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3D printer investment companies
Top 3D Printing Stocks
Table of Contents
Table of Contents
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Best Value 3D Printing Stocks
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Fastest Growing 3D Printing Stocks
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3D Printing Stocks With the Best Performance
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Trends in 3D Printing Sector
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Advantages of 3D Printing Stocks
SSYS is top for value and performance and NNDM is top for growth
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Noah Bolton
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Noah has about a year of freelance writing experience. He's worked on his investing website dealing with topics such as the stock market and financial advice for beginners.
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Updated October 06, 2022
The 3D printing industry is made up of companies that provide products and services capable of manufacturing a range of products. 3D printing, also known as additive manufacturing, creates physical objects from digital designs. The printing process works by laying down thin layers of material in the form of liquid or powdered plastic, metal, or cement, and then fusing the layers together. Though still too slow for mass production, it is a revolutionary technology that has the potential to disrupt the manufacturing logistics and inventory management industries. The 3D printing industry is comprised of only a handful of companies, including players such as Proto Labs Inc., Faro Technologies Inc., and Desktop Metal Inc.
The industry is so young that it has no meaningful benchmark index. But the performance of these stocks can be compared to the broader market as represented by the Russell 1000 Index. These stocks have not performed well. Stratasys Ltd. (SSYS), the best performing 3D printing stock, has dramatically underperformed the Russell 1000, which has provided a total return of -12.5% over the past 12 months. This market performance number and all statistics in the tables below are as of Sept. 20, 2022.
Here are the top three 3D printing stocks with the best value, fastest sales growth, and the best performance.
These are the 3D printing stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in early stages of development or industries suffering from major shocks, this metric can be substituted as a rough measure of a business's value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability. The price-to-sales ratio shows how much you're paying for the stock for each dollar of sales generated.
| Best Value 3D Printing Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing P/S Ratio | |
| Stratasys Ltd. (SSYS) | 15.49 | 1.0 | 1.6 |
| 3D Systems Corp. (DDD) | 9. 00 | 1.2 | 2.0 |
| Proto Labs Inc. (PRLB) | 37.49 | 1.0 | 2.1 |
Source: YCharts
- Stratasys Ltd.: Stratasys offers 3D printing solutions, such as 3D printers, polymer materials, a software ecosystem, and related parts. It serves a variety of industries, including aerospace, automotive, consumer products, and healthcare. On Sept. 13, Stratasys completed the merger of its MakerBot subsidiary with Ultimaker, which offers platforms used to make 3-D printers. Ultimaker is backed by NPM Capital. The merged company will keep the Ultimaker name and focus on providing solutions, hardware, software and materials to the industry. NPM Capital will have majority ownership of the new company at 53.5%, and Stratasys will own 46.5%.
- 3D Systems Corp.: 3D Systems provides 3D printing solutions. The company offers a range of hardware, software, and materials designed for additive manufacturing.
Its products and services are used in a variety of industries and sectors, including aerospace, automotive, semiconductor, healthcare, and more. - Proto Labs Inc.: Proto Labs is an e-commerce-based company that provides digital manufacturing services. It offers 3D printing, injection molding, CNC machining, and sheet metal fabrication. On Aug. 5, Proto Labs announced financial results for Q2 2022, the three-month period ending on June 30, 2022. Net income fell more than 80% to $2.6 million from the prior-year quarter while revenue rose 3.1%.
These are the 3D printing stocks with the highest YOY sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share.
However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
| Fastest Growing 3D Printing Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | Revenue Growth (%) | |
| Nano Dimension Ltd. (NNDM) | 2.45 | 0.6 | 1,270 |
| Desktop Metal Inc. (DM) | 3.07 | 1.0 | 203.9 |
| Stratasys Ltd. (SSYS) | 15.49 | 1.0 | 13.3 |
Source: YCharts
- Nano Dimension Ltd.: Nano Dimension is an Israel-based 3D printing company focused on developing equipment and software for 3D-printed electronics. It develops printers for multilayer printed circuit boards and nanotechnology-based inks.
The company serves a range of industries, including consumer electronics, healthcare, aerospace, and automotive. On Sept. 1, Nano Dimension released Q2 2022 results. The company's net loss widened sharply to $40.0 million from a loss of $13.6 million in the same quarter a year earlier even as revenue soared more than 13-fold. The larger second-quarter loss was fueled partly by $10.9 million in non-cash adjustments for depreciation and amortization expenses, and share-based payments. - Desktop Metal Inc.: Desktop Metal manufactures 3D printers and related equipment used to build complex parts from metal. It also offers 3D printing software. The company serves a range of industries, including automotive, consumer products, education, and heavy industry. On Aug. 08, the company reported Q2 2022 results. Desktop Metals' net loss increase nearly seven-fold to $297.3 million compared to the same quarter a year earlier even as revenue tripled.
- Stratasys Ltd.
: See above for company description.
These are the 3D printing stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
| 3D Printing Stocks With the Best Performance | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Stratasys Ltd. (SSYS) | 15.49 | 1.0 | -34.5 |
| Proto Labs Inc. (PRLB) | 37.49 | 1.0 | -50.6 |
| Materialise NV (MTLS) | 10.95 | 0.6 | -53.9 |
| Russell 1000 | N/A | N/A | -12.5 |
Source: YCharts
- Stratasys Ltd.: See above for company description.
- Proto Labs Inc.: See above for company description.
- Materialise NV: Materialise is a Belgium-based provider of additive manufacturing software and 3D printing services. It serves a range of industries, including healthcare, aerospace, and automotive. On Sept. 7, Materialise completed its acquisition of Identity3D, which makes products that encrypt, distribute, and track digital parts as they move through supply-chains. The value of the deal was not specified in the announcement.
Trends in 3D Printing Sector
The 3D printing industry is a young one, and companies are still jockeying for market share or facing consolidation risks. Nonetheless, 3D printing has significant potential to impact a host of other industries. 3D printing businesses may be crucial in helping other companies maximize production efficiencies in an effort to reduce environmental impact out of a concern for climate change, for example. 3D printing can be used to create personalized products in the healthcare or therapeutics spaces.
This technology can also be used to facilitate a faster turnaround for the creation of new models of existing products in industries such as the automotive space.
Advantages of 3D Printing Stocks
3D printing technology has the benefit of being a relatively new technology which has potential applications across a range of fields. This is one reason why the 3D printing market is expected to roughly triple in size to $44.5 billion by 2026. This versatility provides a significant benefit to 3D printing stocks within an investment portfolio. Another advantage of 3D printing technology is that it may have the potential to alleviate some of the impact of supply chain constraints. Given the ongoing supply chain crisis which has impacted a host of industries, there is an opportunity for 3D printing companies to provide a critical service.
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy.
Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
YCharts. "Financial Data.
"Stratasys Ltd. "Stratasys Completes Merger of MakerBot with Ultimaker."
Proto Labs Inc. "Proto Labs Q2 2022 Earnings Release."
Nano Dimension Ltd. "Earnings Press Release for Q2 2022."
Desktop Metals Inc. " Desktop Metals Second Quarter 2022 Earnings."
Materialise NV. "Materialise Acquires Indenity3D."
3D Natives. "What Were the 3D Printing Trends in 2021?"
Fast Company. "Four 3D printing trends to look for in 2022."
Hubs. "3D printing trend report 2022."
Five 3D Printing Stocks to Consider in 2023
Image source: Getty Images.
Back in the early 2010s, stocks were booming for 3D printing -- also known as additive manufacturing, a computer-controlled process in which three-dimensional objects are made. But the boom was followed by a bust as many pure-play 3D printing companies didn't immediately deliver on lofty expectations.
Rumors of the manufacturing technology's demise are clearly premature. These days, 3D printing is a high-growth niche that is steadily reshaping the manufacturing and industrial sectors. Some estimates point to a doubling in annual revenue from additive manufacturing between 2022 and 2026. Even growth investor Cathie Wood has launched a fund focused on manufacturing tech, The 3D Printing ETF (NYSEMKT:PRNT), via her company ARK Invest.
Here's what you need to know about 3D printing and additive manufacturing stocks for 2023:
Investing in 3D printing stocks in 2023
The manufacturing of products in all corners of the economy is being revolutionized by 3D printing, from healthcare equipment to metal fabrication to housing construction. It's invading so many sectors that tech giants such as Microsoft (NASDAQ:MSFT), Autodesk (NASDAQ:ADSK), and HP (NYSE:HPQ) have launched products aimed at 3D printing and additive manufacturing.
Other engineering and software outfits such as Dassault Systemes (OTC:DASTY), ANSYS (NASDAQ:ANSS), and Trimble (NASDAQ:TRMB) have also gotten involved in 3D printing technology.
Here are five key players to consider for 2023 that are a more focused bet on 3D printing:
| Company | Market Cap | Description |
|---|---|---|
| Desktop Metal (NYSE:DM) | $584.3 million | Recent IPO that focuses on metal fabrication technology. |
| Stratasys (NASDAQ:SSYS) | $924.3 million | One of the original 3D printing pioneers, with a wide array of printers and supporting design software. |
| Xometry (NASDAQ:XMTR) | $1.3 billion | A manufacturing marketplace, including access to on-demand 3D printing services. |
| 3D Systems (NYSE:DDD) | $1.2 billion | Another original 3D printing pioneer and the largest pure-play stock on 3D printing technology. |
| PTC (NASDAQ:PTC) | $15.4 billion | A manufacturing technology provider with a suite of software and related services for industrial businesses. |
1. Desktop Metal
This company is a recent entry into the 3D printing space after going public via a SPAC at the end of 2020. The stock has been a terrible market underperformer since then, losing three-quarters of its value as of spring 2022. However, Desktop Metal could still be a promising investment for the long term.
As its name implies, Desktop Metal develops 3D printing hardware and accompanying design software for metal and carbon fiber parts. The company's smaller systems can handle prototyping and one-off parts, and larger printers are production grade-designed for manufacturing facilities.
Desktop Metal serves companies operating in automotive, consumer goods, and heavy industrial equipment businesses.
Despite a tenuous start as a public company, Desktop Metal was actually increasing revenue at a torrid triple-digit pace in 2021. Gross profit margins are thin, and the company generated a steep net loss, but that should improve over time as the business scales its operation. Desktop Metal also has several hundred million dollars in cash and investments to fund its expansion. It used some of these funds to acquire additive manufacturing peer ExOne at the end of 2021.
2. Stratasys
Stratasys was part of the early 2010s 3D printing stock boom and bust, but its business has endured. Sales took a dip early in the COVID-19 pandemic but are rebounding as the Israel-based company picks up new manufacturing contracts.
Stratasys serves a diverse set of customers, including aerospace and automotive parts manufacturers, medical and dental companies, and makers of basic consumer products.
In addition to a wide array of 3D printer models, Stratasys develops software to help users accelerate the time between design and final printing.
It isn't the highest-growth name on this list, but Stratasys is profitable (on a free cash flow basis) and has more than $500 million in cash and investments on its balance sheet, as well as no debt. Management thinks its payoff from years of research and development into additive manufacturing will accelerate in 2022.
3. Xometry
This is another newcomer to public markets. Xometry completed its initial public offering (IPO) over the summer of 2021, raising almost $350 million in cash in the process. As is often the case with new IPOs, the stock has underperformed since then. It has lost over half of its value from the time it started trading on public markets, but the business itself is rapidly growing.
Xometry is a marketplace for on-demand manufacturing of prototyping and mass production.
It has a network of more than 5,000 suppliers that companies can call on to meet their fabrication needs. Among the suppliers on the Xometry platform are 3D printing companies, injection molding, and automated machining. The company reported having more than 28,000 active buyers utilizing its platform at the end of 2021.
Although it isn't profitable yet, Xometry's unique approach to the 3D printing and additive manufacturing industry is growing fast. Like other names on this list, it has a sizable war chest of cash and short-term investments that it can spend on research and marketing as it tries to attract more suppliers and buyers to its marketplace.
4. 3D Systems
3D Systems was another early player in the 3D printing industry, and while it suffered through the boom-and-bust period of the early 2010s, its business has held steady for much of the past decade. After a brief dip during the early days of the pandemic, 3D Systems is back in growth mode.
The company develops printers and design software for all sorts of materials and industries (medical device makers, dental labs, semiconductor designers, aerospace, and automotive manufacturers). It claims leadership among independent 3D printing companies (as measured by sales). As the 3D printing industry expands in the coming years, 3D Systems thinks it will be able to attract lots of new business with its extensive experience and global reach.
As an established tech outfit in the manufacturing sector, 3D Systems offers investors the prospect of more stable growth, along with profitability. It also has a large net cash position from which it can consolidate its lead in 3D printers and software technology.
