IPGP - Embedded Expectations Analysis - 2020 03 31
ï€ IPG Photonics Corporation (IPGP:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 26.1x Uniform P/E. Even at these levels, the market is pricing in expectations for declining Uniform ROA, and management appears concerned about macro headwinds, price competition, and revenue expectationsï€ Specifically, management may be concerned about price competition in China and continued revenue declines from lower pricing, as well as potential weakness in operating income and margins. In addition, they may lack confidence in the economy's ability to stabilize and in their ability to capture the growing auto battery market and sustain above-guidance revenue. Moreover, they may have concerns about weaker demand in Europe, Turkey, and the rest of the world due to the coronavirus. Finally, they may be downplaying concerns about slowdown in growth of the systems business
IPG Photonics is a developer and manufacturer of a line of fiber lasers, fiber amplifiers and diode lasers that are used in various applications, primarily in materials processing. The company designs and manufactures a range of optical fiber-based lasers and amplifiers. The company also makes packaged diodes, direct diode lasers, laser systems and communications components and systems. A majority of the company's products are designed to be used as general-purpose energy or light sources.
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