IPG Photonics Corp. (IPGP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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IPG Photonics Corp.

Skyworks Solutions, Inc.

Enphase Energy, Inc.

Why is IPG Photonics Corp. ?

Poor Management Efficiency with a low ROE of 7.01%

The company has been able to generate a Return on Equity (avg) of 7.01% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

The company has declared Positive results for the last 3 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Highest at 2.14 times
NET PROFIT(Q) Highest at USD 15.08 MM
RAW MATERIAL COST(Y) Fallen by 0.31% (YoY)

With ROE of 1.48%, it has a very attractive valuation with a 2.43 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 59.65%, its profits have risen by 120.3% ; the PEG ratio of the company is 1.4

High Institutional Holdings at 80.12%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.55% over the previous quarter.

Market Beating Performance

The stock has generated a return of 59.65% in the last 1 year, much higher than market (S&P 500) returns of 22.24%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to IPG Photonics Corp. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is IPG Photonics Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IPG Photonics Corp.

59.65%

0.37

67.81%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.52%

EBIT Growth (5y)

-36.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

0.49

Tax Ratio

9.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

80.12%

ROCE (avg)

16.34%

ROE (avg)

7.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

164

Industry P/E

Price to Book Value

2.43

EV to EBIT

187.73

EV to EBITDA

48.14

EV to Capital Employed

3.35

EV to Sales

4.31

PEG Ratio

1.36

Dividend Yield

ROCE (Latest)

1.78%

ROE (Latest)

1.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.14 times

NET PROFIT(Q)

Highest at USD 15.08 MM

RAW MATERIAL COST(Y)

Fallen by 0.31% (YoY

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 56.44 MM

DEBT-EQUITY RATIO (HY)

Highest at -37.65 %

CASH AND EQV(HY)

Lowest at USD 1,652.23 MM

EPS(Q)

Lowest at USD 0.04

Here's what is working for IPG Photonics Corp.

Net Profit

Highest at USD 15.08 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

At USD 15.08 MM has Grown at 91.7%

over average net sales of the previous four periods of USD 7.87 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 2.14 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for IPG Photonics Corp.

Operating Cash Flow

Lowest at USD 56.44 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at -37.65 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

EPS

Lowest at USD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 1,652.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at USD 8.79 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income