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3D Systems Corp (DDD)
:DDD
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3D Systems
(NYSE:DDD)50Neutral
Positive Factors
Financial Strategy
Proceeds from the sale will provide further support to the company's balance sheet, which includes a significant amount of cash and cash equivalents.
Healthcare Business Growth
On a positive note, the healthcare business returned to y/y growth in Q3 marking the first quarter in two years driven by strength in materials, dental, and personalized healthcare.
Negative Factors
Industrial Printer Demand
3D Systems’ Q3 results were below expectations, driven by continued softness in industrial printer demand which forced a downward revision to guidance.
Revenue Guidance
3D Systems lowered 2024 guidance with revenue now expected to decline 7% y/y vs. prior guidance of flat y/y growth.
3D Systems (DDD) vs. S&P 500 (SPY)
Market Cap
$420.42M
Dividend YieldN/A
Average Volume (3M)3.05M
Price to Earnings (P/E)―
Beta (1Y)2.50
Revenue Growth-12.26%
EPS Growth-431.20%
CountryUS
Employees1,925
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-3.93
Shares Outstanding135,620,160
10 Day Avg. Volume2,253,994
30 Day Avg. Volume3,050,222
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.95
Price to Cash Flow (P/CF)-131.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.88Price Target Upside57.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
3D Systems Business Overview & Revenue Model
Company Description3D Systems (DDD) is a pioneering company in the field of additive manufacturing, widely known for its innovative 3D printing solutions. The company operates across various sectors including aerospace, automotive, healthcare, and industrial solutions, providing a comprehensive suite of 3D printing technologies and services. Its core offerings include 3D printers, print materials, on-demand parts services, and digital design tools, catering to both industrial and consumer markets.
How the Company Makes Money3D Systems makes money primarily through the sale of its 3D printing hardware, including a range of 3D printers that cater to different industry needs. Additionally, the company generates revenue from the sale of consumables, such as printing materials and software required for operating their machines. Another significant revenue stream comes from on-demand manufacturing services, where clients pay for custom 3D printed parts. Furthermore, 3D Systems has strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to its earnings. Its focus on providing end-to-end solutions, from design to manufacturing, helps to drive recurring revenue through service contracts and software subscriptions.
3D Systems Financial Statement Overview
Summary
3D Systems faces significant financial challenges, including declining revenues, negative profitability margins, and cash flow difficulties. Despite improved leverage, persistent losses and reduced equity pose risks. Operational inefficiencies need addressing to stabilize finances.Income Statement
3D Systems has experienced a declining trend in revenue over the years, with a significant drop in the TTM period. The gross profit margin decreased from 44.2% in 2019 to 39.5% in TTM, highlighting decreasing efficiency in cost management. The net profit margin is negative, with a substantial loss in the TTM period. The EBIT and EBITDA margins are also negative, indicating operational challenges and a lack of profitability.28
Negative
Balance Sheet
The company's debt-to-equity ratio improved to 0.28 in TTM from higher values in previous years, showing reduced leverage. However, stockholders' equity has significantly decreased, impacting the equity ratio, which stands at 33.1% in TTM. The return on equity is negative due to persistent losses, presenting a risk to stakeholders.42
Neutral
Cash Flow
The operating cash flow has been negative in recent periods, indicating challenges in generating cash from core operations. The free cash flow is also negative, and its growth rate is unfavorable, demonstrating cash management issues. The operating cash flow to net income ratio is not meaningful due to negative values, suggesting operational inefficiencies.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 443.94M | 488.07M | 538.03M | 615.64M | 557.24M | 629.09M | Gross Profit |
| 175.55M | 196.42M | 214.23M | 263.78M | 223.38M | 278.04M | EBIT |
| -283.46M | -406.00M | -117.02M | -33.07M | -70.66M | -57.10M | EBITDA |
| -496.23M | -313.69M | -75.06M | 356.59M | -94.81M | -6.53M | Net Income Common Stockholders |
| -524.16M | -362.69M | -122.95M | 322.05M | -149.59M | -69.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 212.16M | 331.52M | 568.74M | 789.66M | 75.01M | 133.66M | Total Assets |
| 857.24M | 990.66M | 1.45B | 1.55B | 733.05M | 807.31M | Total Debt |
| 288.45M | 399.30M | 501.24M | 502.62M | 79.27M | 92.69M | Net Debt |
| 76.30M | 67.78M | 113.10M | -287.03M | 4.26M | -40.97M | Total Liabilities |
| 446.90M | 561.90M | 695.82M | 706.72M | 302.33M | 293.42M | Stockholders Equity |
| 408.37M | 426.75M | 749.94M | 842.38M | 430.72M | 522.16M |
| Cash Flow | Free Cash Flow | ||||
| -62.90M | -107.88M | -90.89M | 29.36M | -33.76M | 7.60M | Operating Cash Flow |
| -45.91M | -80.69M | -68.39M | 48.15M | -20.12M | 31.58M | Investing Cash Flow |
| -19.06M | 124.78M | -309.89M | 260.56M | -24.23M | -26.87M | Financing Cash Flow |
| -192.00M | -106.47M | -13.81M | 405.80M | -6.98M | 18.70M |
3D Systems Technical Analysis
Negative
3.10
Price Trends
3.68
Negative
3.44
Negative
3.27
Negative
Market Momentum
-0.18
Positive
33.93
Neutral
8.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDD, the sentiment is Negative. The current price of 3.1 is below the 20-day moving average (MA) of 4.05, below the 50-day MA of 3.68, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 8.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DDD.
