IPG Photonics Corporation logo IPGP - IPG Photonics Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 16
HOLD 10
SELL 1
STRONG
SELL
0
| PRICE TARGET: $135.50 DETAILS
HIGH: $151.00
LOW: $120.00
MEDIAN: $135.50
CONSENSUS: $135.50
UPSIDE: 84.96%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 57.0 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
F 23.6
  • 5yr Avg ROIC 4.8% 34/100
  • Operating Margin Trend -8.09 pp/yr 0/100
Contributes 3.5 pts toward composite.

Capital Efficiency

Weight: 15%
C 51.7
  • 5yr Avg ROE 3.3% 26/100
  • 5yr Share-Count CAGR -4.5% 99/100
Contributes 7.8 pts toward composite.

Growth Quality

Weight: 10%
F 13.8
  • 5yr Revenue CAGR -3.5% 13/100
  • 5yr EPS CAGR -24.5% 0/100
  • Revenue-Growth Years (5) 2/5 40/100
Contributes 1.4 pts toward composite.

Cash Generation

Weight: 15%
B- 67.7
  • 5yr FCF Margin 11.0% 72/100
  • 5yr FCF/NI Conversion 0.66x 62/100
Contributes 10.2 pts toward composite.

Balance Sheet

Weight: 25%
A+ 100.0
  • Net Debt / EBITDA -7.34x 100/100
  • Interest Coverage (EBIT/Int) 30.00x 100/100
  • Altman Z-Score 8.89 100/100
Contributes 25.0 pts toward composite.

Stability

Weight: 20%
C- 45.5
  • EPS Volatility (σ/μ) 0.47 34/100
  • Negative-Revenue Years (5) 3/5 40/100
  • Piotroski F-Score 6 67/100
Contributes 9.1 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Dumping

1 of 2 gurus held; 1 trimmed; 3 full exits.

Holders
1 -1
Avg Δ position
-14.5%
New buys
0
Full exits
3
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (20%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.