of capital expenditures of 83.43M, with a 0.44 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.39 3.68
EV to Cash from Ops. EV/CFO 27.47 27.99
EV to Debt EV to Debt 0.00 2,137.46
EV to EBIT EV/EBIT 125.13 47.14
EV to EBITDA EV/EBITDA 35.99 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 89.59 68.49
EV to Market Cap EV to Market Cap 0.90 0.93
EV to Revenue EV/Rev 3.43 55.25
Price to Book Value [P/B] P/B 1.74 11.74
Price to Earnings [P/E] P/E 142.91 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 667.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.52
Interest Coverage Int. cover (Qtr) -0.88 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.12 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -60.85 21.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 105.94 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 174.44 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) 113.67 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) 139.90 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) 116.14 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) -82.34 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.97 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 1.62 1.52
Current Ratio Curr Ratio (Qtr) 6.72 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.30
Interest Cover Ratio Int Coverage (Qtr) -0.88 86.73
Times Interest Earned Times Interest Earned (Qtr) -0.88 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.10 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 2.74 -1,926.38
EBT Margin % EBT Margin % (Qtr) 5.87 -1,932.94
Gross Margin % Gross Margin % (Qtr) 38.70 22.58
Net Profit Margin % Net Margin % (Qtr) 2.70 -2,101.05