So I've been looking at the financials of various different 3D printing companies since I am looking to invest in atleast one of them for the long-term as I feel like current market valulations are giving some good opportunities and the 3D printing industry is still one growing relatively fast, expected to grow with a 20,6% CAGR from a total of 13,8 billion USD in 2021, according to a report by Grandviewresearch. So I took a bunch of companies that are either 3D printer manufacturers or are involved in the 3D printing industry in another way. (for example XOMETRY offers an industrial market place that allows customers to connect their 3D design to manufacturers)
Underneath are each of the tickers with some basic financial information I scraped from each of the Q1 earnings report for the individual companies.
| Ticker | MCAP (millions) | SP($) | Q1 Rev (millions) | Net profit(millions) | Assets (millions) | Liabilities (millions) | Total stockholder equity (millions) | Gross Margins (%) | Price /book ratio |
|---|---|---|---|---|---|---|---|---|---|
| SSYS | 1270 | 19,06 | 163,4 | (19,6) | 1,256 | 313,6 | 942,7 | 42,6 | 1,34 |
| XMTR | 1668 | 35,83 | 83,7 | (20,0) | 761,3 | 351,1 | 410,1 | 39,3 | 4,06 |
| DDD | 1312 | 10,11 | 133,0 | (26,8) | 1506 | 679,7 | 826,9 | 40,5 | 1,59 |
| NN%DM | 799 | 3,10 | 10,4 | (33,3) | 1387 | 66,4 | 1320,5 | 37,0 | 0,61 |
| DM | 768 | 2,45 | 43,7 | (69,9) | 1322 | 144 | 1178 | (2,9) | 0,65 |
| MKFG | 429 | 2,29 | 21,8 | (21,1) | 329,6 | 75,3 | 254,4 | 53,1 | 1,69 |
| VLDR | 272 | 1,31 | 6,2 | (49.1) | 332,8 | 73,2 | 259,6 | (150) | 1,05 |
From what I gathered it leaves SSYS, XMTR, DDD, NN%DM & MKFG as what I consider the “investable options” based on financials. Desktop metal is accelerating their losses at the moment and gross margins are negative. I also don't know what the hell velolidar is doing as their cost of revenue was literally 2,5x their actual revenue last quarter and they are burning cash like crazy. Other than that I found that Xometry is actually delivering the highest YOY and sequential growth in revenue which is probably why it is trading at the highest premium from each of these companies (they are also a company that could be considered “divergent” from the rest of the companies listed here). MKFG also has a lot of actual cash on hand (rather than asset value in equipment and property) and relatively high gross margins from their revenue, however both SSYS and DDD will have an easier time decreasing net loss as revenues are much higher as well. It is also worth noting that most of these companies have relatively high R&D expenses as well.
I'm going to delve deeper in the financials & business aspects of each of these companies but for now I wanted to atleast post this to get some people's thought on the industry and if you have any additional suggestions on stuff I can look into to broaden my knowledge.
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