IPG PhotonicsIPGP -2.59%79 3-Year ROIIC % is -334.17 as of Dec. 2025. GuruFocus rates IPGP with a GF Score™ of 79/100 and a GF Value™ of $85.09 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 996 Semiconductors companies, IPG Photonics ranks worse than 97.19% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
IPG Photonics's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -334.17%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for IPG Photonics's 3-Year ROIIC % or its related term are showing as below:
IPGP's 3-Year ROIIC % is ranked worse than 97.19% of 996
companies
in the Semiconductors industry
Industry Median: -0.155
vs IPGP: -334.17
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
IPG Photonics 3-Year ROIIC % Related Terms
IPG Photonics 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for IPG Photonics's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where IPG Photonics's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
IPG Photonics (IPGP) has a 3-Year ROIIC % of -334.17 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on IPG Photonics and its competitors. According to the industry distribution chart, IPG Photonics ranks #968 out of 996 companies in the Semiconductors industry, placing it in the top 97.2%.
Is IPG Photonics' 3-Year ROIIC % too high?
IPG Photonics' current 3-Year ROIIC % is -334.17. Based on the distribution chart, IPG Photonics ranks #968 out of 996 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. 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' 3-Year ROIIC % compare to AXTI and VECO?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #968 out of 996 companies for 3-Year ROIIC %. This places IPG Photonics in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on IPG Photonics and its competitors. IPG Photonics's current 3-Year ROIIC % is -334.17. 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 $85.09, compared to a current price of $114.41 — trading 34.5% above its estimated fair value. The current 3-Year ROIIC % is -334.17. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For IPG Photonics (IPGP), the current 3-Year ROIIC % is -334.17 as of Dec. 2025. 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 $85.09.
GuruFocus considers IPG Photonics to be Significantly Overvalued.
Key valuation signals for IPGP:
3-Year ROIIC %: -334.17
GF Value™: $85.09 vs. price of $114.41 (34.5% above fair value)
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
Get the complete analysis for IPGP
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
IPGP has been successfully added to your 
