IPG Photonics Corporation Common Stock (IPGP)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 13.0 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 17.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($29) with negative 330% margin of safety—limited downside protection

AI Analysis

IPG Photonics Corporation Common Stock is a small-cap technology company valued at $5.3 billion. The business generates $1.0 billion in annual revenue with a 1.3% net margin. From a quality standpoint, IPG shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 13.0 confirms fortress-level solvency. On valuation, the stock is commanding a steep 167.0x multiple, with trades far above its Graham Number ($29) with no margin of safety. Growth dynamics show revenue growing at 17.1% and profit growth of 69.8%. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

IPG's 17% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 167x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer