3D Systems (DDD) AI Stock Analysis

• Market Cap: $265.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: -9.82%
• EPS Growth: 30.63%
• Country: US
• Employees: 1,833
• Sector: Technology
• Sector Strength: 66
• Industry: Computer Hardware
• EPS (TTM): -0.19
• Shares Outstanding: 135,544,650
• 10 Day Avg. Volume: 2,048,666
• 30 Day Avg. Volume: 2,740,128
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 122.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

3D Systems' stock faces significant challenges due to poor financial performance, with declining revenues and persistent losses. The technical indicators suggest bearish momentum, though the stock is currently oversold. While valuation metrics are unattractive due to negative earnings, strategic initiatives and cost-saving measures offer some hope for improvement. Investors should be cautious but may find potential in the company's plans to enhance operational efficiency and innovation.

Positive Factors

Cost Management

The company announced a $50 million cost reduction plan designed to improve gross margins and reduce operating expenses.

Debt Management

The company's total debt has been reduced by more than 50% over the past year, indicating a strong effort in managing liabilities.

Strategic Sale

An agreement was announced to sell the Geomagic software business to Hexagon AB for $123 million.

Negative Factors

Earnings Shortfall

Adjusted EBITDA were negative $19 million in the fourth quarter, below the consensus estimate of negative $9 million.

Guidance Revision

3D Systems lowered 2024 guidance. Revenue is now expected to decline 9% y/y vs. prior guidance of a 7% y/y decline.

Revenue Decline

Fourth-quarter revenue declined 3% year-over-year, to $111 million, driven by a decline in printer sales.

3D Systems Business Overview & Revenue Model

Company Description

3D Systems Corporation, through its subsidiaries, provides 3D printing and digital manufacturing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, color jet printing, and extrusion and SLA based bioprinting that transform digital data input generated by 3D design software, computer aided design (CAD) software, or other 3D design tools into printed parts. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as solutions for product design, simulation, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection and manufacturing workflows under the Geomagic brand. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, print simulation, and print queue management; and Bioprint Pro, a software solution that allows researchers to design and bioprint repeatable experiments. Additionally, the company provides maintenance and training services; manufacturing services; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, biotechnology, and other industries through direct sales force, channel partners, and appointed distributors. 3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill, South Carolina.

How the Company Makes Money

3D Systems makes money through the sale of 3D printers and related products, including a variety of materials specifically designed for different applications. The company generates revenue by providing software solutions that enhance the capabilities of its hardware offerings. Additionally, 3D Systems offers on-demand manufacturing services, allowing customers to outsource their 3D printing needs. Service contracts, maintenance agreements, and consulting services further contribute to the company's income. Partnerships with key industry players and the continuous development of innovative technologies are significant factors contributing to its earnings.

3D Systems Financial Statement Overview

Summary

3D Systems faces significant financial challenges, marked by declining revenues, persistent losses, and negative cash flows. The increasing leverage and declining equity further underscore financial instability. The company needs to address operational inefficiencies and explore strategic options to stabilize and improve its financial health.

Income Statement

3D Systems has experienced a declining trend in revenue over recent years, with a significant drop in revenue from 2022 to 2024. The company's gross profit margin has also decreased, reflecting weakened profitability. Net income has been negative, indicating consistent losses, with a worsening net profit margin year-on-year. The EBIT and EBITDA margins are also negative, showing operational challenges and inefficiencies in managing costs.

Balance Sheet

The balance sheet shows a decrease in total assets and stockholders' equity over the years, which is concerning. The debt-to-equity ratio has worsened, indicating higher leverage risk. However, the company maintains a positive equity ratio, suggesting some financial stability. Nonetheless, the declining trend in equity and increasing liabilities pose risks to financial health.

Cash Flow

Operating cash flows have been negative, indicating challenges in generating cash from core operations. Free cash flow has also been in deficit, limiting the company's ability to invest and grow. The company has struggled to convert net income to cash, as seen in the negative cash flow to net income ratios. However, the company's cash reserves have allowed for some buffer against these cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
440.12M	488.07M	538.03M	615.64M	557.24M
	Gross Profit
164.18M	196.42M	214.23M	263.78M	223.38M
	EBIT
-277.40M	-406.00M	-117.02M	-33.07M	-70.66M
	EBITDA
-277.40M	-313.69M	-75.06M	356.59M	-94.81M
	Net Income Common Stockholders
-255.59M	-362.69M	-122.95M	322.05M	-149.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.32M	331.52M	568.74M	789.66M	75.01M
	Total Assets
608.85M	990.66M	1.45B	1.55B	733.05M
	Total Debt
62.04M	399.30M	501.24M	502.62M	79.27M
	Net Debt
-109.28M	67.78M	113.10M	-287.03M	4.26M
	Total Liabilities
430.69M	561.90M	695.82M	706.72M	302.33M
	Stockholders Equity
176.19M	426.75M	749.94M	842.38M	430.72M
Cash Flow		Free Cash Flow
-61.01M	-107.88M	-90.89M	29.36M	-33.76M
	Operating Cash Flow
-44.89M	-80.69M	-68.39M	48.15M	-20.12M
	Investing Cash Flow
-19.02M	124.78M	-309.89M	260.56M	-24.23M
	Financing Cash Flow
-91.27M	-106.47M	-13.81M	405.80M	-6.98M

3D Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDD, the sentiment is Neutral. The current price of 2.25 is above the 20-day moving average (MA) of 1.95, below the 50-day MA of 2.32, and below the 200-day MA of 2.96, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DDD.

3D Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTLS	69 Neutral	$312.47M	31.01	3.82%	―	5.15%	40.64%
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
SKIL	50 Neutral	$166.42M	―	-81.43%	―	-4.02%	65.55%
MKFG	49 Neutral	$98.34M	―	-68.97%	―	-9.27%	19.30%
CAN	45 Neutral	$211.48M	―	-81.29%	―	27.35%	62.08%
DDD	42 Neutral	$265.67M	―	-84.78%	―	-9.82%	30.63%
DM	38 Underperform	$163.71M	―	-152.96%	―	-14.97%	22.83%

3D Systems Corporate Events

3D Systems Finalizes Sale of Geomagic Software

On April 1, 2025, 3D Systems Corporation completed the sale of its Geomagic software business to Hexagon Manufacturing Intelligence, Inc. and Hexagon Metrology Korea LLC for $123 million, with adjustments reducing the cash proceeds to $119.4 million. This transaction, initially announced in December 2024, is part of 3D Systems’ strategic move to streamline its operations and focus on its core 3D printing business. The sale includes a transition services agreement, indicating a continued relationship between the parties, and is expected to impact the company’s financials, as reflected in the unaudited pro forma financial statements.

Spark’s Take on DDD Stock

According to Spark, TipRanks’ AI Analyst, DDD is a Underperform.

3D Systems’ stock is rated low due to severe financial challenges, negative technical indicators, and valuation difficulties. The strategic initiatives discussed in the earnings call provide some hope for improvement, but the current financial and market conditions dominate the outlook.

To see Spark’s full report on DDD stock, click here.

3D Systems Announces New Cost Savings Initiative

On March 26, 2025, 3D Systems announced the next phase of its cost savings and restructuring initiative, aiming to achieve $50 million in annualized savings by mid-2026. The company reported a revenue of $440 million for 2024, with a focus on new product launches and operational efficiency to drive future growth. Despite a challenging year, 3D Systems plans to enhance its market position through strategic cost reductions and innovation, anticipating improved EBITDA performance by the end of 2025.