| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 113.8x | 17.3x | Bottom tier | |
Growth | 45 | 13.0% | 7.1% | Around median | |
Quality | 36 | -0.2% | 4.5% | Bottom tier | |
Safety | 81 | — | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.06% | Around median | |
Momentum | 23 | -10.2% | -1.6% | Bottom tier | |
Sentiment | 71 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
86% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
IPG Photonics Corporation sells laser systems and photonic solutions used in welding, cutting, cleaning, and additive manufacturing, alongside medical, semiconductor, and defense applications. It is expanding its revenue sources from laser sales to subsystems that combine lasers, beam delivery, and process monitoring, while its medical business includes urology systems and the fibers used with them. Its advantage in battery manufacturing relies on integrating Adjustable Mode Beam lasers with beam delivery and measurement, and in semiconductors on lithography, measurement, and inspection solutions.
In quarter 2 of fiscal year 2026, ended 2026-06-30, revenue reached 278.6 million dollars, representing year-over-year growth of 11.1%, with net income of 5.2 million dollars and diluted earnings per share of 0.12 dollars. Gross margin reached 40.4%, up 3.1 percentage points year over year, while operating margin reached 1.6%, up 1.6 percentage points. Operating cash flow totaled 37.8 million dollars, but the decline in net income compared with 6.6 million dollars in quarter 2 of fiscal year 2025 shows that sales growth and improved gross margin did not translate into a corresponding increase in bottom-line earnings.
In quarter 2 of fiscal year 2026, ended 2026-06-30, industrial solutions revenue grew 16% year over year, supported by welding, cleaning, and additive manufacturing, while advanced solutions revenue declined 9% year over year despite improving 10% compared with the previous quarter. Emerging growth products accounted for 58% of revenue versus 53% in quarter 1 of fiscal year 2026, while the medical business represented approximately 7% to 8% of the business. Cash and investments totaled 871.3 million dollars versus total debt of 16.3 million dollars, providing the company with resources to fund product development and medical expansion.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-11-03
Quarter 3 of fiscal year 2026 revenue within a range of 265 million dollars to 295 million dollars
Adjusted gross margin for quarter 3 of fiscal year 2026 within a range of 37.5% to 40.5%
The indicative value based on analyst targets is 136 dollars, within a range of 120 dollars to 151 dollars and with low confidence, pricing in expected growth, while the industry-multiple value is 65 dollars, within a range of 42 dollars to 101 dollars, based on next year's earnings and a median multiple of 32.4 across 70 companies. The discounted cash flow model estimates value at 41 dollars, within a range of 35 dollars to 51 dollars and at a discount rate of 9.7%, to measure the cash the company generates, while the no-growth value is 10 dollars when after-tax operating profit is held constant forever at the same discount rate. The industry-multiple and cash flow ranges overlap between 42 dollars and 51 dollars, but analyst targets are higher than both, a difference that reflects the weight of expected growth versus pricing in line with peer companies and cash generated, while the no-growth value shows the limited support provided by current operating profit alone. Analyst targets tend to be optimistic by nature, and the cash flow model tends to be conservative by nature; Needham raised its target to 120 dollars from 110 dollars on 2026-07-17.
Figures in the text are as of 2026-10-09; the live price is shown at the top of the page.
IPG sells battery welding solutions that combine Adjustable Mode Beam lasers, beam delivery, and process monitoring, alongside foil cutting and cleaning applications. In the 2026-08-04 presentation, management linked growth in demand for high-capacity batteries to stationary storage for data centers and grid stability, alongside long-range electric vehicles. Industrial solutions revenue grew 16% year over year in quarter 2 of fiscal year 2026, ended 2026-06-30, with the company winning business at two major global automakers.
Gross margin reached 40.4% and operating margin reached 1.6% in quarter 2 of fiscal year 2026, ended 2026-06-30, with year-over-year increases of 3.1 percentage points and 1.6 percentage points, respectively. However, net income totaled 5.2 million dollars versus 6.6 million dollars in quarter 2 of fiscal year 2025, so the improvement in margins was not accompanied by an increase in net earnings. Gross margin also benefited from a tariff refund of approximately 4.7 million dollars, while manufacturing cost absorption remained below management's target level. The company expects adjusted gross margin between 37.5% and 40.5% for quarter 3 of fiscal year 2026, with a tariff impact of approximately 150 basis points.
Automated analysis for informational purposes only — not investment advice.
Adjusted diluted earnings per share for quarter 3 of fiscal year 2026 within a range of 0.30 dollars to 0.60 dollars
IPG entered into a binding offer to acquire Lumibird Medical on 2026-07-16 and expects to complete it in quarter 4 of fiscal year 2026. The proposed expansion combines Lumibird Medical's eye diagnosis and treatment systems with IPG's urology systems and fibers, increasing the addressable medical market by approximately 1 billion dollars. Management expects the added business to support gross margin and adjusted earnings during the first year after completion, while the existing medical business represented approximately 7% to 8% of IPG's business in quarter 2 of fiscal year 2026, ended 2026-06-30. This expected contribution remains dependent on completing the transaction and achieving its operating results.
IPG began shipping the Lockheed Martin order for the CROSSBOW system in quarter 2 of fiscal year 2026, ended 2026-06-30, and expected to ship additional units in quarter 3 of fiscal year 2026. The system targets threats from class 1 and 2 drones, and on 2026-08-04 management described tests that included extreme heat, rain, and sandstorms at White Sands Missile Range. However, defense revenue declined year over year within advanced solutions, whose revenue fell 9% in quarter 2 of fiscal year 2026. The start of shipments therefore represents specific commercial progress, while a broader contribution depends on converting interest from other customers into orders.
Cash and investments totaled 871.3 million dollars versus total debt of 16.3 million dollars in quarter 2 of fiscal year 2026, ended 2026-06-30. Over the last 12 months through 2026-06-30, operating cash flow totaled 96.4 million dollars, equivalent to 350% of net income of 27.6 million dollars, but free cash flow totaled 20.8 million dollars. The company expects capital expenditures between 90 million dollars and 100 million dollars in fiscal year 2026, including investment in the fiber plant in Germany. These financial balances give the company funding flexibility, while cash remaining after investment is still substantially lower than cash generated from operations.