Nano Dimension (NNDM) AI Stock Analysis

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Nano Dimension

(NASDAQ:NNDM)

59Neutral

Nano Dimension's overall stock score is shaped by impressive revenue growth and strategic acquisitions, which are offset by profitability challenges and integration risks. The neutral technical indicators and negative valuation metrics further temper the positive aspects.

Nano Dimension (NNDM) vs. S&P 500 (SPY)

Market Cap

$311.32M

Dividend YieldN/A

Average Volume (3M)2.69M

Price to Earnings (P/E)―

Beta (1Y)1.15

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees519

SectorTechnology

Sector Strength40

IndustryComputer Hardware

Share Statistics

EPS (TTM)-0.39

Shares Outstanding219,237,820

10 Day Avg. Volume4,436,658

30 Day Avg. Volume2,691,702

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)8.21

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Nano Dimension Business Overview & Revenue Model

Company DescriptionNano Dimension Ltd., together with its subsidiaries, provides additive electronics in Israel and internationally. The company's flagship product is DragonFly IV system that serves cross-industry High-Performance-Electronic-Devices' fabrication needs by depositing proprietary conductive and dielectric substances, as well as integrates in-situ capacitors, antennas, coils, transformers, and electromechanical components. It also provides nanotechnology based conductive and dielectric inks; and FLIGHT software platform that enables the 3D design of electrical and mechanical features. The company markets and sells products and services to companies that develop products with electronic components, including companies in the defense, automotive, consumer electronics, semiconductor, aerospace, and medical industries, as well as research institutes. Nano Dimension Ltd. was founded in 2012 and is headquartered in Ness Ziona, Israel.

How the Company Makes MoneyNano Dimension generates revenue through the sale of its 3D printing systems and related products. The company's 3D printers, which are capable of producing complex electronic components, are sold to a range of industries, including aerospace, defense, automotive, consumer electronics, and healthcare. Additionally, Nano Dimension earns money from the sale of proprietary materials, such as conductive inks and dielectric polymers, which are necessary for the operation of its printing systems. The company also offers software solutions that enhance the functionality and integration of its hardware. Significant partnerships with research institutions and industrial companies help drive innovation and adoption of its technologies, contributing to its revenue growth.

Nano Dimension Financial Statement Overview

Summary

Nano Dimension demonstrates strong revenue growth and a robust equity position, but profitability and cash flow remain significant concerns due to ongoing operational losses. The company needs to address underlying efficiency and cost control issues to improve overall financial health.

Income Statement

Neutral

The company shows significant revenue growth with a TTM (Trailing-Twelve-Months) increase of 2.56% from the prior year. However, it continues to operate at a loss with negative net profit and EBIT margins, indicating substantial profitability challenges. The gross profit margin is positive at 47.07%, suggesting potential for future efficiency improvements.

Balance Sheet

Positive

Nano Dimension maintains a strong equity base with an equity ratio of 95.43% and a low debt-to-equity ratio of 0.01, reflecting financial stability. However, the continuous losses impact the return on equity, which remains negative at -10.22%, indicating poor utilization of equity.

Cash Flow

Neutral

The company shows a high negative free cash flow growth rate, reflecting operational challenges. The operating cash flow to net income ratio is 0.58, indicating some level of operational cash generation relative to net losses. However, the free cash flow remains negative, posing liquidity concerns.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
57.75M	56.31M	43.63M	10.49M	3.40M	7.07M
	Gross Profit
27.18M	25.46M	14.05M	1.12M	1.06M	1.99M
	EBIT
-87.66M	-124.88M	-131.00M	-82.92M	-35.70M	-14.84M
	EBITDA
-19.75M	-48.21M	-219.56M	-195.69M	-45.74M	-5.32M
	Net Income Common Stockholders
-88.52M	-54.55M	-228.29M	-200.82M	-46.45M	-16.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
206.99K	851.54M	1.03B	1.29B	670.93M	3.89M
	Total Assets
621.48K	1.06B	1.20B	1.39B	689.26M	22.86M
	Total Debt
38.52K	13.81M	17.96M	3.34M	2.62M	2.09M
	Net Debt
-168.47K	-295.76M	-667.41M	-850.29M	-582.72M	-1.80M
	Total Liabilities
451.21K	48.55M	53.17M	45.72M	22.14M	11.26M
	Stockholders Equity
170.26K	1.01B	1.15B	1.34B	667.12M	11.60M
Cash Flow		Free Cash Flow
-53.73M	-115.69M	-101.44M	-468.36M	-11.01M	-13.29M
	Operating Cash Flow
-51.32M	-105.07M	-92.05M	-42.58M	-9.65M	-12.68M
	Investing Cash Flow
-139.29M	-166.60M	-67.67M	-496.68M	-86.76M	-641.00K
	Financing Cash Flow
-87.99M	-105.41M	-5.27M	804.18M	677.73M	13.44M

