IPG PhotonicsFRA:IPF -5.48%79 Altman Z-Score is 11.71 as of Jun. 25, 2026, which is 22% below its 10-year median of 15.10. 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 1,015 Semiconductors companies, IPG Photonics ranks better than 71.72% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 11.57 is strong.
IPG Photonics has a Altman Z-Score of 11.71, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for IPG Photonics's Altman Z-Score or its related term are showing as below:
FRA:IPF'
s Altman Z-Score Range Over the Past 10 Years
Min: 8.64 Med: 15.1 Max: 24.39
Current: 11.57
During the past 13 years, IPG Photonics's highest Altman Z-Score was 24.39. The lowest was 8.64. And the median was 15.10.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
IPG Photonics Altman Z-Score Related Terms
IPG Photonics Altman Z-Score Historical Data
* Premium members only.
The historical data trend for IPG Photonics's Altman Z-Score 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: Altman Z-Score Comparison
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where IPG Photonics's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
IPG Photonics's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.4897
+
1.4
*
1.0929
+
3.3
*
0.0145
+
0.6
*
15.1905
+
1.0
*
0.4273
=
11.71
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
IPG Photonics (FRA:IPF) has a Altman Z-Score of 11.71 as of Jun. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on IPG Photonics and its competitors. This is 22% below median its historical median of 15.10. Over the past decade, IPG Photonics' Altman Z-Score has ranged from 8.64 to 24.39. According to the industry distribution chart, IPG Photonics ranks #287 out of 1015 companies in the Semiconductors industry, placing it in the top 28.3%.
Is IPG Photonics' Altman Z-Score too high?
IPG Photonics' current Altman Z-Score of 11.71 is 22% below median its 10-year median of 15.10. Over the past 10 years, this metric has ranged from a low of 8.64 to a high of 24.39. The Semiconductors industry median Altman Z-Score is 5.52. IPG Photonics' value of 11.71 is 112.1% above this industry median. Based on the distribution chart, IPG Photonics ranks #287 out of 1015 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' Altman Z-Score compare to ACLS and KLIC?
According to the Semiconductors industry distribution chart, IPG Photonics ranks #287 out of 1015 companies for Altman Z-Score. This puts IPG Photonics in the upper half of its industry. The industry median Altman Z-Score is 5.52. IPG Photonics' value of 11.71 is 112.1% above this benchmark. Historically, IPG Photonics' own Altman Z-Score has ranged from 8.64 to 24.39 over the past decade. While the company's 10-year median is 15.10 vs. the industry median of 5.52, 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 Altman Z-Score for a Semiconductors company?
The median Altman Z-Score among Semiconductors companies is 5.52, based on 1,015 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPG Photonics's current Altman Z-Score of 11.71 is 112.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on IPG Photonics and its competitors. For the Semiconductors industry, the median Altman Z-Score is 5.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPG Photonics's current Altman Z-Score is 11.71, which is 22% below median its own 10-year median of 15.10. 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 Altman Z-Score is 11.71, which is 22% below median its 10-year median of 15.10 and 112.1% above the Semiconductors industry median of 5.52. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For IPG Photonics (FRA:IPF), the current Altman Z-Score is 11.71 as of Jun. 25, 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:
Altman Z-Score: 11.71 (22% below median its 10-year median of 15.10)
GF Value™: €74.51 vs. price of €94.50 (26.8% above fair value)
Industry Position: 112.1% above the Semiconductors median (#287 of 1015)
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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