Velo3D (VELO) AI Stock Analysis

• Market Cap: $83.00M
• Dividend Yield: N/A
• Average Volume (3M): 9.34K
• Price to Earnings (P/E): ―
• Beta (1Y): -4.37
• Revenue Growth: -5.66%
• EPS Growth: 78.51%
• Country: US
• Employees: 237
• Sector: Technology
• Sector Strength: 92
• Industry: Hardware & Equipment
• EPS (TTM): -0.98
• Shares Outstanding: 14,067,551
• 10 Day Avg. Volume: 15,466
• 30 Day Avg. Volume: 9,339
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 17.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 38 Underperform
• Price Target: ―

Velo3D's overall score reflects severe financial challenges, notably negative profitability and cash flow issues. Technical analysis shows bearish trends, while valuation remains a concern due to negative earnings. The significant stock price drop post-earnings indicates negative sentiment, contributing to a low score.

Velo3D Business Overview & Revenue Model

Company Description

Velo3D (VLDX) is a technology company that operates within the advanced manufacturing sector, specializing in additive manufacturing solutions. The company focuses on producing 3D metal printing systems that enable the creation of high-value metal parts with complex geometries. Velo3D's core products include its Sapphire family of printers, Flow print preparation software, and Assure quality assurance and control software. These offerings cater to industries such as aerospace, energy, and industrial goods, where precision and performance are critical.

How the Company Makes Money

Velo3D makes money primarily through the sale of its 3D metal printing systems, which include hardware and proprietary software solutions. The company generates revenue from the initial sale of its printers and ongoing software licenses and maintenance services. Additionally, Velo3D offers consumables such as metal powders and spare parts as part of its ecosystem, providing a recurring revenue stream. The company may also engage in strategic partnerships and collaborations with key industry players to enhance its market presence and drive sales growth. Additionally, Velo3D's revenue is influenced by its ability to penetrate industries requiring high-performance metal parts and by expanding its customer base through innovative product offerings.

Velo3D Financial Statement Overview

Summary

Velo3D shows revenue growth but struggles with operational inefficiencies and negative profitability. The balance sheet indicates controlled leverage, yet low returns on equity. Cash flow challenges persist, highlighting the need for strategic improvements.

Income Statement

Velo3D exhibits significant revenue growth from 2021 to 2022, but this trajectory is marred by consistent negative profitability margins. The gross profit margin and net profit margin remain negative, indicating high operational costs and substantial losses. Despite a positive revenue growth trend, the margins highlight ongoing financial struggles.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, suggesting controlled leverage. However, the return on equity is negative due to ongoing net losses, signaling inefficiencies in generating returns from shareholders' equity. The equity ratio remains stable, reflecting a reasonable portion of assets funded by equity.

Cash Flow

Velo3D's cash flow statement reveals negative free cash flow with a deteriorating trend, raising concerns about cash reserves and the company's ability to finance operations without external funding. The operating cash flow to net income ratio is negative, underscoring difficulties in converting sales into cash flow.

Breakdown	TTM	Dec 2021
Income Statement
Total Revenue	0.00	0.00
Gross Profit	0.00	0.00
EBITDA	7.67M	10.27M
Net Income	12.11M	10.20M
Balance Sheet
Total Assets	231.66M	231.57K
Cash, Cash Equivalents and Short-Term Investments	363.32K	―
Total Debt	0.00	0.00
Total Liabilities	9.92M	14.95K
Stockholders Equity	-8.83M	―
Cash Flow
Free Cash Flow	-1.19M	-375.88K
Operating Cash Flow	-1.19M	-375.88K
Investing Cash Flow	-229.79M	-230.00M
Financing Cash Flow	231.51M	231.51M

Velo3D Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: ―
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VELO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 5.93, equal to the 50-day MA of 6.89, and equal to the 200-day MA of 10.19, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 24.89 is Positive, neither overbought nor oversold. The STOCH value of 21.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VELO.

Velo3D Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDD	53 Neutral	$268.05M	―	-46.51%	―	-9.11%	58.95%
Sector *	50 Neutral	AU$1.66B	0.92	3.91%	3.36%	15.75%	-4.41%
SSYS	50 Neutral	$783.27M	―	-11.22%	―	-6.00%	17.87%
MKFG	49 Neutral		―		―	-9.27%	19.30%
NNDM	48 Neutral	$299.85M	―	-9.62%	―	7.35%	16.59%
VUZI	43 Neutral	$153.91M	―	-113.13%	―	-12.75%	57.64%
VELO	38 Underperform	$83.00M	―		―	-5.66%	78.51%

Velo3D Corporate Events

Velo3D’s Major Restructuring and Leadership Changes

Velo3D announced a significant debt-for-equity exchange transaction with Arrayed Notes Acquisition Corp., resulting in the cancellation of approximately $22.4 million in senior secured notes. This transaction significantly reduces Velo3D’s debt, with Arrayed Notes Acquisition Corp. holding 95% of the company’s common stock. Following the exchange, Arun Jeldi, CEO of Arrayed Additive Inc., will become Velo3D’s CEO, leading the company into a new growth chapter. As part of the restructuring, several board members resigned, and the board was reduced to five members, with Brad Kreger assuming the role of Chief Operating Officer.

More about Velo3D

Velo3D is a leader in scalable metal 3D printing technology, focusing on innovative solutions for industries such as space exploration, aviation, energy, and semiconductors. The company’s integrated ecosystem includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system, enabling customers to manufacture complex, mission-critical metal parts.

YTD Price Performance: -95.83%

Average Trading Volume: 62,752

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $5.58M