IPG Photonics Corporation


SKU: IPGP-1 Category:


IPG Photonics delivered a mixed result in the last quarter, as it failed to meet Wall Street expectations in terms of revenues but managed an earnings beat. The management observed continued upward momentum in its emerging growth items along with strong outcomes in welding, cleaning, solar cell production, and 3D printing applications. These were partially countered by negative currency exchange rates, deteriorating European economic conditions, and COVID-related lockdowns in China. Sales in high-power cutting applications suffered from a decline in general industrial demand in China and Europe. Simultaneously, they observed modest growth in North America with e-mobility sales continuing to rise due to additional investments in electric battery capacity across all countries. Besides, the revenue for lasers used in cleaning applications increased, providing sustainability benefits by lowering the use of abrasives and chemicals. As this business required extra investment and was noncore to IPG, the management announced they would sell it to Lumentum. IPG also expanded its production line for e-mobility applications with new QCW AMB lasers. Additionally, its medical division experienced another record quarter. Their revenue is also further diversified through LightWELD and medicinal sales. We give the company a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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