IPG PhotonicsFRA:IPF -5.48%79 Current Ratio is 5.80 as of Mar. 2026, which is 32% below its 10-year median of 8.59. GuruFocus rates FRA:IPF with a GF Score™ of 79/100 and a GF Value™ of €74.51 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,029 Semiconductors companies, IPG Photonics ranks better than 83.19% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. IPG Photonics's current ratio for the quarter that ended in Mar. 2026 was 5.80.
IPG Photonics has a current ratio of 5.80. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for IPG Photonics's Current Ratio or its related term are showing as below:
FRA:IPF'
s Current Ratio Range Over the Past 10 Years
Min: 5.8 Med: 8.59 Max: 10.25
Current: 5.8
During the past 13 years, IPG Photonics's highest Current Ratio was 10.25. The lowest was 5.80. And the median was 8.59.
FRA:IPF's Current Ratio is ranked better than 83.19% of 1029
companies
in the Semiconductors industry
Industry Median: 2.49
vs FRA:IPF: 5.80
IPG Photonics (FRA:IPF) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
IPG Photonics Current Ratio Related Terms
IPG Photonics Current Ratio Historical Data
* Premium members only.
The historical data trend for IPG Photonics's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:IPF vs ACLS, KLIC, UCTT: Current Ratio Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
IPG Photonics Current Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's Current Ratio distribution charts can be found below:
* The bar in red indicates where IPG Photonics's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
IPG Photonics (FRA:IPF) has a Current Ratio of 5.80 as of Mar. 2026. This is 32% below median its historical median of 8.59. Over the past decade, IPG Photonics' Current Ratio has ranged from 5.80 to 10.25. According to the industry distribution chart, IPG Photonics ranks #173 out of 1029 companies in the Semiconductors industry, placing it in the top 16.8%.
Is IPG Photonics' Current Ratio too high?
IPG Photonics' current Current Ratio of 5.80 is 32% below median its 10-year median of 8.59. Over the past 10 years, this metric has ranged from a low of 5.80 to a high of 10.25. The Semiconductors industry median Current Ratio is 2.49. IPG Photonics' value of 5.80 is 132.9% above this industry median. Based on the distribution chart, IPG Photonics ranks #173 out of 1029 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, IPG Photonics has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IPG Photonics' Current Ratio compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #173 out of 1029 companies for Current Ratio. This places IPG Photonics in the top 17% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.49. IPG Photonics' value of 5.80 is 132.9% above this benchmark. Historically, IPG Photonics' own Current Ratio has ranged from 5.80 to 10.25 over the past decade. While the company's 10-year median is 8.59 vs. the industry median of 2.49, IPG Photonics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Semiconductors company?
The median Current Ratio among Semiconductors companies is 2.49, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current Current Ratio of 5.80 is 132.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Current Ratio is 2.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current Current Ratio is 5.80, which is 32% below median its own 10-year median of 8.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPG Photonics stock overvalued right now?
Based on GuruFocus' analysis, IPG Photonics (FRA:IPF) is currently considered Modestly Overvalued. The stock's GF Value™ is €74.51, compared to a current price of €94.50 — trading 26.8% above its estimated fair value. The current Current Ratio is 5.80, which is 32% below median its 10-year median of 8.59 and 132.9% above the Semiconductors industry median of 2.49. IPG Photonics' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For IPG Photonics (FRA:IPF), the current Current Ratio is 5.80 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is IPG Photonics (FRA:IPF) Overvalued in 2026?
Based on GuruFocus' analysis, IPG Photonics stock appears to be overvalued.
The current stock price of €94.50 is trading 26.8% above its estimated GF Value™ of €74.51.
GuruFocus considers IPG Photonics to be Modestly Overvalued.
Key valuation signals for FRA:IPF:
Current Ratio: 5.80 (32% below median its 10-year median of 8.59)
GF Value™: €74.51 vs. price of €94.50 (26.8% above fair value)
Industry Position: 132.9% above the Semiconductors median (#173 of 1029)
No single metric tells the full story. See the FRA:IPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPG Photonics Corp is a vertically integrated developer and manufacturer of high-performance fiber lasers, laser and non-laser systems, fiber amplifiers, diode lasers, and related optical components. Its products are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. The company sells its products globally to original equipment manufacturers (OEMs), system integrators, and end users. Additionally, it manufactures complementary products used with its lasers, including optical delivery cables, fiber couplers, beam switches, optical processing heads, in-line sensors, and chillers. Geographically, the company generates maximum revenue from North America, followed by China, Japan, Germany, and other markets.
79GF Score
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