Stock fact sheet · data as of
IPG Photonics Corporation (IPGP): fair value, margin of safety and Wheel Score
Ticker symbol IPGP · Technology · Semiconductors · United States · Blend
Is IPGP undervalued?
At 70.11 (close of 5 Nov 2026), IPGP trades 164% over the GLS average fair value of 26.55, with 0 of 8 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 8 models disagree widely: GLS Growth gives 2.78 while Graham Growth gives 54.29. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for IPGP, so the nightly engine files it under Blend (value score 35, growth score 25, out of 100).
Nine valuation models for IPGP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 40.02 | -43% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 32.89 | -53% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 54.29 | -23% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.73 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.78 | -96% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 32.39 | -54% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 15.78 | -77% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 10.55 | -85% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 26.50 | -62% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 135.50 | +93% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - IPGP passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.0 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 1.4%, ROE 1.5%, ROA 1.3% - with debt at 0.01 times equity and a free-cash-flow yield of 1.2%.
IPG Photonics Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Industrial Solutions 80%, Systems 20% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 26 Aug 2026.
| Piotroski F-score | 6 / 9 | ROIC | 1.4% |
|---|---|---|---|
| GLS Moat | 5.0 / 10 | ROE | 1.5% |
| Debt / equity | 0.01 | ROA | 1.3% |
| Free-cash-flow yield | 1.2% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 34: Weak
IPGP scores 34 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (899 open interest, 228 a day); and filter 3, below fair value - trades 164% above our fair value, and the parts are thin too - value weak, premium strong, moat fair, health good, red flags good, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is thin - 899 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 468k shares a day on a market cap of $3.0B, with a beta of 0.97; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (899 open interest, 228 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 164% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 164% above fair value | |
| Premium | Strong | implied volatility 61% | |
| Moat | Fair | moat 5.0/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Weak | 228 contracts a day, 899 open interest | |
| Stability | Fair | beta 0.97, $3.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for IPGP in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to IPG Photonics Corporation by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ACMR ACM Research, Inc. | 44.43 | 54.41 | +18% | 31Weak | $2.9B |
| AXTI AXT, Inc. | 47.54 | 12.08 | -293% | 23Weak | $3.1B |
| ACLS Axcelis Technologies, Inc. | 92.14 | 62.62 | -47% | 28Weak | $2.8B |
| AMBA Ambarella, Inc. | 60.92 | 7.60 | -702% | 24Weak | $2.7B |
| POWI Power Integrations, Inc. | 46.80 | 20.64 | -127% | 35Weak | $2.6B |
| KLIC Kulicke and Soffa Industries, Inc. | 68.44 | 21.71 | -215% | 33Weak | $3.6B |
| PENG Penguin Solutions, Inc. | 48.35 | 81.39 | +41% | 37Weak | $2.5B |
| NVTS Navitas Semiconductor Corp | 9.33 | - | - | 20Weak | $2.4B |
| DIOD Diodes Incorporated | 79.46 | 48.35 | -64% | 33Weak | $3.7B |
| OUST Ouster, Inc. | 33.54 | - | - | 20Weak | $2.4B |
| VECO Veeco Instruments Inc. | 36.00 | 17.03 | -111% | 25Weak | $2.2B |
| NLST Netlist, Inc. | 5.99 | 0.0304 | -19591% | 14No options | $2.2B |
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Start free See the Sunday ScanQuestions about IPGP
Is IPGP undervalued right now?
No: at 70.11 the stock trades 164% above the GLS average fair value of 26.55 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of IPGP and what does it mean?
IPGP scores 34 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for IPGP?
26.55 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does IPG Photonics Corporation report earnings next?
No upcoming earnings date is recorded for IPGP in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does IPGP have listed options, and how liquid are they?
Yes. The nightly snapshot found 72 listed contracts with 899 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.