5. PTC
By far the largest company on this list, PTC is a longtime technology partner of manufacturing and industrial enterprises. Fast approaching $2 billion in annualized sales and highly profitable, PTC has all the tools needed to digitally transform industrial businesses.
Besides 3D printing computer-aided design software (ANSYS is a peer and software partner that also operates in this space), PTC specializes in augmented reality, industrial IoT (Internet of Things), and product life-cycle management software. Most of its revenue is subscription-based (including its Creo software that enables 3D printing), making for a stable and steadily growing business model that generates ample cash flow. PTC puts spare cash to work developing new products for its partners and makes bolt-on acquisitions of other software companies that enhance its overall portfolio.
As a larger company, PTC won't be the fastest-growing stock in the additive manufacturing and 3D printing space. However, the company has established itself as a leader in industrial technology and should be a primary beneficiary as the production of manufactured goods gets more efficient.
The future of 3D printing
Manufacturing technology is making inroads throughout the global economy by reducing the cost of production and localizing and speeding up the time it takes to deliver customer orders.
This is far from mere hype. Nevertheless, as is the case with all technology investments, progress won't go straight up. Expect twists and turns in these stocks as they develop new methods to design and make products.
If you decide to invest, do so in a measured way. Maintain a diversified portfolio, be wary of stocks benefiting from investor over-optimism, and always leave spare cash to invest more when there are inevitable dips. Given enough time -- years and decades -- investing in 3D printing could eventually provide a big payoff.
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Nicholas Rossolillo has positions in Autodesk. The Motley Fool has positions in and recommends Autodesk, HP, and Microsoft. The Motley Fool recommends 3d Systems, Ansys, Dassault Systèmes Se, PTC, and Trimble. The Motley Fool has a disclosure policy.
Investment idea: 3D Systems because 3D printing
Mikhail Gorodilov
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expected growth in demand in this area.
Growth potential and duration: 20.5% for 14 months; 54% over 4 years; 11% per year for 15 years.
Why stocks might go up: 3D printing has a great future.
How we act: we take shares now at $32.34.
When creating the material, sources were used that are inaccessible to users from the Russian Federation.
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Our thoughts are based on an analysis of the company's business and the personal experience of our investors, but remember: it is not a fact that an investment idea will work as we expect. Everything we write is forecasts and hypotheses, not a call to action. Rely on our thoughts or not - it's up to you.
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Therefore, we do not try to build complex models. The profit forecast in the article is the author's expectations. We indicate this forecast for reference: as with the investment idea as a whole, readers decide for themselves whether to trust the author and focus on the forecast or not.
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How the company earns
DDD makes 3D printers and provides services in this area. You can see what the company's printers look like on its website, but for the most part, these are printers for the corporate sector.
According to the annual report, the company's revenue is divided into the following segments.
Goods - 61.2%. A variety of printers: for plastic, for metal, for ceramics, and so on. Specialized software for scanning, design and virtual simulations for the medical sector. The segment's gross margin is 31.6% of its revenue.
Services - 38.8%. Technical support and training services for the company's clients. Production services for the company's customers - from prototyping to more complex projects. Specialized services for the medical sector: surgical planning, printing devices and instruments, building anatomical models, and more. The segment's gross margin is 52.
7% of its revenue.
The report lacks detail: it would be useful to know what types of printers the company has - ceramic or metal, how much revenue they generate, and what is the structure of revenue by customer type. We know that the company serves clients from almost every possible industry: everyone always needs to print something large.
Company revenue by country and region:
- Americas - 50.25%. The US accounts for 49.47% of the company's total revenue.
- Europe, Middle East and Africa - 38.34%.
- Asia Pacific - 11.41%.
The company is unprofitable.
Revenue and profit for the last 12 months in billions of dollars, total margin as a percentage of revenue. Source: MacrotrendsArguments in favor of the company
Dropped. The company's shares have fallen in price by 41.57% since February of this year: from $55.35 to $32.34. The fall was quite strong and perhaps we can pick up stocks in anticipation of a rebound.
Something about a fast growing market. DDD's target market for 3D printing and related solutions and products is expected to increase from $15 billion in 2021 to $37.2 billion in 2026. More recently, DDD acquired Volumetric Biotechnologies, a biomaterial printing company, perhaps from this, those who believe that soon the missing organs for transplantation can be mass-produced on printers will run into the DDD shares.
