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IPGP, IPG Photonics Corporation

Semiconductors asset-light Cyclical

IPG Photonics Corporation develops, manufactures and sells high-performance fiber lasers, fiber amplifiers, diode lasers and laser-based systems that are used for diverse applications in materials processing, medical and advanced applications.

We sell our products globally to original equipment manufacturers ("OEMs"), system integrators and end users.

We market our products internationally, primarily through our direct sales force.

Latest annual: FY2025 10-K

IPGP · IPG Photonics Corporation

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.0B

+2.7% YoY · −4% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.0B 5-yr avg $1.2B

Gross margin 38% 5-yr avg 40%

Operating margin 0.3% 5-yr avg 7.0%

ROIC 0% 5-yr avg 4%

Owner-earnings margin −1% 5-yr avg 11%

Free cash flow margin −1% 5-yr avg 11%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 45% and operating margin about 18% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −21% and 39% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Inventory runs near 29% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on process leadership and the capex cycle. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 10%). The steadier read is owner earnings: roughly 16% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$1.0B	$1.4B	$1.5B	$1.3B	$1.2B	$1.5B	$1.4B	$1.3B	$977M	$1.0B	$1.0B	RevenueRevenue
55%	57%	55%	46%	45%	48%	39%	42%	35%	38%	38%	Gross marginGross mgn
7%	6%	7%	8%	9%	9%	9%	10%	13%	14%	14%	SG&A / revenueSG&A/rev
8%	7%	8%	10%	11%	10%	8%	8%	11%	12%	12%	R&D / revenueR&D/rev
$364M	$551M	$523M	$234M	$199M	$368M	$170M	$232M	($208M)	$13M	$4M	Operating incomeOp. inc.
36.2%	39.1%	35.9%	17.8%	16.5%	25.2%	11.9%	18.0%	−21.3%	1.3%	0.3%	Operating marginOp. mgn
$261M	$348M	$404M	$180M	$160M	$278M	$110M	$219M	($182M)	$31M	$29M	Net incomeNet inc.
29%	37%	24%	27%	22%	24%	40%	20%	—	31%	19%	Effective tax rateTax rate
											Cash flow & returns
$298M	$405M	$393M	$324M	$285M	$390M	$213M	$296M	$248M	$75M	$56M	Operating cash flowOp. cash
$51M	$65M	$80M	$96M	$95M	$96M	$91M	$70M	$61M	$67M	$67M	DepreciationDeprec.
($36M)	($30M)	($119M)	$14M	($4M)	($23M)	($26M)	($32M)	$331M	($66M)	($82M)	Working capital & otherWC & other
$127M	$127M	$160M	$134M	$88M	$123M	$110M	$110M	$99M	$79M	$70M	CapexCapex
12.6%	9.0%	11.0%	10.2%	7.3%	8.4%	7.7%	8.6%	10.1%	7.9%	6.7%	Capex / revenueCapex/rev
$171M	$279M	$233M	$190M	$198M	$267M	$103M	$186M	$149M	($3M)	($14M)	Owner earningsOwner earn.
17.0%	19.8%	16.0%	14.5%	16.5%	18.2%	7.2%	14.4%	15.3%	−0.3%	−1.3%	Owner earnings marginOE mgn
$171M	$279M	$233M	$190M	$198M	$267M	$103M	$186M	$149M	($3M)	($14M)	Free cash flowFCF
17.0%	19.8%	16.0%	14.5%	16.5%	18.2%	7.2%	14.4%	15.3%	−0.3%	−1.3%	Free cash flow marginFCF mgn
$48M	$60M	$109M	$15M	$429K	$0	$2M	$0	$67M	$0	$0	AcquisitionsAcquis.
$9M	$40M	$176M	$41M	$38M	$135M	$500M	$223M	$344M	$53M	—	BuybacksBuybacks
27%	30%	23%	10%	9%	13%	6%	10%	-12%	1%	0%	ROICROIC
17%	17%	18%	8%	6%	10%	5%	9%	-9%	1%	1%	Return on equityROE
											Balance sheet
$831M	$1.1B	$1.0B	$1.2B	$1.4B	$1.5B	$1.2B	$1.2B	$930M	$839M	$813M	Cash & investmentsCash+inv
$156M	$237M	$256M	$238M	$264M	$262M	$211M	$219M	$171M	$182M	$192M	ReceivablesReceiv.
$239M	$308M	$404M	$381M	$365M	$461M	$509M	$454M	$285M	$313M	$319M	InventoryInvent.
$28M	$35M	$36M	$27M	$26M	$56M	$46M	$29M	$35M	$39M	$55M	Accounts payablePayables
$367M	$510M	$623M	$592M	$604M	$667M	$674M	$644M	$421M	$456M	$457M	Operating working capitalOper. WC
$1.3B	$1.8B	$1.8B	$1.9B	$2.1B	$2.3B	$2.0B	$1.9B	$1.4B	$1.4B	$1.4B	Current assetsCur. assets
$158M	$199M	$246M	$192M	$215M	$313M	$275M	$215M	$205M	$234M	$247M	Current liabilitiesCur. liab.
8.2×	8.8×	7.3×	9.9×	10.0×	7.5×	7.2×	8.9×	7.0×	6.1×	5.8×	Current ratioCurr. ratio
$20M	$56M	$101M	$82M	$41M	$39M	$38M	$39M	$67M	$72M	$71M	GoodwillGoodwill
$1.8B	$2.4B	$2.6B	$2.7B	$2.9B	$3.2B	$2.7B	$2.7B	$2.3B	$2.4B	$2.4B	Total assetsAssets
$41M	$49M	$45M	$42M	$38M	$34M	$16M	$0	—	—	$23M	Total debtDebt
($790M)	($1.1B)	($999M)	($1.1B)	($1.4B)	($1.5B)	($1.2B)	($1.2B)	—	—	($790M)	Net debt / (cash)Net debt
$1.6B	$2.0B	$2.2B	$2.4B	$2.6B	$2.7B	$2.4B	$2.4B	$2.0B	$2.1B	$2.1B	Shareholders’ equityEquity
2.2%	1.6%	1.9%	2.5%	3.0%	2.6%	2.7%	3.1%	3.8%	4.3%	4.1%	Stock comp / revenueSBC/rev
											Per share
53.8M	54.7M	54.7M	53.8M	53.8M	53.9M	50.9M	47.3M	44.3M	42.6M	42.9M	Shares out (diluted)Shares
$18.70	$25.76	$26.68	$24.42	$22.32	$27.09	$28.07	$27.21	$22.04	$23.54	$24.27	Revenue / shareRev/sh
$4.85	$6.36	$7.38	$3.35	$2.97	$5.16	$2.16	$4.63	$-4.09	$0.73	$0.67	EPS (diluted)EPS
$3.17	$5.10	$4.26	$3.53	$3.67	$4.94	$2.01	$3.92	$3.37	$-0.08	$-0.32	Owner earnings / shareOE/sh
$3.17	$5.10	$4.26	$3.53	$3.67	$4.94	$2.01	$3.92	$3.37	$-0.08	$-0.32	Free cash flow / shareFCF/sh
$2.36	$2.31	$2.93	$2.48	$1.63	$2.28	$2.16	$2.33	$2.22	$1.85	$1.64	Cap. spending / shareCapex/sh
$28.95	$36.97	$40.30	$44.61	$48.21	$50.93	$46.84	$51.04	$45.66	$49.90	$49.31	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+2.6%/yr	+1.1%/yr
EPS	−19.0%/yr	−24.5%/yr
Capital spending / share	−2.7%/yr	+2.5%/yr
Book value / share	+6.2%/yr	+0.7%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

