Materialise (MTLS) AI Stock Analysis

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Materialise

(NASDAQ:MTLS)

63Neutral

Materialise's overall stock score reflects solid financial performance, albeit with some technical weaknesses and valuation considerations. The company shows strength in its Medical and Software segments, but faces challenges in Manufacturing. While the earnings call provides a cautiously optimistic outlook, technical indicators suggest potential short-term headwinds.

Materialise (MTLS) vs. S&P 500 (SPY)

Market Cap

$255.76M

Dividend YieldN/A

Average Volume (3M)244.06K

Price to Earnings (P/E)17.6

Beta (1Y)0.84

Revenue Growth4.24%

EPS Growth100.00%

CountryUS

Employees2,437

SectorTechnology

Sector Strength51

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.25

Shares Outstanding59,067,184

10 Day Avg. Volume302,759

30 Day Avg. Volume244,065

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)N/A

Price to Sales (P/S)1.08

Price to Cash Flow (P/CF)N/A

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

$12.00

Price Target Upside177.14% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Materialise Business Overview & Revenue Model

Company DescriptionMaterialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. Its Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. The company's Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. Its Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.

How the Company Makes MoneyMaterialise generates revenue through several key streams. The company sells proprietary software licenses for its 3D printing software suite, which includes tools for design optimization, data preparation, and process management. It also earns income from providing additive manufacturing services, where it produces 3D-printed parts and prototypes for clients in various industries. Additionally, Materialise engages in strategic partnerships and collaborations with companies and research institutions that further its reach and capabilities in 3D printing applications. These partnerships often lead to co-development projects and shared revenue opportunities.

Materialise Financial Statement Overview

Summary

Materialise shows a solid financial performance with robust revenue growth and improved profitability. The balance sheet is stable with prudent debt management, and cash flow indicates efficient management despite increased capital expenditures.

Income Statement

Positive

Materialise's income statement demonstrates robust revenue growth, with a year-over-year increase of 4.16% from 2023 to 2024. The gross profit margin remains solid at 56.55%. Net profit margin improved significantly to 5.04%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting operational efficiency improvements. Overall, the company exhibits a strong revenue trajectory and profitability gains.

Balance Sheet

Positive

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.17, showcasing prudent leverage management. The equity ratio stands at 62.71%, indicating a strong equity base. Return on Equity (ROE) improved substantially to 5.41% in 2024, highlighting effective utilization of equity to generate profits. While the company's financial stability is commendable, the modest growth in stockholders' equity suggests room for further strengthening.

Cash Flow

Positive

Materialise's cash flow statement indicates a positive trajectory, with a substantial increase in operating cash flow to $31.46 million. The free cash flow to net income ratio improved, demonstrating efficient cash generation relative to profits. However, free cash flow growth rate is negative, driven by higher capital expenditures. Despite this, the operating cash flow to net income ratio of 2.34 highlights robust cash flow management, supporting overall financial health.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
266.76M	256.13M	232.02M	205.45M	170.45M
	Gross Profit
150.82M	145.13M	128.76M	117.28M	94.00M
	EBIT
9.43M	5.62M	3.24M	17.84M	-478.00K
	EBITDA
31.24M	30.09M	23.44M	36.72M	13.75M
	Net Income Common Stockholders
13.44M	6.72M	-2.15M	13.15M	-7.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.30M	127.57M	140.87M	196.03M	111.54M
	Total Assets
396.34M	396.63M	411.26M	413.41M	327.67M
	Total Debt
41.28M	64.40M	80.98M	99.11M	115.11M
	Net Debt
-61.02M	-63.17M	-59.89M	-96.92M	3.57M
	Total Liabilities
147.84M	160.04M	182.33M	180.83M	194.56M
	Stockholders Equity
248.58M	236.65M	228.96M	232.58M	133.10M
Cash Flow		Free Cash Flow
6.81M	8.40M	-64.00K	14.12M	12.33M
	Operating Cash Flow
31.46M	20.16M	24.71M	25.84M	29.98M
	Investing Cash Flow
-28.59M	-11.04M	-53.92M	-13.13M	-28.27M
	Financing Cash Flow
-27.64M	-22.37M	-24.87M	71.16M	-16.89M

Materialise Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.33

Price Trends

50DMA

6.05

Negative

100DMA

6.84

Negative

200DMA

6.16

Negative

Market Momentum

MACD

-0.41

Negative

RSI

29.52

Positive

STOCH

8.04

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTLS, the sentiment is Negative. The current price of 4.33 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 6.05, and below the 200-day MA of 6.16, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 29.52 is Positive, neither overbought nor oversold. The STOCH value of 8.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTLS.