The company has not the largest capitalization - 4.05 billion dollars. It is possible that its shares will be easy to pump for retail investors because they read somewhere that "the sector is very promising."
Prose of the market. In general, the company has something to hope for without speculation. In the Proto Labs idea, we have already discussed the good prospects for companies related to R&D and small-scale production due to the expected increase in corporate sector investment around the world in the renewal of fixed assets.
And 3D printing is needed primarily for creating prototypes and a small number of parts.
DDD could also benefit from Biden's infrastructure package, which is about to become a reality. This will stimulate the industry and contribute to the demand for DDD solutions: it will increase the wear and tear of the equipment of manufacturing companies and increase their need to invest in the business.
Life has become better. In the latest report, DDD showed progress: the loss ratio of its business is declining - and profit may not be far off. This can attract investors from among banks and funds into shares.
Can buy. DDD has 35 years of additive manufacturing experience with solutions for all industries, from dentistry and surgery to jewelry and high-tech manufacturing. Given all of the above, it may well be bought by some large industrial conglomerate.
What can get in the way
Expensive. The company has a P/S of about 6.
55, which is not very low. And if we take into account the unprofitability of the company and the fact that its revenue has not been growing particularly actively in recent years, you can even decide that the company is expensive.
Unprofitable. The company has been on the market for a long time, but it has no profit. Loss will contribute to the volatility of these stocks. Yes, and there is always the possibility of bankruptcy, even taking into account the fact that DDD's accounting is quite accurate: it has enough money to close all urgent debts.
Not all at once. Waves of investor interest in the field of 3D printing periodically give way to disappointment when it suddenly turns out that not every individual user can print their own house yet.
3D printing technology is still quite raw and needs significant improvement: there are problems with a large number of defects, temperature control. So DDD will remain in the position of such a risky startup for some time to come, the technology of which has not yet been fully mastered.
This must be understood and accepted in order not to be surprised by the volatility of these stocks.
Hot time puts its test. The company has production and assets around the world, and more than half of its sales are made outside the United States. This means that logistical problems, as well as an increase in the cost of labor and raw materials, will be reflected in its reporting. Well, the permanent threat of a new quarantine must also be taken into account: as the experience of 2020 showed, the DDD business does not respond well to a decrease in industrial activity in the world.
As a result
Shares can be taken now at $32.34. And then there are three options:
- wait until shares are worth $39. I think we will reach this level in the next 14 months;
- wait until the stock is worth $50. Here, you may have to wait 4 years for 3D printing to become widespread;
- hold shares for 15 years to see the company become IBM from the world of 3D printing.
But still, it should be remembered that this idea is very volatile. So don't invest in these stocks unless you're ready for the storm.
Overview of 3D Printer Manufacturers
3D printing has been around since the late 1980s, but 2020 is a breakthrough year for the technology. The pandemic disrupted supply chains, and it was 3D printing that made it possible to quickly obtain the necessary items and spare parts, ranging from consumables for hospitals and clinics to parts for medical, industrial and other equipment.
The prospects and pace of development of the sector in recent years have significantly increased its investment attractiveness, however, there are certain risks that should not be discounted.
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Technology Brief
3D printing is the process of converting a computer-generated model into a real three-dimensional object.
Printing occurs due to the successive layering of thin layers of material. These are mainly thermoplastics of various types, but ceramic, biocompatible and other composite mixtures can also be used. That is why this technology is called additive.
3D printing technologies differ depending on the materials and equipment used, but the general scheme of the process is always the same:
- A virtual model of the object is created on the computer, and in order to make a model, you do not need to have 3D modeling skills. A special scanner photographs a real object from different angles, creating a digital copy of it.
- The program is slicing - splitting the model into many thin horizontal layers.
- The template is loaded onto the 3D printer, the device reads the diagram and prints it layer by layer in volumetric form.
Applications
With the help of a 3D printer, you can copy any object or create your own. The possibilities for additive printing are almost limitless.
Now the technology has already found application in various industries:
- health care: the creation of orthopedic orthoses, dentistry, transplantology, the manufacture of prostheses;
- industrial production: parts of machine tools and equipment;
- space, aviation and automotive industry;
- robotics;
- construction: models of buildings or individual structural elements;
- food production: figured chocolate, jellies and other desserts;
- household items: from smartphone cases and collectible figurines to shoes and interior items;
- jewelry.