43Mpeak FY2018

ROIC

1%low FY2024

Gross margin

38%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($3M)owner earningsvs.$31Mnet incomelow FY2025

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $31M of profit but ($3M) of owner earnings: $35M less than the profit line, taken out by capital spending and the timing of cash.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$31M	($182M)	$219M	$110M	$278M
Depreciation & amortizationnon-cash charge added back	+$67M	+$61M	+$70M	+$91M	+$96M
Stock-based compensationreal costnon-cash, but a real cost	+$43M	+$37M	+$40M	+$38M	+$38M
Working capital & othertiming of cash in and out, other non-cash items	−$66M	+$331M	−$32M	−$26M	−$23M
Cash from operations	$75M	$248M	$296M	$213M	$390M
Capital expenditurecash put back in to keep running and to grow	−$79M	−$99M	−$110M	−$110M	−$123M
Owner earnings	($3M)	$149M	$186M	$103M	$267M
Owner-earnings marginowner earnings ÷ revenue	0%	15%	14%	7%	18%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $43M), owner earnings is nearer ($46M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 19.2×

Comfortable

Operating income $13M ÷ interest expense $681K

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$816M

Net cash

Cash $404M + ST investments $436M − debt $24M

What this means
Cash and short-term investments exceed every dollar of debt by $816M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 227d

Long (60+ days)

DSO 66 + DIO 184 − DPO 23 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 10%

Solid through the cycle

10-yr median, range -12%–30%; 1% latest = NOPAT $9M ÷ invested capital $1.7B

Industry peers: median 9%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 1% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 15%

High through the cycle

10-yr median margin, range -0%–20%; latest ($3M) = operating cash $75M − maintenance capex $79M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -0% of revenue this year, a 15% median across 10 years. Treating stock comp as the real expense it is (less $43M of SBC) leaves ($46M).
Are earnings backed by cash? 2.42×

Cash-backed

Cash from ops $75M ÷ net income $31M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 1.18×

Maintaining

Capex $79M ÷ depreciation $67M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.0B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 6.08×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $24M vs $1.2B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −93%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.54/share (latest year $0.73), the averaged base the calculator's gate runs on, and book value is $50.14/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 8 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 37% → −1% (3-yr avg ends)

In the filing’s words The words explain the slip: the filing names price competition rather than pricing actions of its own — a business that looks to take its price, not set it.

