IPG Photonics Corp (NASDAQ:IPGP)

Dang, I own this stock in real life and forgot to add it to CAPS 'til now. Fortunately it's not too late to jump on board.

This is a company I have owned in real life and will likely own again. IPG is the market leader in fiber lasers, which are most definitely a disruptive technology to the more conventional lasers. Forward p/e is only 22 which is a great deal, I think, compared to the 5 yr annual growth estimate of 30%.

They are exposed fairly equally to European, American, and Asian markets so that should protect them from any serious downturn in a particular region. Profit margins are at 21% which means this company is obviously doing something right. Last but not least, the CEO/founder owns a very large stake in the company still. This company is a gem.

Exciting technology with multiple uses. Currently available at a discount!

Fiber lasers have been an unexpected success story in recent years and IPGP is the dominant player in this growing technology. Rapid technical progress has increased demand for IPG Photonics' fiber lasers and the company is building out capacity. Margins are improving rapidly and the company produces its own semiconductor technology, giving it a cost advantage. This is a potentially disruptive technology in the LASER space. Buy now for outsized returns.

flitt reject

This is a niche company with few competitors and is building its sales staff in the orient as well as Europe. Lots of room for growth and will consistently outperform analysts earnings expectations

Looking at this stock and what it does in a niche market. Seems like a good pick

leader in its class

Disruptive technology. Great execution. Classic rulebreaker.

good for defense applications. lasers the near future in computing & more so in solar power applications

Could take a while, but this one will pay off with their fiber laser technology.

Fiber Lasers are a disruptive technology. IPGP has about 70% marketshare in FL (the next closest competitor has about 5%) and a technological lead of 1.5 to 2 years over its nearest competitor. This company could also be bought out at a good premium by a larger company such as JDSU or Rofin Star at some point down the road.

Leading laser technology with application in medical, military and industrial fields.

IPG Photonics is the leading developer and manufacturer of high-performance fiber lasers and amplifiers for diverse applications in numerous markets. The company’s diverse lines of low, mid and high-power lasers and amplifiers are used in materials processing, communications, medical and advanced applications. The company also makes direct diode laser systems and communications systems that utilize its optical fiber-based products. It offers a range of standard and custom fiber lasers and amplifiers that operate between one and two microns.

The company reported a 49% increase in the revenues and around 400% increase in the net income in 2006 as compared to 2005. IPG holds a solid 70% share in fiber lasers market and is expected to grow at a CAGR of 9% through 2010. The company manufactures most of the components used in its fiber lasers, which improves performance and significantly reduces the cost. Due to this enormous entry barrier are created for the competitors ensuring the company’s dominance in the market.

The company is continuously expanding and refining its product portfolio to include new power levels, wavelengths, and beam types as well as to develop new product categories. The company is also working on increasing diode pumplaser output powers, chip yields, as well as improving the performance of other components and packaging technology. Moreover the fiber lasers are expected to replace traditional machine tools due to their longer lifetimes, high reliability, and high Precision with lower prices giving the company an upper edge as a market leader.

IPG is expected to grow at multiples of its industry’s growth rate for the next several years due to its substantial operating leverage which creates a virtuous circle of driving cost lower, which enables it to be price competitive while expanding margins in turn resulting in higher share prices.

Disruptive technology.

Over enthusiastic IPO valuation.

Taking a bit of a flyer on a company that is quite expensive versus its peers...BUT: IPG has a pure focus in fiber lasers--low-maintenance, low-energy lasers with better beam definition and more tunable wavelength than standard CO2 or crystal lasers. This is a relatively new and potentially disruptive area in lasers, offering improvements in medical devices, materials, communications...lots of stuff. Also, IPG is vertically integrated, making every component of its lasers, so it can work with clients to meet exact specs. Most other mfrs (Rofin-Sinar, Coherent/Lockheed Martin, Newport) seem to have limited offerings in fiber/diode lasers.

Did I mention growth? Revenues up 80% in 2004, 60% in 2005, looking strong this year...Net margins rapidly improving. Still a lot of capex cutting into FCF, but operating cash flow is decent. ROIC not as good (yet) as some competitors, but I like where they are going...

Future of lasers - market leader with CEO who built the company.

Management looks great for a tech company, though (on paper) it looks like it could use some more business savvy.

Go RPI