IPG Photonics (IPGP) Hits New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified IPG Photonics as such a stock due to the following factors:
- IPGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.3 million.
- IPGP has traded 34,434 shares today.
- IPGP is trading at a new lifetime high.
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More details on IPGP:
IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications, primarily in materials processing worldwide. IPGP has a PE ratio of 26.2. Currently there are 7 analysts that rate IPG Photonics a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for IPG Photonics has been 387,600 shares per day over the past 30 days. IPG Photonics has a market cap of $5.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.89 and a short float of 21.2% with 21.91 days to cover. Shares are up 32.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates IPG Photonics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 25.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- IPGP's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.45, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, IPG PHOTONICS CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 52.85% and other important driving factors, this stock has surged by 43.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- IPG PHOTONICS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, IPG PHOTONICS CORP increased its bottom line by earning $3.81 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $3.81).
- You can view the full IPG Photonics Ratings Report.
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