Materialise (MTLS) AI Stock Analysis

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Materialise

(NASDAQ:MTLS)

66Neutral

Materialise's stock score reflects strong financial performance and revenue growth despite challenging conditions. However, high valuation, decreased profitability, and mixed technical indicators temper the overall outlook. The company's resilience in the medical segment and sustainability efforts are positive, but market uncertainties and segment-specific challenges persist.

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

Market Cap

$310.69M

Dividend YieldN/A

Average Volume (3M)143.97K

Price to Earnings (P/E)30.3

Beta (1Y)0.81

Revenue Growth5.15%

EPS Growth40.64%

CountryUS

Employees488

SectorTechnology

Sector Strength77

IndustrySoftware - Application

Share Statistics

EPS (TTM)-0.01

Shares Outstanding59,067,184

10 Day Avg. Volume106,200

30 Day Avg. Volume143,970

Financial Highlights & Ratios

PEG Ratio-0.92

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio46.36

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$8.50

Price Target Upside64.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 exhibits a solid financial position with consistent revenue growth and improving profitability metrics. The balance sheet is strong with low leverage, while cash flow generation remains stable despite some volatility in free cash flow. Continued focus on operational efficiency and cash management will be key to sustaining growth and meeting strategic objectives.

Income Statement

Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
6.23M	9.43M	5.62M	3.24M	17.84M	-478.00K
	EBITDA
31.88M	31.24M	30.09M	23.44M	36.72M	13.75M
	Net Income Common Stockholders
9.58M	13.44M	6.72M	-2.15M	13.15M	-7.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
104.18M	102.30M	127.57M	140.87M	196.03M	111.54M
	Total Assets
390.45M	396.34M	396.63M	411.26M	413.41M	327.67M
	Total Debt
36.44M	41.28M	64.40M	80.98M	99.11M	115.11M
	Net Debt
-67.74M	-61.02M	-63.17M	-59.89M	-96.92M	3.57M
	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 Price5.17

Price Trends

50DMA

4.97

Positive

100DMA

6.20

Negative

200DMA

6.12

Negative

Market Momentum

MACD

0.08

Positive

RSI

49.98

Neutral

STOCH

28.10

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 5.17 is below the 20-day moving average (MA) of 5.24, above the 50-day MA of 4.97, and below the 200-day MA of 6.12, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 28.10 is Neutral, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLTR	68 Neutral	$334.89M	―	-89.29%	―	2.40%	54.99%
MTLS	66 Neutral	$310.69M	30.30	3.82%	―	5.15%	40.64%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
MKFG	49 Neutral	$98.34M	―	-68.97%	―	-9.27%	19.30%
MVIS	41 Neutral	$286.65M	―	-135.21%	―	-41.76%	5.56%
DM	38 Underperform	$163.71M	―	-152.96%	―	-14.97%	22.83%
DDD	37 Underperform	$231.90M	―	-99.85%	―	-8.09%	22.06%

* Technology Sector Average

Performance Comparison

MTLS

Materialise

5.17

0.03

0.58%

DDD

3D Systems

1.73

-1.83

-51.40%

MVIS

Microvision

1.11

-0.05

-4.31%

Desktop Metal

4.96

-1.04

-17.33%

MKFG

Markforged Holding

4.74

0.47

11.01%

KLTR

Kaltura

2.15

0.95

79.17%

Materialise Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 11.66%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive achievements, particularly in sustainability, medical segment growth, and cash position, alongside significant challenges, including a net loss, declines in software and manufacturing revenue, and decreased profitability metrics. The ongoing transition to a subscription-based model in the software segment also contributed to deferred revenue. While the company remains optimistic about stabilization in the second half of the year, current challenges weigh heavily on its performance.

Q1-2025 Updates

Positive Updates

Sustainability Progress

Materialise reduced emissions by 32% in 2024, reflecting a 3% reduction from 2023, and set a target to cut absolute emissions by 55% by 2029.

Revenue Growth

Despite challenging market conditions, Materialise grew its revenue by more than 4% in Q1 2025.

Medical Segment Performance

Materialise Medical increased revenue by almost 19% with continued strong uptake of personalized solutions.

Innovations in Software

Launch of Mimics Flow and new products like Magics 2025 release and next-generation build processors showed significant efficiency gains and technological advancements.

Aerospace Segment Growth

Sales in the aerospace segment grew by 23% in Q1 2025.

Strong Cash Position

Materialise increased its net cash position to €67.7 million by the end of Q1 2025, up by almost €7 million.

Negative Updates

Net Loss

Materialise reported a net loss of €0.5 million in Q1 2025, impacted by unfavorable exchange rate fluctuations.

Software and Manufacturing Revenue Decline

Revenues in the Software and Manufacturing segments decreased by around 6% each due to uncertain market conditions.

Decreased Adjusted EBIT and EBITDA

Adjusted EBIT decreased to €0.6 million from €2.7 million in the same period last year, and adjusted EBITDA decreased to €6.1 million from €8.1 million.

Challenges in Manufacturing Segment

The Manufacturing segment faced a challenging market environment with macroeconomic uncertainty impacting investment climate, leading to a 5.5% revenue decrease compared to Q1 2024.

Company Guidance

During the first quarter of 2025, Materialise reported a revenue increase of more than 4%, reaching €66.4 million, despite challenging macroeconomic conditions. The Medical segment led with a nearly 19% growth, while the Software and Manufacturing segments saw a 6% revenue decline. The company reduced emissions by 32% in 2024 and aims for a 55% reduction by 2029. Adjusted EBIT stood at €0.6 million, with a net loss of €0.5 million, impacted by unfavorable exchange rate fluctuations. Materialise maintained a strong net cash position of €67.7 million, driven by positive free cash flow. For the full year, the company expects revenue between €270 million and €285 million and adjusted EBIT between €6 million and €10 million, anticipating stabilization in the second half of the year.

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.