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IPG Photonics IPGP

IPG Photonics scores average on business quality (4.6 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$78.27Oct 9, 2026
Business qualityAverage
Next earningsNov 3, 2026
Insiders, 90 daysBuying

Why it matters

  1. What IPG Photonics does

    IPG Photonics manufactures high-power fiber lasers and amplifiers used by industrial customers for materials processing, welding, and cutting. The company is leaning into specialized laser applications to stabilize revenue after sharp historical declines from peaks above $1.4 billion.

  2. What it does best

    IPG holds a clean debt-free balance sheet with $839 million in cash and zero total debt, creating an impenetrable financial shield against cyclical downturns. Unlike peers burdened with leverage, its cash buffer absorbs multi-year revenue contractions without risking operations.

  3. The main risk

    Revenue growth sits in the bottom quartile at a 16th sector percentile, crippled by sluggish demand in industrial markets. If volume fails to recover from the $1.1 billion baseline, fixed manufacturing costs will keep operating margins pinned near 3.9%.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margins sit thin at 3.9% and free cash flow margin rests in the 7th sector percentile. Scale fails to drive efficiency as high overhead eats away at gross profits.

MoatWeak

Proprietary fiber laser technology secures its position, but a 20th percentile gross margin shows weak pricing power. Rivals easily chip away at market share given sluggish adoption.

GrowthSlow

Revenue grew 2.8% to $1.1B, showing a faint pulse after tumbling from $1.4B in 2022. The top line remains depressed compared to historical annual output.

Financial healthStrong

Zero debt and $839 million in cash give the balance sheet absolute armor. Free cash flow landed at $20M, rebounding from a negative prior year. The financial foundation is exceptionally strong.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 insider bought $199K on the open market.

Our sealed record on IPGP

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is IPGP a good business?

IPG Photonics scores average on the Cluenex quality check (4.6 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health strong.

Are insiders buying IPGP?

In the last 90 days of SEC Form 4 filings: 1 insider bought $199K on the open market.

When does IPGP report earnings?

Nov 3, 2026.

For members

See IPGP today

  • Today's verdict on IPGP, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “IPG Photonics (IPGP)”, https://cluenex.com/stocks/ipgp/, data as of Oct 10, 2026.