New Lifetime High Today: IPG Photonics (IPGP)
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 or Stephanie Link.
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 $36.8 million.
- IPGP has traded 34,708 shares today.
- IPGP is trading at a new lifetime high.
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More details on IPGP:
IPG Photonics Corporation develops and manufactures fiber lasers, fiber amplifiers, and diode lasers that are used in various applications, primarily in materials processing. IPGP has a PE ratio of 23.1. 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 470,200 shares per day over the past 30 days. IPG Photonics has a market cap of $4.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.49 and a short float of 22.1% with 17.05 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Thursday.
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, increase in stock price during the past year, impressive record of earnings per share growth and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 16.0%. 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 0.01 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 4.88, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- IPG PHOTONICS CORP has improved earnings per share by 29.6% 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 $2.98 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($3.69 versus $2.98).
- The gross profit margin for IPG PHOTONICS CORP is rather high; currently it is at 59.31%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.64% significantly outperformed against the industry average.
- You can view the full IPG Photonics Ratings Report.
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