IPGP (Update)

IPG Photonics Corp

TMT, Industrial/Transportation


Presented:10/15/2015
Price:$77.11
Cap:$4.12B
Current Price:$75.14
Cap:$3.32B

Presented

Date10/15/2015
Price$77.11
Market Cap$4.12B
Ent Value$4.00B
P/E Ratio17.73x
Book Value$22.05
Div Yield0%
Shares O/S53.44M
Ave Daily Vol470,489
Short Int13.27%

Current

Price$75.14
Market Cap$3.32B
IPG Photonics Corp. develops and manufactures a broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used for diverse applications, primarily in materials processing, advanced technologies, telecommunications and medical applications. The company sells its products globally to original equipment manufacturers, system integrators and end users in a wide range of diverse markets that have the in-house engineering capability to integrate its products into their own systems. It designs and manufactures components used in its finished products, from semiconductor diodes to optical fibers and other components, finished fiber lasers and amplifiers. The company also manufactures certain complementary products used with its lasers, including optical delivery cables, fiber couplers, beam switches, optical heads and chillers. IPG Photonics was founded by Valentin P. Gapontsev and Igor Samartsev in 1990 and is headquartered in Oxford, MA.

Please note, this is an update to IPG Photonics Corporation (IPGP) – Short, which was originally presented On June 22, 2015 ($93.31).

Publicly traded companies mentioned herein: Han's Laser Technology Industry Group Co Ltd (002008 CH), IPG Photonics Corporation (IPGP), Lumentum Holdings Inc (LITE), Rofin-Sinar Technologies Inc (RSTI)

Highlights

The presenter remains short shares of IPG Photonics (IPGP) and continues to see the potential for an increase in competition to negatively impact the company’s future performance. In particular, JDSU’s Lumentum and Rofin-Sinar are “finally putting the pressure on,” and the largest aggregator in China - Han’s Laser – is backward integrating and looking to diversify supply. In addition, the fiber laser market is nearly fully penetrated at lower kW levels (1 kW and below) and there is limited room for growth in the >1 kW market.

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Idea Discussion

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