IPG PhotonicsFRA:IPF -5.48%79 Return-on-Tangible-Equity is 0.32% as of Mar. 2026, which is 96% below its 10-year median of 8.93. 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 987 Semiconductors companies, IPG Photonics ranks worse than 61.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. IPG Photonics's annualized net income for the quarter that ended in Mar. 2026 was €5.5 Mil. IPG Photonics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,720.8 Mil. Therefore, IPG Photonics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.32%.
The historical rank and industry rank for IPG Photonics's Return-on-Tangible-Equity or its related term are showing as below:
FRA:IPF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.54 Med: 8.93 Max: 20.55
Current: 1.46
During the past 13 years, IPG Photonics's highest Return-on-Tangible-Equity was 20.55%. The lowest was -8.54%. And the median was 8.93%.
FRA:IPF's Return-on-Tangible-Equity is ranked worse than 61.8% of 987
companies
in the Semiconductors industry
Industry Median: 5.19
vs FRA:IPF: 1.46
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
IPG Photonics Return-on-Tangible-Equity Related Terms
IPG Photonics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for IPG Photonics's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where IPG Photonics's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.32% mean?
IPG Photonics (FRA:IPF) has a Return-on-Tangible-Equity of 0.32% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on IPG Photonics and its competitors. This is 96% below median its historical median of 8.93. According to the industry distribution chart, IPG Photonics ranks #610 out of 987 companies in the Semiconductors industry, placing it in the top 61.8%.
Is IPG Photonics' Return-on-Tangible-Equity too high?
IPG Photonics' current Return-on-Tangible-Equity of 0.32% is 96% below median its 10-year median of 8.93. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. IPG Photonics' value of 0.32% is 93.8% below this industry median. Based on the distribution chart, IPG Photonics ranks #610 out of 987 companies in the Semiconductors industry, which is below 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' Return-on-Tangible-Equity compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #610 out of 987 companies for Return-on-Tangible-Equity. This places IPG Photonics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.19. IPG Photonics' value of 0.32% is 93.8% below this benchmark. While the company's 10-year median is 8.93 vs. the industry median of 5.19, IPG Photonics has consistently been below 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 Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 987 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current Return-on-Tangible-Equity of 0.32% is 93.8% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current Return-on-Tangible-Equity is 0.32%, which is 96% below median its own 10-year median of 8.93. 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 Return-on-Tangible-Equity is 0.32%, which is 96% below median its 10-year median of 8.93 and 93.8% below the Semiconductors industry median of 5.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For IPG Photonics (FRA:IPF), the current Return-on-Tangible-Equity is 0.32% 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:
Return-on-Tangible-Equity: 0.32% (96% below median its 10-year median of 8.93)
GF Value™: €74.51 vs. price of €94.50 (26.8% above fair value)
Industry Position: 93.8% below the Semiconductors median (#610 of 987)
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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