3D Systems Risk Analysis
3D Systems disclosed 20 risk factors in its most recent earnings report. 3D Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
3D Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $297.11M | 20.81 | 5.60% | ― | 6.71% | 243.36% | |
59 Neutral | $477.94M | ― | -9.36% | ― | ― | ― | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $747.37M | ― | -10.88% | ― | -8.26% | 17.82% | |
50 Neutral | $420.42M | ― | -113.84% | ― | -12.26% | -431.20% | |
38 Underperform | $68.35M | ― | -152.96% | ― | -14.97% | 22.83% |
* Technology Sector Average
Performance Comparison
DDD
3D Systems
3.10
-1.74
-35.95%
SSYS
Stratasys
10.35
-2.17
-17.33%
MTLS
Materialise
5.12
-0.08
-1.54%
NNDM
Nano Dimension
2.22
-0.66
-22.92%
DM
Desktop Metal
2.07
-4.84
-70.04%
3D Systems Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -8.55% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The call highlighted growth in consumables and healthcare, alongside significant product innovations. However, these were offset by flat revenues, declining gross margins, a negative adjusted EBITDA, and substantial impairment charges. The company maintains a strong cash position and is focused on future growth, but current economic challenges weigh heavily on short-term performance.Highlights
Growth in Consumables and New Applications
Consumable materials grew approximately 10% from the prior year and demonstrated a sequential growth of 9% in Q3. Industrial Applications group revenue is up 26% year-to-date, indicating strong growth potential.
Healthcare Segment Growth
The healthcare segment showed strong growth, with dental up over 30% and personalized healthcare up almost 20% year-over-year.
Innovations and New Product Introductions
Launched nearly 40 new materials, software enhancements, and metal and polymer printing platforms since Q3 last year. The introduction of new photopolymer printing platform PSLA270 and QuickCast Air for investment casting.
Strong Cash Position
Maintained a strong cash position with $190 million, with a focus on optimizing working capital and reducing inventory by 20% by year-end.
Lowlights
Flat Sequential Revenue
Revenues were flat on a sequential basis, with a 9% decline from the prior year, mainly due to macroeconomic pressures impacting hardware system sales.
Gross Margin Decline
Non-GAAP gross margin dropped to 37.6% due in part to increased inventory reserves and lower factory utilization.
Negative Adjusted EBITDA
Reported an adjusted EBITDA of negative $14.3 million for Q3, down from a gain of $4.7 million in the same quarter last year.
Impairment Charges
Non-cash charges of approximately $144 million associated with the impairment of goodwill and other long-lived assets.
Company Guidance
During the 3D Systems Third Quarter 2024 Earnings Call, the company provided updated guidance for the year, expecting full-year revenues between $440 million to $450 million, reflecting a mid- to high single-digit percentage sequential recovery in the second half of the year. The company also revised its full-year gross margin expectation to a range of 38% to 40%, citing short-term inventory reserve adjustments. Despite these challenges, 3D Systems emphasized its strategic focus on reducing operating expenses to below $60 million for the fourth quarter and achieving sequential improvement in adjusted EBITDA. The company's commitment to R&D was highlighted, with recognition of the robust 26% year-to-date revenue growth from its Industrial Applications group. Overall, 3D Systems remains optimistic about leveraging its strong cash position and in-sourcing initiatives to drive sustainable profitability and growth in its industrial and healthcare segments.3D Systems Corporate Events
M&A TransactionsBusiness Operations and Strategy
3D Systems Sells Geomagic to Focus on Core Strengths
Positive
Dec 12, 2024
3D Systems Corporation announced its decision to sell its Geomagic software portfolio to Hexagon Manufacturing Intelligence for $123 million. This strategic move allows 3D Systems to concentrate on its core software platforms, such as 3D Sprint, 3DXpert, and Oqton Industrial Manufacturing OS, enhancing its capabilities to support high-volume production environments and drive innovation in additive manufacturing.
Delistings and Listing ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
3D Systems Engages Investors Amid NYSE Compliance Notice
Neutral
Nov 22, 2024
3D Systems Corporation has received a notice from the NYSE for failing to timely file its quarterly report, with no immediate effect on its stock listing. The company is working to file by November 26, 2024, to regain compliance. Despite this setback, 3D Systems plans to release its full third-quarter financial results and hold a conference call to discuss its performance and future plans, engaging investors with insights into its operations and strategic direction.
Business Operations and StrategyFinancial Disclosures
3D Systems Delays Q3 Results Amid Revenue Challenges
Neutral
Nov 13, 2024
3D Systems has announced a delay in releasing its Q3 2024 financial results, now expected the week of November 25, 2024. Preliminary figures show a revenue dip to approximately $113 million, impacted by macroeconomic pressures on hardware sales, while materials revenue grew. The company highlights innovation and regulatory approvals in key markets like dental and aerospace, positioning for future growth. Despite challenges, 3D Systems is focused on operational efficiency and maintaining R&D investment to drive sustainable profitability and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.