IPG PhotonicsFRA:IPF -5.48%79 Gross Margin % is 37.48% as of Mar. 2026, which is 18% below its 10-year median of 45.50. 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 1,011 Semiconductors companies, IPG Photonics ranks better than 64.49% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
IPG Photonics had a gross margin of 37.48% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
IPG Photonics Gross Margin % Related Terms
IPG Photonics Gross Margin % Historical Data
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The historical data trend for IPG Photonics's Gross Margin % 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: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where IPG Photonics's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
IPG Photonics (FRA:IPF) has a Gross Margin % of 37.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on IPG Photonics and its competitors. This is 18% below median its historical median of 45.50. Over the past decade, IPG Photonics' Gross Margin % has ranged from 34.61 to 56.56. According to the industry distribution chart, IPG Photonics ranks #359 out of 1011 companies in the Semiconductors industry, placing it in the top 35.5%.
Is IPG Photonics' Gross Margin % too high?
IPG Photonics' current Gross Margin % of 37.48% is 18% below median its 10-year median of 45.50. Over the past 10 years, this metric has ranged from a low of 34.61 to a high of 56.56. The Semiconductors industry median Gross Margin % is 29.61. IPG Photonics' value of 37.48% is 26.6% above this industry median. Based on the distribution chart, IPG Photonics ranks #359 out of 1011 companies in the Semiconductors industry, which is above the industry midpoint. 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' Gross Margin % compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #359 out of 1011 companies for Gross Margin %. This puts IPG Photonics in the upper half of its industry. The industry median Gross Margin % is 29.61. IPG Photonics' value of 37.48% is 26.6% above this benchmark. Historically, IPG Photonics' own Gross Margin % has ranged from 34.61 to 56.56 over the past decade. While the company's 10-year median is 45.50 vs. the industry median of 29.61, 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 Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current Gross Margin % of 37.48% is 26.6% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current Gross Margin % is 37.48%, which is 18% below median its own 10-year median of 45.50. 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 Gross Margin % is 37.48%, which is 18% below median its 10-year median of 45.50 and 26.6% above the Semiconductors industry median of 29.61. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For IPG Photonics (FRA:IPF), the current Gross Margin % is 37.48% 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:
Gross Margin %: 37.48% (18% below median its 10-year median of 45.50)
GF Value™: €74.51 vs. price of €94.50 (26.8% above fair value)
Industry Position: 26.6% above the Semiconductors median (#359 of 1011)
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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