IPG Photonics Corporation Common Stock (IPGP)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach IPG Photonics as a Graham-style bargain hunter and a Buffett-style business appraiser. The company makes fiber lasers and laser systems, and it has a fortress balance sheet: debt-to-equity of 0.01 and an Altman Z-Score of 8.80, both FairStock calculations. Its Piotroski F-Score is 8/9, suggesting recent accounting signals are strong. But the earning power is not there yet. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $278.6M and net income was $5.2M, or diluted EPS $0.12. In fiscal Q2 2025, revenue was $250.7M and net income was $6.6M, or diluted EPS $0.16, so sales rose while profit fell. For fiscal year 2025, ended 2025-12-31, net income was $31.1M on $1.0B revenue, a recovery from fiscal year 2024's $181.5M loss, but far below fiscal year 2023's $218.9M profit. FairStock's return metrics show ROE of 1.30% and ROCE of 0.97%, meaning capital is barely earning a return. On the evidence, I see no strong moat, because a durable competitive advantage should show up in returns on capital, and ROCE is 0.97%. The stock closed at $75.85 on 2026-10-13. FairStock's P/E is 116.69 and EV/EBITDA is 25.98, while its Graham Number is $27.04 and FCF yield is 0.6%. At that price, I see little margin of safety. The Lynch category is TURNAROUND: returned to profit after a loss within the last three years, and turnarounds need proof of durable margin recovery. IPG has the balance sheet to survive, but not yet the profitability to excite a value buyer. I would need evidence that revenues convert into materially higher owner earnings before calling this a bargain.

In plain English: IPG Photonics makes fiber lasers and laser systems used in cutting, welding, medical and advanced applications. The business looks weak right now because it earns very little profit on its sales and assets, even though it has a strong balance sheet. The stock price looks high compared with those small profits and its accounting value, so it does not look cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer