Is the business good?
How good a business is IPGP?
IPG Photonics Corporation earns 0.21% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
0.21%
Return on invested capital · cost of capital 9.0% · 8.8 points below what the capital costs: growth destroys value
- Operating margin
- 0.34%
Operating margin · Semiconductor Equipment & Materials median 8.4% · 12 months to Q1 2026
- Cash conversion
- −0.48×
Cash conversion · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.19%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 25% |
| FY2022 | 12% |
| FY2023 | 18% |
| FY2024 | −21% |
| FY2025 | 1.3% |
Details›
- Gross margin12 months to Q1 2026
- 38%
- Operating margin12 months to Q1 2026
- 0.34%
- Net margin12 months to Q1 2026
- 2.8%
- Free cash flow margin
- −1.3%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $1.04B
- Free cash flow, trailing twelve months
- −$14M
- Net income, trailing twelve months
- $29M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.21%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductor Equipment & Materials
Ranks #20 of 22 by Smart Score