Markforged Holding (MKFG) AI Stock Analysis

• Market Cap: $98.34M
• Dividend Yield: N/A
• Average Volume (3M): 262.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -9.27%
• EPS Growth: 19.30%
• Country: US
• Employees: 270
• Sector: Technology
• Sector Strength: 80
• Industry: Computer Hardware
• EPS (TTM): -4.24
• Shares Outstanding: 20,747,000
• 10 Day Avg. Volume: 138,190
• 30 Day Avg. Volume: 262,005
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -1.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 5.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Markforged Holding faces significant financial challenges with declining revenue and negative cash flow, impacting its financial performance score negatively. However, technical analysis indicates strong upward momentum, which supports a more favorable short-term outlook. The valuation remains a concern due to negative earnings, but the potential for growth could attract speculative investors. Recent corporate events, including a merger and delisting, have introduced uncertainty, further weighing down the overall score.

Markforged Holding Business Overview & Revenue Model

Company Description

Markforged Holding Corporation (MKFG) is a leading innovator in the additive manufacturing industry, specializing in the development and production of advanced 3D printing technologies. The company operates primarily in the industrial sector, offering a range of high-performance 3D printers, materials, and software solutions that enable businesses to create durable end-use parts quickly and efficiently. Markforged's products are utilized across various industries, including aerospace, automotive, healthcare, and manufacturing, to streamline production processes and reduce costs.

How the Company Makes Money

Markforged generates revenue through the sale of its 3D printing hardware, which includes a range of printers tailored to different industrial needs. In addition to hardware sales, the company earns income through the sale of proprietary materials specifically designed for use with its printers, ensuring high-quality, reliable outputs. Another key revenue stream is the company's software solutions, which provide customers with advanced tools for designing, managing, and optimizing their 3D printing processes. Markforged also engages in service contracts and maintenance agreements, providing ongoing support and ensuring the longevity and efficiency of its products. Strategic partnerships and collaborations with other industry leaders further bolster its market presence and contribute to its revenue growth.

Markforged Holding Financial Statement Overview

Summary

Markforged Holding is struggling with profitability and cash generation amidst declining revenues. The company faces significant challenges in improving its financial performance, with high leverage and negative cash flow. While cash reserves offer some buffer, the overall financial health remains weak, necessitating strategic measures to stabilize and grow revenue while containing costs.

Income Statement

Markforged Holding has experienced declining revenue over recent years, with a revenue drop from $100.96M in 2022 to $85.09M in 2024. The company is operating at a loss, with negative EBIT and net income margins, indicating challenges in covering operating expenses and achieving profitability. The gross profit margin has decreased, reflecting increased cost pressure or inefficient cost management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, rising from 0.19 in 2022 to 0.38 in 2024, signaling increased financial leverage. The equity ratio has declined, indicating reduced financial stability. The negative net income impacts Return on Equity (ROE), which remains negative, reflecting a lack of profitability. Despite these challenges, the company has maintained a decent level of cash reserves relative to liabilities.

Cash Flow

Operating cash flow remains negative, worsening from -$48.9M in 2023 to -$61.28M in 2024, highlighting difficulties in generating cash from core operations. Free cash flow is also negative, indicating challenges in supporting growth or returning value to shareholders. The company has not been able to translate net income into positive cash flow, further stressing financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
85.09M	93.78M	100.96M	91.22M	71.85M
	Gross Profit
41.07M	44.41M	50.71M	52.85M	41.93M
	EBIT
-86.68M	-111.38M	-87.08M	-61.04M	-17.74M
	EBITDA
-86.68M	-98.46M	-23.35M	5.65M	-15.94M
	Net Income Common Stockholders
-85.57M	-103.57M	-25.39M	3.85M	-17.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.63M	116.85M	167.88M	288.60M	58.72M
	Total Assets
168.92M	247.95M	345.89M	337.31M	89.60M
	Total Debt
32.64M	43.14M	48.63M	0.00	5.02M
	Net Debt
-20.98M	-73.72M	-75.61M	-288.60M	-53.69M
	Total Liabilities
82.41M	86.34M	93.39M	93.14M	165.07M
	Stockholders Equity
86.50M	161.61M	252.50M	244.17M	-75.47M
Cash Flow		Free Cash Flow
-62.71M	-52.49M	-84.94M	-49.49M	-7.10M
	Operating Cash Flow
-61.28M	-48.90M	-73.52M	-45.70M	-6.46M
	Investing Cash Flow
-1.43M	42.10M	-90.90M	-3.79M	-522.00K
	Financing Cash Flow
-1.16M	-520.00K	1.55M	279.38M	5.93M

Markforged Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKFG, the sentiment is Positive. The current price of 4.74 is above the 20-day moving average (MA) of 4.68, above the 50-day MA of 3.54, and above the 200-day MA of 3.58, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKFG.

Markforged Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	75 Outperform	$168.07M	17.79	36.41%	―	5.18%	―
INTT	70 Outperform	$75.71M	25.19	-0.10%	―	5.19%	-101.31%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
LTRX	56 Neutral	$90.81M	―	-10.88%	―	-2.06%	-22.58%
MKFG	49 Neutral	$98.34M	―	-68.97%	―	-9.27%	19.30%
REKR	48 Neutral	$113.13M	―	-121.54%	―	17.97%	21.12%

Markforged Holding Corporate Events

Markforged Holding Completes Merger, Delists from NYSE

Markforged Holding Company announced the completion of a merger, resulting in significant changes to its corporate structure and stockholder rights. As of the effective time of the merger, all outstanding shares of common stock were converted to cash, and trading on the New York Stock Exchange was suspended. The merger led to the resignation of several board members and executives, including the CEO and CFO, and the appointment of new directors. The company’s certificate of incorporation and bylaws were also amended.

Spark’s Take on MKFG Stock

According to Spark, TipRanks’ AI Analyst, MKFG is a Neutral.

Markforged Holding is facing significant financial challenges with declining revenue and negative cash flow, impacting its financial performance score negatively. However, technical analysis indicates strong upward momentum, which supports a more favorable short-term outlook. The valuation remains a concern due to negative earnings, but the potential for growth could attract speculative investors. Overall, while current financial health is weak, technical indicators provide some optimism for price performance.

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

Markforged Holding Announces Merger with Nano US II

Markforged Holding Corporation announced an anticipated merger with Nano US II, Inc., a subsidiary of Nano Dimension Ltd., set to close following the Agreement and Plan of Merger dated September 25, 2024. The merger will result in Markforged becoming a wholly-owned subsidiary of Nano USA, and its removal from the NYSE. Stockholders are advised to provide specific tax documentation to avoid Israeli withholding tax on merger considerations, highlighting the merger’s significant operational and financial implications for stakeholders.

Spark’s Take on MKFG Stock

According to Spark, TipRanks’ AI Analyst, MKFG is a Neutral.

Markforged Holding faces significant financial and operational challenges, with declining revenues, high leverage, and negative cash flow impacting profitability. Despite positive technical momentum, the stock is overbought, and the negative P/E ratio highlights valuation concerns. A pending legal challenge related to a merger further adds uncertainty, weighing down the overall score.

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

Markforged Holding General Counsel Announces Resignation

On February 4, 2025, Stephen Karp informed Markforged Holding Corporation’s Board of Directors of his resignation as General Counsel, effective March 3, 2025, to pursue an opportunity outside the company. His resignation was not due to any disagreements with the company’s operations, management, or policies.