At the moment, additive technologies are most in demand in medicine — 3D printing makes it possible to create consumables, prostheses, orthoses, mouth guards, and even absolutely accurate models of human organs — and in industrial production when creating parts and equipment elements.
But the scope of 3D printing is constantly expanding, opening up new opportunities for both large companies and small start-ups.
Industry Prospects
At the moment, 3D printing does not yet allow you to get fast and large-scale results, but the technology has proven itself in areas that require precision and uniqueness.
The increased availability of equipment and the absence of the need for long training of personnel to work with 3D printers also played a role. Over the past six years, the number of global and specific industries that use 3D printing technology has increased, and this market is truly limitless:
- large companies or organizations may refuse to purchase the necessary consumables or parts, producing them on their own in the volumes they need;
- the role of additive printing in medicine has already been mentioned above, and there are also broad development prospects here;
- 3D solutions lower the barrier to entry for new players.
Now, to launch your own production, there is no need to rent a room and purchase sophisticated equipment. For example, niches for creating custom car tuning parts, collectible figurines for computer game fans or unique gifts have just begun to open and have already begun to gain popularity.
In 2021, the additive printing market was worth $15 billion based on 3D printing and printer and component costs. In the coming years, the expert agency Business Insights predicts an annual growth of the segment by more than 24%. At this pace, by the beginning of 2029, the size of the 3D printing market will grow at least five and a half times.
Technology deficiencies and company risks
Despite the prospects for the development of 3D technologies, 3D printing cannot yet be unequivocally called a profitable industry. There are a number of difficulties that do not allow you to fully rely on additive technologies.
Still high cost of equipment. Cheap 3D printers can print small objects.
To create parts of large dimensions, it is necessary to purchase expensive equipment, which may turn out to be unprofitable.
Poor performance. This disadvantage should be considered in conjunction with the previous one: now the speed and cost of 3D printers do not allow them to be used in mass production, making a tangible profit.
Insufficient strength of manufactured parts. The layered structure is more brittle in the direction of the layers than the monolith and cannot withstand heavy loads.
Lack of stability. The use of additive technologies on an industrial scale requires equipment and materials that can provide higher production reliability. At the moment, 3D printing is most often used for prototyping, quality control, or for the production of single parts.
The need for post-processing , which increases the cost and time of production of each unit.
Unpredictability.
Additive manufacturing is constantly evolving, new materials and printer models are emerging, and there is always a risk that equipment that has been heavily invested in will suddenly become obsolete.
3D printing companies on the St. Petersburg Stock Exchange
There are quite a few companies associated with 3D printing on the St. Petersburg Stock Exchange, and it is not their main activity. This industry is so young that at the moment it does not even have a benchmark significant index.
But the global trend of increasing demand for additive technologies in various areas of life can open up new prospects for industry pioneers.
Proto Labs (NYSE: PRLB). Capitalization - 2.56 billion Proto Labs was founded in 1999 in Minnesota, and by 2022 it already has more than ten branches in seven countries of the world. The company specializes in the creation of prototypes and finished parts for individual orders. In this niche, Proto Labs is one of the largest and fastest manufacturers: it takes only a few days to create a part of any complexity.
Since 2014, Proto Labs has been using additive technology for manufacturing parts. In total, the company operates in four areas:
- Injection molding, revenue growth +4% year-on-year.
- CNC machining, +41%.
- 3D printing, +17%.
- Sheet metal production, +24%.
While 3D printing still only accounted for 14.8% of the company's revenue as of the end of 2021, the technology's growth trends may bring more tangible profits in the future.
Source: Tinkoff Investments Source: Tinkoff Investments3D Systems Corp (NYSE: DDD). Capitalization - 1.88 billion. The company was founded in 1986, headquarters - in Rock Hill, South Carolina.
3D Systems manufactures and sells equipment, software and materials for additive manufacturing. Most often, the company's products are used in the aerospace, automotive, semiconductor and healthcare industries.
In 2021, 3D Systems announced two separate acquisitions.
The company has agreed to acquire Titan Additive LLC, a developer and manufacturer of large-format industrial 3D printers, and Kumovis, a German provider of additive manufacturing solutions for personalized medical applications.
After the announcement of the results for the fourth quarter of 2021, the company's quotes increased by 15%. This positive reaction was driven by double-digit revenue growth of 13.1% yoy, excluding sales of part of the business. In addition, 3D Systems reduced its net loss by almost three times, and the revenue forecast for 2022 was increased by 10%.
