Materialise (MTLS) AI Stock Analysis

• Market Cap: $300.06M
• Dividend Yield: N/A
• Average Volume (3M): 113.95K
• Price to Earnings (P/E): 48.5
• Beta (1Y): 0.97
• Revenue Growth: 3.63%
• EPS Growth: -48.48%
• Country: US
• Employees: 488
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 59,067,184
• 10 Day Avg. Volume: 103,948
• 30 Day Avg. Volume: 113,947
• PEG Ratio: 0.27
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 79.06
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 8.14
• 1Y Price Target: $8.00
• Price Target Upside: 59.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $5.50 ▲(9.78% Upside)

Materialise's overall stock score is influenced by strong financial performance and growth in the Medical segment, despite challenges in Manufacturing and Software. The technical indicators suggest potential bearish sentiment, but the company's strategic investments and partnerships provide a positive outlook. The valuation reflects growth prospects, though it comes at a premium.

Materialise Business Overview & Revenue Model

Company Description

Materialise 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 Money

Materialise generates revenue through multiple streams, primarily from software licensing and service fees. The software segment includes sales from its proprietary software solutions that assist in the design and preparation of 3D printing processes, with recurring revenue from licenses and subscriptions. Additionally, the company earns significant income from its 3D printing services, providing custom manufacturing solutions for clients across various industries. Materialise also engages in partnerships with major players in the 3D printing ecosystem, enhancing its market reach and capabilities, further contributing to its revenue. The company's focus on innovation and expansion into new markets, such as healthcare applications, also plays a critical role in driving its financial growth.

Materialise Financial Statement Overview

Summary

Materialise demonstrates solid financial performance with consistent revenue growth and improving profitability. The balance sheet is strong, with low leverage and robust cash generation, despite some volatility in free cash flow. Challenges include pressures on operational efficiency and potential liquidity constraints.

Income Statement

Materialise has shown a consistent growth trajectory in total revenue over the years, with a notable increase from $170.4M in 2020 to $269.9M in TTM 2025. The gross profit margin remains strong at 56.3% in TTM, and the net profit margin has improved to 3.6% from negative levels in 2022. However, EBIT margin has decreased to 2.3% in TTM, indicating pressures on operational efficiency. EBITDA margin is solid at 11.8%, showing stable earnings before non-cash expenses.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.15, suggesting a conservative leverage approach. The equity ratio stands at 63.7% in TTM, indicating strong equity financing. Return on Equity has improved to 3.9% in TTM, reflecting better profitability. However, the decrease in cash and short-term investments over the years indicates potential liquidity constraints.

Cash Flow

Operating cash flow to net income ratio is robust at 3.2 in TTM, highlighting strong cash generation relative to net income. However, free cash flow growth has been volatile, with TTM free cash flow at $5.8M, a slight improvement from previous periods. The free cash flow to net income ratio is lower at 0.6, indicating less cash available for expansion or dividends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.86M	266.76M	256.13M	232.02M	205.45M	170.45M
Gross Profit	151.81M	150.82M	145.13M	128.76M	117.28M	94.00M
EBITDA	31.88M	31.24M	30.09M	23.44M	36.72M	13.75M
Net Income	9.58M	13.44M	6.72M	-2.15M	13.15M	-7.27M
Balance Sheet
Total Assets	390.45M	396.34M	396.63M	411.26M	413.41M	327.67M
Cash, Cash Equivalents and Short-Term Investments	104.18M	102.30M	127.57M	140.87M	196.03M	111.54M
Total Debt	36.44M	41.28M	64.40M	80.98M	99.11M	115.11M
Total Liabilities	141.75M	147.84M	160.04M	182.33M	180.83M	194.56M
Stockholders Equity	248.79M	248.58M	236.65M	228.96M	232.58M	133.10M
Cash Flow
Free Cash Flow	5.76M	5.08M	8.40M	-64.00K	14.12M	12.33M
Operating Cash Flow	30.78M	31.46M	20.16M	24.71M	25.84M	29.98M
Investing Cash Flow	-27.78M	-28.59M	-11.04M	-53.92M	-13.13M	-28.27M
Financing Cash Flow	-27.03M	-27.64M	-22.37M	-24.87M	71.16M	-16.89M

Materialise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.01
• 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 MTLS, the sentiment is Negative. The current price of 5.01 is below the 20-day moving average (MA) of 5.13, below the 50-day MA of 5.47, and below the 200-day MA of 6.16, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 25.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTLS.

Materialise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRAK	70 Outperform	$299.00M	49.28	14.17%	0.44%	9.73%	22.33%
MTLS	66 Neutral	$300.06M	48.46	2.21%	―	3.63%	-48.48%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%
MKTW	61 Neutral	$304.18M	1.73	-10.56%	9.38%	-17.17%	497.89%
CMRC	59 Neutral	$373.00M	―	-55.85%	―	4.06%	57.50%
API	54 Neutral	$343.18M	―	-3.84%	―	-3.34%	48.15%
NRDY	48 Neutral	$235.96M	―	-105.81%	―	-10.85%	-15.09%