IPGPIPG Photonics Corporation
Is the business good?
The checks split: nothing decisive, though margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IPGP?
IPG Photonics Corporation earns 0.50% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 8.5 points below what the capital costs: growth destroys value
- Operating margin
- 0.75%
Operating margin · Semiconductor Equipment & Materials median 11% · 12 months to Q2 2026
- Share count, year on year
- +0.79%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 12%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 25% |
| FY2022 | 12% |
| FY2023 | 18% |
| FY2024 | −21% |
| FY2025 | 1.3% |
Details›
- Gross margin12 months to Q2 2026
- 38%
- Operating margin12 months to Q2 2026
- 0.75%
- Net margin12 months to Q2 2026
- 2.6%
- Free cash flow margin
- 1.9%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $1.07B
- Free cash flow, trailing twelve months
- $21M
- Net income, trailing twelve months
- $28M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.50%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Semiconductor Equipment & Materials
Ranks #9 of 18 by RyuScore