Materialise Risk Analysis

Materialise disclosed 72 risk factors in its most recent earnings report. Materialise 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

Materialise Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTLS	63 Neutral	$255.76M	17.60	5.60%	―	4.24%	100.00%
KLTR	59 Neutral	$302.11M	―	-114.48%	―	2.02%	36.61%
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%
MVIS	49 Neutral	$298.91M	―	-134.07%	―	-35.31%	-2.18%
MKFG	42 Neutral	$98.34M	―	-68.97%	―	-9.27%	19.30%
DM	38 Underperform	$163.71M	―	-152.96%	―	-14.97%	22.83%
DDD	37 Underperform	$275.16M	―	-84.78%	―	-9.82%	30.63%

* Technology Sector Average

Performance Comparison

MTLS

Materialise

4.33

-0.64

-12.88%

DDD

3D Systems

2.04

-1.49

-42.21%

MVIS

Microvision

1.22

-0.28

-18.67%

Desktop Metal

4.96

-3.63

-42.26%

MKFG

Markforged Holding

4.74

-0.96

-16.84%

KLTR

Kaltura

1.96

0.76

63.33%

Materialise Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -53.04% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed performance with strong growth in the Medical segment and advancements in Manufacturing, contrasted by challenges in the Manufacturing segment and increased costs leading to a negative EBIT in Q4. The deferred revenue in Software indicates potential future growth, but current market conditions remain challenging.

Highlights

Record Growth in Medical Segment

Materialise Medical achieved a 14% revenue growth in Q4 2024 and a 15% growth for the full year, setting a quarterly revenue record. Medical Devices and Services saw growth in both direct and partner sales.

Advancements in Manufacturing

Materialise expanded its aerospace segment with a 28% revenue growth for the year and opened an aerospace competence center in Delft. Additionally, the company saw over 30% growth in Huge and Heavy parts production.

Strong Deferred Revenue in Software

Deferred revenue related to software licenses and maintenance increased by €5.9 million in Q4 2024, ending at €46.9 million.

Lowlights

Manufacturing Segment Decline

The Manufacturing segment experienced a 13% revenue decrease in Q4 2024 due to weak prototyping demand and challenging market conditions in Europe, particularly in the automotive sector.

Negative EBIT in Q4

Consolidated adjusted EBIT for Q4 2024 decreased to minus €1.2 million, with a negative EBIT margin of 1.8%.

Restructuring and Increased Costs

Q4 2024 costs included restructuring expenses and increased R&D spend, impacting operational profitability.

Company Guidance

During the Materialise Fourth Quarter 2024 Financial Results Conference Call, the company provided guidance for 2025, indicating anticipated revenues in the range of €270 million to €285 million and an adjusted EBIT between €6 million and €10 million. The company expects continued growth in its Medical and Software segments, despite the ongoing transition of Software to a cloud-based subscription model. However, the Manufacturing segment is expected to face challenges due to the persistent uncertain macroeconomic environment in Europe. In 2024, Materialise achieved a 4% revenue growth with over €267 million in revenue, maintaining its adjusted EBIT stable while navigating a difficult year marked by high interest rates and geopolitical tensions. The company also highlighted strategic achievements, such as the launch of the Mimics platform and the opening of a new aerospace competence center in Delft, which contributed to a 28% revenue growth in the aerospace segment. Additionally, the transition of Software to a subscription-based model saw recurring revenue from software maintenance and license sales increase by 19% in the fourth quarter.

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.