Materialise (MTLS) AI Stock Analysis

• Market Cap: $325.46M
• Dividend Yield: N/A
• Average Volume (3M): 128.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 0.73%
• EPS Growth: -54.49%
• Country: US
• Employees: 488
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 59,067,184
• 10 Day Avg. Volume: 111,103
• 30 Day Avg. Volume: 128,677
• 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: 0.64
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.52
• Enterprise Value/Ebitda: 2.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $6.50 ▲(7.97% Upside)

The score is driven primarily by solid financial quality indicators (strong gross margin, sharply improved free cash flow, and reduced leverage), supported by an above-moving-averages price trend. These positives are tempered by pressured profitability (lower net margin/ROE), mixed momentum signals (slightly negative MACD), expensive valuation (P/E 74.28), and earnings-call risks tied to weakness and losses in the Software/Manufacturing segments despite strong Medical performance and maintained guidance.

Positive Factors

High gross margin

A 56%+ gross margin indicates durable unit economics from software and specialized medical services, giving the company pricing power and a persistent buffer to cover R&D and fixed costs, supporting sustainable profitability through industry cycles.

Material cash generation

A large FCF improvement and a net cash position strengthen the balance sheet, reduce refinancing risk, and provide internal funding for R&D, M&A or buybacks. This durable cash generation enhances financial flexibility across medium-term cyclical downturns.

Medical segment leadership

Consistent double-digit medical revenue growth and very high EBITDA margins reflect strong product-market fit in healthcare, recurring partnerships, and higher-margin solutions. This segment provides durable revenue diversification and margin resilience versus cyclical end markets.

Negative Factors

Manufacturing unit loss

A negative adjusted EBITDA in manufacturing signals structural scaling or cost-competitiveness issues in a capital-intensive segment. Persistent losses can erode consolidated margins and may require restructuring or incremental investment to restore sustainable profitability.

Revenue declines in core segments

Declines in both software subscriptions and manufacturing services weaken recurring revenue and operational leverage. If these trends persist due to macro or sectoral headwinds, they can constrain long-term top-line growth and make margin recovery harder without market-share gains.

Compressed net margin and ROE

A sharp drop in net margin and low ROE indicate reduced profitability after costs and lower returns on shareholder capital. Sustained compression limits reinvestment capacity, raises capital costs, and may cap long-term shareholder value creation absent structural improvements.

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 services. The company offers its software solutions, such as Magics and 3D Sprint, on a subscription basis, which provides a steady income as customers pay for access to the tools necessary for 3D printing. Additionally, Materialise earns revenue from its medical segment, where it provides 3D printing services for personalized medical devices, surgical planning, and anatomical models, often in collaboration with healthcare professionals and institutions. The company also engages in partnerships with other industry leaders to expand its service offerings and reach, further contributing to its revenue. Furthermore, Materialise capitalizes on the growing demand for additive manufacturing by providing consulting services and custom 3D printed products, adding to its diverse revenue mix.

Materialise Financial Statement Overview

Summary

Revenue grew modestly (TTM +3.44%) and gross margin remains strong (56.46%), while free cash flow improved sharply (TTM +492.43%) and leverage is lower (debt-to-equity 0.26). Offsetting these positives, profitability is pressured with a much lower net margin (1.73% vs. 5.04% prior) and reduced ROE (2.55%).

Income Statement

Materialise has shown consistent revenue growth with a 3.44% increase in the TTM period. The gross profit margin remains strong at 56.46%, indicating efficient cost management. However, the net profit margin has decreased to 1.73% from 5.04% in the previous year, suggesting increased expenses or reduced pricing power. The EBIT and EBITDA margins are relatively stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.26 in the TTM period, indicating reduced leverage and a stronger equity position. Return on equity has decreased to 2.55%, suggesting lower profitability relative to shareholder equity. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

