IPG Photonics vs TE Connectivity
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KIRA’s take AI analyst
I put IPG Photonics and TE Connectivity side by side, using each one’s latest annual report. Here is what stands out:
- TE Connectivity is the larger business, with $17.3B of revenue in fiscal 2025 against $1.0B for IPG Photonics, about 17 times as much.
- TE Connectivity grew revenue faster (8.9%, against 2.7%).
- TE Connectivity kept more of each dollar of sales as operating profit (18.6% operating margin, against 1.3%).
- TE Connectivity turned more of its sales into free cash flow (18.6% FCF margin, against −0.3%).
- TE Connectivity earned a higher return on the capital invested in it (12.1%, against 0.8%).
- Investors pay more for each dollar of IPG Photonics’s earnings: a P/E of 109.3x against 20.9x for TE Connectivity.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
IPG Photonics
IPGP
4/11
Gross marginPiotroski F-scoreNet debt / EBITDAShare count change
TE Connectivity
TEL
7/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equity
Side by side
Best in the row
| Latest fiscal year | IPGP FY25 | TEL FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.0B | $62.7B |
| Revenue | $1.0B | $17.3B |
| Free cash flow | −$3.5M | $3.2B |
| Net income | $31.1M | $1.8B |
| Growth | ||
| Revenue growth | 2.7% | 8.9% |
| 5-year growth | −3.5% | 7.2% |
| Share count change | −3.8% | −3.2% |
| Profitability | ||
| Gross margin | 38.0% | 35.2% |
| Operating margin | 1.3% | 18.6% |
| Net margin | 3.1% | 10.7% |
| FCF margin | −0.3% | 18.6% |
| Return on capital | 0.8% | 12.1% |
| Return on equity | 1.5% | 14.8% |
| Balance sheet | ||
| Net debt | −$839M | $3.6B |
| Net debt / EBITDA | −10.5x | 0.9x |
| Dividends and buybacks | $53.1M | $2.2B |
| Valuation & quality | ||
| P/E | 109.3x | 20.9x |
| Piotroski F-score | 7 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.