What this means
Through the cycle the operating margin slipped — about 37% early to −1% lately, median 18% — competition or costs are biting in.
Reinvestment, incremental ROIC −53%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Owner earnings growth −12%/yr

What this means
Owner earnings shrank about 12% a year over the record.
Worst year 2024 · −21.3% op. margin

What this means
Operations went underwater in 2024, understand why before trusting the good years.
Share count −2.5%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.4B

Cash & short-term investments$813M
Receivables$192M
Inventory$319M
Other current assets$109M

Current liabilities$247M

Accounts payable$55M
Other current liabilities$192M

Current ratio5.80×all current assets ÷ what's due · Graham looked for 2×

Quick ratio4.51×stricter: inventory excluded

Cash ratio3.29×strictest: cash alone against what's due

Working capital$1.2Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+16.6%the freshest read on whether the business is still growing

Current ratio, recent quarters9.0× → 5.8×

Deeper floors

Tangible book value$2.0Bequity stripped of goodwill & intangibles

Net current asset value$1.1BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$32M$16M of it operating leases

Deferred revenue$71Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $2.9B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$1.2B · 40%
Buybacks$1.6B · 53%
Retained (debt / cash)$212M · 7%

Returned to owners$1.6B
88% of the owner earnings the business produced over the span, $0 as dividends and $1.6B as buybacks.
Average price paid for buybacks$105.04
Across the years where the filing reports a share count, 15M shares were bought for $1.6B, about $105.04 each. Year to year the price paid ranged from $70.52 (2025) to $181.31 (2021); its heaviest year, 2022, paid $97.91 ($500M).
Net change in share count−20.2%
The diluted count fell from 54M to 43M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained−47%
Of the earnings it kept rather than paid out ($251M over the span), annual owner earnings (first three years vs last three) fell $117M, so each retained $1 gave back about 0.47 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$7.3M	$1.6M	$267M
2021	$3.3M	$3.3M	$267M
2022	$6.6M	$1.2M	$103M
2023	$5.7M	$4.9M	$186M
2024	$6.7M	$4.6M	$149M
2024	$6.1M	$408k	$149M
2025	$9.1M	$9.9M	($3M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership37.5%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio162:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$43M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 328% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why IPG Photonics Corporation is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

3 of the 6 tests turned up something to look into; the other 3 came back clean.

Look hereIs it less profitable than it was?9.8% vs 17.6%
The owner-earnings margin averaged 17.6% early in the record and 9.8% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid receivables and inventory outpace sales?39% → 49% of sales
Receivables and inventory grew from $395M to $511M while revenue grew 4%: working capital is climbing faster than sales (39% of revenue then, 49% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?5 of 10 years
Management took an impairment or write-down in 5 of the last 10 years, $191M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Semiconductors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
VIAVViavi Solutions Inc.	$1.1B	58%	5.6%	5%	8%
SYNASynaptics	$1.1B	43%	4.1%	8%	12%
SMTCSemtech Corporation	$1.0B	60%	11.8%	9%	16%
IPGPIPG Photonics Corporation	$1.0B	46%	17.9%	10%	16%
MTSIMACOM Technology Solutions Holdings Inc.	$967M	52%	11.7%	4%	20%
ICHRIchor Holdings	$948M	15%	5.2%	11%	4%
ALGMAllegro MicroSystems	$890M	55%	8.1%	13%	14%
ALABAstera Labs Inc.	$853M	75%	-27.4%	14%	11%
Group median	—	54%	6.9%	9%	13%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what IPG Photonics Corporation has delivered.

IPG Photonics Corporation’s latest year shows negative owner earnings, a cyclical trough. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, IPG Photonics Corporation earns about $157M on its 15.6% median owner-earnings margin. This year’s −0.3% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($157M) Net of stock comp (−$42M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−21%/yr

Owner-earnings growth · ’16→’25−12%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings ($14M) on 42M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $790M. The base opens on the through-cycle figure (the latest year sits off the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh IPGP against another business →

The owners of IPGP: the meeting and the votes →

Cite: Owner Scorecard, "IPG Photonics Corporation (IPGP), the owner's record," https://ownerscorecard.com/c/IPGP, data as of 2026-07-09.

Manual order: ← IPG its page in the Manual IPI →

Industry order: ← INTC the Semiconductors chapter JKS →