Nano Dimension Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.41

Price Trends

50DMA

2.12

Negative

100DMA

2.22

Negative

200DMA

2.24

Negative

Market Momentum

MACD

-0.17

Positive

RSI

20.73

Positive

STOCH

5.61

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNDM, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 2.12, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 20.73 is Positive, neither overbought nor oversold. The STOCH value of 5.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNDM.

Nano Dimension Risk Analysis

Nano Dimension disclosed 47 risk factors in its most recent earnings report. Nano Dimension 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

Nano Dimension 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	$245.72M	16.95	5.60%	―	4.24%	100.00%
PRLB	61 Neutral	$849.37M	53.59	2.43%	―	-0.59%	-0.85%
NNDM	59 Neutral	$311.32M	―	-9.36%	―	―	―
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
SSYS	47 Neutral	$651.79M	―	-14.34%	―	-8.79%	5.32%
DM	38 Underperform	$163.71M	―	-152.96%	―	-14.97%	22.83%
DDD	37 Underperform	$281.93M	―	-84.78%	―	-9.82%	30.63%

* Technology Sector Average

Performance Comparison

NNDM

Nano Dimension

1.41

-1.29

-47.78%

DDD

3D Systems

2.08

-1.84

-46.94%

PRLB

Proto Labs

35.05

2.16

6.57%

SSYS

Stratasys

9.11

-1.33

-12.74%

MTLS

Materialise

4.40

-0.72

-14.06%

Desktop Metal

4.96

-5.44

-52.31%

Nano Dimension Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -34.42% | Next Earnings Date: May 15, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial performance in terms of revenue and margin improvements, along with strategic acquisitions aimed at future growth. However, concerns about shareholder activism, integration of past acquisitions, and pending regulatory approvals for new acquisitions present challenges. The company is confident in its strategy to achieve long-term profitability and shareholder value.

Highlights

Record Third Quarter Revenue

Achieved $15 million in revenue for Q3 2024, marking the best third quarter ever for the company and a 22% increase over the same period last year.

Improved Gross Margin

Gross margin improved to 48%, up from 44% in the previous year. Adjusted gross margin reached 51%, up from 48%.

Significant Reduction in Net Cash Burn

Reduced net cash burn from $16 million last year to $3 million, nearing breakeven.

Strategic Acquisitions

Acquired Desktop Metal and Markforged at less than 1x sales multiple, positioning the company as an industry leader with diverse technology offerings and over 1,000 patents.

Strong Cash Position

Maintained a strong cash position with $470 million, providing flexibility for future growth and profitability.

Organic Growth

Achieved 29% organic growth in the original Nano Dimension business.

Lowlights

Shareholder Activism

Facing challenges from activist shareholders trying to influence the company's direction and potentially dismantle it.

Acquisition Integration Concerns

Past acquisitions have not been integrated well, with concerns about deteriorating revenue growth and lack of synergy realization.

Regulatory Approval Pending

Still awaiting regulatory approval for the Desktop Metal and Markforged acquisitions, with completion expected by Q4 2024 and Q1 2025 respectively.

Company Guidance

During Nano Dimension's Q3 2024 earnings call, CEO Yoav Stern highlighted key financial metrics and strategic developments. The company achieved its best third quarter ever with $15 million in revenue, marking a 22% increase from the same period last year. The gross margin improved to 48% from 44%, and the adjusted gross margin reached 51%. Stern emphasized the importance of reaching a 55% gross margin to ensure profitability. Nano Dimension also significantly reduced its net cash burn from $16 million to $3 million, moving closer to breakeven. The call also addressed the company's recent acquisitions of Desktop Metal and Markforged, expected to close in Q4 2024 and Q1 2025, respectively. Stern reassured shareholders about the strategic value of these acquisitions and the company's focus on enhancing profitability and shareholder value.

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.