IPG Photonics vs TE Connectivity
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The short version
- 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 20.4x for TE Connectivity.
| Latest fiscal year | IPGP · FY25 | TEL · FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.0B | $61.0B |
| 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 | 20.4x |
| Piotroski F-score | 7 | 6 |
Revenue
FY16
IPGP $1.0B
TEL $11.4B
FY17
IPGP $1.4B
TEL $12.2B
FY18
IPGP $1.5B
TEL $14.0B
FY19
IPGP $1.3B
TEL $13.4B
FY20
IPGP $1.2B
TEL $12.2B
FY21
IPGP $1.5B
TEL $14.9B
FY22
IPGP $1.4B
TEL $16.3B
FY23
IPGP $1.3B
TEL $16.0B
FY24
IPGP $977M
TEL $15.8B
FY25
IPGP $1.0B
TEL $17.3B
IPGP
TEL
Operating margin
FY16
IPGP 36.2%
TEL 15.9%
FY17
IPGP 39.1%
TEL 15.4%
FY18
IPGP 35.9%
TEL 16.7%
FY19
IPGP 17.8%
TEL 14.7%
FY20
IPGP 16.5%
TEL 4.4%
FY21
IPGP 25.2%
TEL 16.3%
FY22
IPGP 11.9%
TEL 16.9%
FY23
IPGP 18.0%
TEL 14.4%
FY24
IPGP −21.3%
TEL 17.7%
FY25
IPGP 1.3%
TEL 18.6%
IPGP
TEL
Free cash flow
FY16
IPGP $171M
TEL $1.3B
FY17
IPGP $279M
TEL $1.6B
FY18
IPGP $233M
TEL $1.5B
FY19
IPGP $190M
TEL $1.7B
FY20
IPGP $198M
TEL $1.4B
FY21
IPGP $267M
TEL $2.0B
FY22
IPGP $103M
TEL $1.7B
FY23
IPGP $186M
TEL $2.4B
FY24
IPGP $149M
TEL $2.8B
FY25
IPGP −$3.5M
TEL $3.2B
IPGP
TEL
Return on capital
FY16
IPGP 38.1%
TEL 16.4%
FY17
IPGP 40.3%
TEL 13.6%
FY18
IPGP 36.6%
TEL 17.4%
FY19
IPGP 13.8%
TEL 14.6%
FY20
IPGP 12.4%
TEL 2.2%
FY21
IPGP 22.2%
TEL 18.5%
FY22
IPGP 8.2%
TEL 18.8%
FY23
IPGP 15.0%
TEL 14.6%
FY24
IPGP −14.1%
TEL 20.1%
FY25
IPGP 0.8%
TEL 12.1%
IPGP
TEL
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.