IPG PhotonicsIPGP -2.59%79 ROC (Joel Greenblatt) % is 2.22% as of Mar. 2026, which is 91% below its 10-year median of 23.49. GuruFocus rates IPGP with a GF Score™ of 79/100 and a GF Value™ of $85.07 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,025 Semiconductors companies, IPG Photonics ranks worse than 61.95% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. IPG Photonics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.22%.
The historical rank and industry rank for IPG Photonics's ROC (Joel Greenblatt) % or its related term are showing as below:
IPGP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.43 Med: 23.49 Max: 70.81
Current: 2.49
During the past 13 years, IPG Photonics's highest ROC (Joel Greenblatt) % was 70.81%. The lowest was 1.43%. And the median was 23.49%.
IPGP's ROC (Joel Greenblatt) % is ranked worse than 61.95% of 1025
companies
in the Semiconductors industry
Industry Median: 8.19
vs IPGP: 2.49
IPG Photonics's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -43.10% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
IPG Photonics ROC (Joel Greenblatt) % Related Terms
IPG Photonics ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for IPG Photonics's ROC (Joel Greenblatt) % 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.
IPGP vs AXTI, VECO, ACLS: ROC (Joel Greenblatt) % Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where IPG Photonics's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 2.22% mean?
IPG Photonics (IPGP) has a ROC (Joel Greenblatt) % of 2.22% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on IPG Photonics and its competitors. This is 91% below median its historical median of 23.49. Over the past decade, IPG Photonics' ROC (Joel Greenblatt) % has ranged from 1.43 to 70.81. According to the industry distribution chart, IPG Photonics ranks #635 out of 1025 companies in the Semiconductors industry, placing it in the top 62%.
Is IPG Photonics' ROC (Joel Greenblatt) % too high?
IPG Photonics' current ROC (Joel Greenblatt) % of 2.22% is 91% below median its 10-year median of 23.49. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 70.81. The Semiconductors industry median ROC (Joel Greenblatt) % is 8.19. IPG Photonics' value of 2.22% is 72.9% below this industry median. Based on the distribution chart, IPG Photonics ranks #635 out of 1025 companies in the Semiconductors industry, which is below the industry midpoint. Overall, IPG Photonics has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IPG Photonics' ROC (Joel Greenblatt) % compare to AXTI and VECO?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #635 out of 1025 companies for ROC (Joel Greenblatt) %. This places IPG Photonics in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 8.19. IPG Photonics' value of 2.22% is 72.9% below this benchmark. Historically, IPG Photonics' own ROC (Joel Greenblatt) % has ranged from 1.43 to 70.81 over the past decade. While the company's 10-year median is 23.49 vs. the industry median of 8.19, 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 ROC (Joel Greenblatt) % for a Semiconductors company?
The median ROC (Joel Greenblatt) % among Semiconductors companies is 8.19, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current ROC (Joel Greenblatt) % of 2.22% is 72.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median ROC (Joel Greenblatt) % is 8.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current ROC (Joel Greenblatt) % is 2.22%, which is 91% below median its own 10-year median of 23.49. 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 (IPGP) is currently considered Significantly Overvalued. The stock's GF Value™ is $85.07, compared to a current price of $114.41 — trading 34.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 2.22%, which is 91% below median its 10-year median of 23.49 and 72.9% below the Semiconductors industry median of 8.19. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For IPG Photonics (IPGP), the current ROC (Joel Greenblatt) % is 2.22% 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 (IPGP) Overvalued in 2026?
Based on GuruFocus' analysis, IPG Photonics stock appears to be overvalued.
The current stock price of $114.41 is trading 34.5% above its estimated GF Value™ of $85.07.
GuruFocus considers IPG Photonics to be Significantly Overvalued.
Key valuation signals for IPGP:
ROC (Joel Greenblatt) %: 2.22% (91% below median its 10-year median of 23.49)
GF Value™: $85.07 vs. price of $114.41 (34.5% above fair value)
Industry Position: 72.9% below the Semiconductors median (#635 of 1025)
No single metric tells the full story. See the IPGP 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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