Materialise has demonstrated a substantial improvement in free cash flow growth, with a 492.43% increase in the TTM period. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is positive, reflecting the company's ability to generate cash beyond its net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	704.96M	266.76M	256.13M	232.02M	205.45M	170.45M
Gross Profit	398.56M	150.82M	145.13M	128.77M	118.17M	94.00M
EBITDA	78.33M	31.24M	30.09M	23.44M	36.72M	13.75M
Net Income	13.84M	13.44M	6.72M	-2.12M	13.15M	-7.04M
Balance Sheet
Total Assets	415.51M	396.34M	396.63M	411.26M	413.41M	398.78M
Cash, Cash Equivalents and Short-Term Investments	132.02M	102.30M	127.57M	140.87M	196.03M	136.47M
Total Debt	64.28M	41.28M	64.40M	80.98M	99.11M	140.84M
Total Liabilities	164.14M	147.84M	160.04M	182.33M	180.83M	235.83M
Stockholders Equity	251.45M	248.58M	236.65M	228.96M	232.58M	162.96M
Cash Flow
Free Cash Flow	23.45M	5.08M	8.40M	-2.48M	14.12M	12.33M
Operating Cash Flow	73.24M	31.46M	20.16M	22.29M	25.84M	29.98M
Investing Cash Flow	-43.45M	-28.59M	-11.04M	-53.86M	-13.13M	-28.27M
Financing Cash Flow	33.75M	-27.64M	-22.37M	-22.51M	71.16M	-16.89M

Materialise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 6.02 is above the 20-day moving average (MA) of 5.69, above the 50-day MA of 5.76, and above the 200-day MA of 5.56, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 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	72 Outperform	$194.22M	29.45	14.60%	0.57%	11.05%	18.55%
MKTW	66 Neutral	$265.28M	1.59	―	14.78%	-19.17%	308.81%
MTLS	65 Neutral	$325.46M	―	1.73%	―	0.73%	-54.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
API	54 Neutral	$389.94M	86.51	0.84%	―	1.62%	―
NRDY	48 Neutral	$183.59M	―	-120.79%	―	-9.86%	0.87%
CMRC	46 Neutral	$253.54M	―	-37.23%	―	2.97%	53.53%

Materialise Corporate Events

Materialise Announces Significant Transparency Notification

On December 2, 2025, Materialise NV announced the receipt of a transparency notification from Wilfried Vancraen, Hilde Ingelaere, and the IDEM partnership, regarding their holding of voting securities upon first admission to trading. This notification, dated November 28, 2025, indicated that the threshold of 70% voting rights had been crossed as of November 20, 2025. This development highlights a significant concentration of voting power within the company, potentially impacting its governance and strategic direction.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise Begins Trading on Euronext Brussels to Expand Market Reach

On November 20, 2025, Materialise NV announced the commencement of trading its ordinary shares on Euronext Brussels, complementing its existing Nasdaq listing. This strategic move, supported by KBC Securities and legal advisors Freshfields and Fenwick, aims to enhance the company’s market presence in Europe. The founders, Fried Vancraen and Hilde Ingelaere, have arranged to sell up to 590,000 shares, representing about 1% of the total outstanding shares, while maintaining their ownership interest. This additional listing is expected to bolster Materialise’s growth and long-term success, reflecting its commitment to continuity and expansion in the 3D printing industry.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise NV Expands Market Reach with Euronext Brussels Listing

On November 18, 2025, Materialise NV announced the admission of its ordinary shares to trading on Euronext Brussels, complementing its existing Nasdaq listing. This strategic move aims to enhance the company’s market presence and accessibility to European investors, potentially impacting its operations and industry positioning. The listing involves significant economic risks, and investors are advised to consider various factors, including the company’s dependency on specific industries and the evolving market dynamics of additive manufacturing.

The most recent analyst rating on (MTLS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.

Materialise NV Approves Key Resolutions at Extraordinary Shareholders’ Meeting

On November 14, 2025, Materialise NV held an Extraordinary Shareholders’ Meeting where all proposed resolutions were approved. These resolutions included share capital movements, a new authorization for share buybacks, amendments to the articles of association, and the introduction of double voting rights for certain shares. Additionally, the remuneration policy was approved, the statutory auditor was mandated with sustainability assurance, and the board of directors’ composition was confirmed. These changes are set to enhance Materialise’s corporate governance and strategic flexibility, potentially impacting its market positioning positively.

The most recent analyst rating on (MTLS) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Materialise stock, see the MTLS Stock Forecast page.