IPG PhotonicsIPGP -2.27%79 ROE % is 0.30% as of Mar. 2026, which is 96% below its 10-year median of 8.47. GuruFocus rates IPGP with a GF Score™ of 79/100 and a GF Value™ of $84.97 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,004 Semiconductors companies, IPG Photonics ranks worse than 60.46% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. IPG Photonics's annualized net income for the quarter that ended in Mar. 2026 was $6 Mil. IPG Photonics's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,122 Mil. Therefore, IPG Photonics's annualized ROE % for the quarter that ended in Mar. 2026 was 0.30%.
The historical rank and industry rank for IPG Photonics's ROE % or its related term are showing as below:
IPGP'
s ROE % Range Over the Past 10 Years
Min: -8.18 Med: 8.47 Max: 19.42
Current: 1.38
During the past 13 years, IPG Photonics's highest ROE % was 19.42%. The lowest was -8.18%. And the median was 8.47%.
IPGP's ROE % is ranked worse than 60.46% of 1004
companies
in the Semiconductors industry
Industry Median: 4.55
vs IPGP: 1.38
IPG Photonics (NAS:IPGP) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
IPG Photonics ROE % Related Terms
IPG Photonics ROE % Historical Data
* Premium members only.
The historical data trend for IPG Photonics's ROE % 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.
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's ROE % distribution charts can be found below:
* The bar in red indicates where IPG Photonics's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
IPG Photonics (IPGP) has a ROE % of 0.30% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on IPG Photonics and its competitors. This is 96% below median its historical median of 8.47. According to the industry distribution chart, IPG Photonics ranks #607 out of 1004 companies in the Semiconductors industry, placing it in the top 60.5%.
Is IPG Photonics' ROE % too high?
IPG Photonics' current ROE % of 0.30% is 96% below median its 10-year median of 8.47. The Semiconductors industry median ROE % is 4.55. IPG Photonics' value of 0.30% is 93.4% below this industry median. Based on the distribution chart, IPG Photonics ranks #607 out of 1004 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' ROE % compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #607 out of 1004 companies for ROE %. This places IPG Photonics in the lower half of its industry. The industry median ROE % is 4.55. IPG Photonics' value of 0.30% is 93.4% below this benchmark. While the company's 10-year median is 8.47 vs. the industry median of 4.55, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current ROE % of 0.30% is 93.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current ROE % is 0.30%, which is 96% below median its own 10-year median of 8.47. 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 Modestly Overvalued. The stock's GF Value™ is $84.97, compared to a current price of $107.72 — trading 26.8% above its estimated fair value. The current ROE % is 0.30%, which is 96% below median its 10-year median of 8.47 and 93.4% below the Semiconductors industry median of 4.55. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For IPG Photonics (IPGP), the current ROE % is 0.30% 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 $107.72 is trading 26.8% above its estimated GF Value™ of $84.97.
GuruFocus considers IPG Photonics to be Modestly Overvalued.
Key valuation signals for IPGP:
ROE %: 0.30% (96% below median its 10-year median of 8.47)
GF Value™: $84.97 vs. price of $107.72 (26.8% above fair value)
Industry Position: 93.4% below the Semiconductors median (#607 of 1004)
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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