Is IPG PHOTONICS CORP (IPGP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.3% / 30% | 16.5% / 30% | 3.6% / 30% | 0.78% / 5% | ✓ HALAL |
| DJIM | 0.3% / 33% | 16.5% / 33% | 3.6% / 33% | 0.78% / 5% | ✓ HALAL |
| MSCI | 0.7% / 33% | 34.6% / 33% | 7.5% / 33% | 0.78% / 5% | ✗ NOT HALAL |
| S&P | 0.3% / 33% | 16.5% / 33% | 3.6% / 33% | 0.78% / 5% | ✓ HALAL |
| FTSE | 0.7% / 33% | 34.6% / 33% | 7.5% / 50% | 0.78% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 38.0% | |
| Operating Margin | 2.1% | |
| Net Margin | 3.1% | |
| Return on Equity (ROE) | 1.5% | |
| Return on Assets (ROA) | 0.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $75M |
| Free Cash Flow | -$3M |
| Total Debt | $17M |
| Debt-to-Equity | 0.8 |
| Current Ratio | 6.1 |
| Total Assets | $2.4B |
Price & Trading
| Last Close | $118.70 |
| 50-Day MA | $114.23 |
| 200-Day MA | $87.52 |
| Avg Volume | 544K |
| Beta | 1.0 |
|
52-Week Range
$48.59
| |
About IPG PHOTONICS CORP (IPGP)
IPG Photonics Corporation develops, manufactures, and sells fiber lasers, fiber amplifiers, diode lasers, and laser-based systems used in materials processing, medical, and advanced applications. The company offers laser products, including hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; and high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers, as well as other versions. It also provides complementary products, such as optical fiber delivery cables, fiber couplers, beam switches, optical processing heads, process measuring and monitoring technologies, and in-line sensors and chillers. In addition, the company offers LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems; high precision laser systems for medical technology industry; multi axis Cartesian systems for fine welding, cutting, and drilling applications; laser and non-laser robotic welding and automation solutions; and related accessories for specific medical applications. The company sells and markets its products to original equipment manufacturers, system integrators, and end users through direct sales force, as well as through agreements with independent sales representatives and distributors. It serves general manufacturing, automotive, consumer goods, medical devices, energy/renewable energy, micro electronics, original equipment manufacturers instrument manufacturing, scientific, as well as aerospace and defense, rail, and shipbuilding markets. IPG Photonics Corporation was founded in 1990 and is headquartered in Marlborough, Massachusetts.
Purification Calculator
As a halal stock with 0.78% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is IPG PHOTONICS CORP (IPGP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), IPG PHOTONICS CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is IPG PHOTONICS CORP's debt ratio?
IPG PHOTONICS CORP's debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 0.7%.
Does IPG PHOTONICS CORP require dividend purification?
Yes, IPG PHOTONICS CORP has an impermissible income ratio of 0.78%, which means 0.78% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are IPG PHOTONICS CORP's key financial metrics?
IPG PHOTONICS CORP has a market capitalization of $4.9B, trailing P/E ratio of 158.5, and revenue of $1.0B. The company maintains a gross margin of 38.0% and a net margin of 3.1%. Return on equity stands at 1.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.