Source: Tinkoff Investments Source: Tinkoff Investments Align Technology (NYSE: ALGN). Capitalization - 32.4 billion American company Align Technology is a manufacturer of medical equipment for dentistry and orthodontics. The patented Invisalign bite treatment system is based on the use of transparent removable orthodontic caps, which are printed on a 3D printer individually for each client.
The company is headquartered in Silicon Valley and has a rapidly growing branch network covering Russia, Mexico, Costa Rica, the Netherlands, Australia and Japan.
Digital orthodontics is rapidly evolving, and Align Technology is not going to give up just yet. The percentage structure of revenue for 2021 is distributed as follows: 80% - sales of Invisalign products, 20% - sales of intraoral scanners and other dental equipment.
Source: Tinkoff Investments Source: Tinkoff InvestmentsHP Inc. (NYSE: HPQ). Capitalization - 39.7 billion. The company does not specialize in the production of 3D printers, but is still one of the leaders in the additive printing market.
In 2014, HP developed Multi Jet Fusion 3D powder printing technology to lower the price and speed of industrial 3D printers, and two years later, the first HP Multi Jet Fusion models went on sale.
In 2017, Hewlett Packard introduced the world's first 3D lab for testing various types of additive printing raw materials.
And in 2018, it announced Metal Jet technology for 3D printing of industrial quality metal products.
HP Metal Jet Printer delivers 50 times the performance and significantly lower cost of finished parts than other technologies.
On April 7, 2022, investors were shocked by the news that Warren Buffett had bought $4.2 billion worth of shares in the company. Immediately after the announcement of the deal, HP shares grew by 14.75%.
Compare companies by multiples, growth rates, and R&D spending.
Source: Tinkoff Investments Source: Tinkoff InvestmentsCompany multiples
| Capitalization, billion dollars | P/E | Forecast P/E | P/S | Debt to equity | |
|---|---|---|---|---|---|
| PRLB | 2.56 | 38.00 | 28.00 | 2.81 | 0.01 |
| ALGN | 32.40 | 41.00 | 32.00 | 8.18 | 0.04 |
| DDD | 1. 88 | 5.30 | 5.00 | 2.88 | 0.60 |
| HPQ | 39.70 | 6.80 | 8.70 | 0.69 | −3.58 |
Capitalization, billion dollars
PRLB
2.56
ALGN
32.4
DDD 9008
0002 HPQ39,7,000
Algn
32
HPQ
8.7
PRLB
2.81
Algn
8,18
DDD
2.88
HPQ
0.69 9000
11 DEBT TO equity
PRLB
0.01
Algn
0.04
DDD
3%) 2019
458 (+2.69%)
2020
434 (−5.24%)
200003
488 (+12.44%)
2019 9000
2406 (+22 %)
2020
2471 (+3%)
2021
3952 (+60%)
2019
636 (−8%)
2020
557 (−12%)
2021
615 (+10.4%)
2019
58 760 (+1.3%)
2020
56 630 (−3.62%)
2021
63 000 (+11.25%) 9000
2019
63
2020
50
2021
35
2019
442
2020
1775
2021
772
2019
−69
2020
−149
2021
322
2019
3152
2020
2884
2021
6503
R&D costs, as a percentage of revenue
| 2019 | 2020 | 2021 | |
|---|---|---|---|
| PRLB | 7. 2% | 8.5% | 9.0% |
| ALGN | 6.5% | 7.1% | 6.3% |
| DDD | 13.1% | 13.3% | 11.2% |
| HPQ | 2.6% | 2.6% | 3.0% |
2019
7.2
2020
8.5
2019
6.5
20200003
7.1
2021
6.3
2019
13.1
2020
13.3
2021
11,2,2
2019
9000
2020 9000 9000
2.6
Summarizing the data, several conclusions can be drawn:
- All companies are profitable, with the exception of DDD, which received a one-time profit in 2021 through the sale of non-core assets.
- ALGN and PRLB have the lowest leverage.
- All companies are growing.
- DDD has the highest R&D spending and the lowest revenue growth rate. Investors should pay attention to this.
Bottom line
Modern 3D printers can significantly reduce the time and cost of solving geometry control and reverse engineering problems in the automotive, aviation, mechanical engineering, shipbuilding, jewelry and medicine industries.
