IPG Photonics Corporation

IPGP

Semiconductors · Technology

Also trades as: 0J86.L

Price

$86.75

+0.95 (+1.11%)

Market Cap

$3.68B

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 12, 2026 · filings through Jun 30, 2026

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)

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.

Winston Score History

Growth Profile

For growth stock investors

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

35.3%ownership

→ Flat

Insider ownership roughly steady over the past year

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

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Quality

Gross Margin

40.4%

Healthy — 40.4% gross margin

Operating Margin

1.6%

Thin — 1.6% operating margin

ROCE

0.2%

Weak — 0.2% 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 YoY

+13.0%

Fast-growing sales (+13.0% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

350%

Turns 350% of profit into real cash

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

Debt / Equity

N/A

Data not available

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

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

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Valuation

P/E Ratio (TTM)

131.4x

Expensive — P/E 131.4

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

P/E vs Forward

+83.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (131.4 → 48.2)

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Dividends

Not applicable for this business.

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