3D Systems Corp (NYSE: DDD)

Sector: Technology Industry: Computer Hardware CIK: 0000910638
Market Cap 231.43 Mn
P/B 1.05
P/E 14.75
P/S 0.59
ROIC (Qtr) -21.87
Div Yield % 0.00
Rev 1y % (Qtr) -19.21
Total Debt (Qtr) 181.82 Mn
Debt/Equity (Qtr) 0.82

About

3D Systems Corporation, also known as 3D Systems or DDD, is a prominent player in the provision of 3D printing and digital manufacturing solutions. The company's operations are divided into two main segments: Healthcare Solutions and Industrial Solutions, which serve a diverse range of industries such as healthcare, aerospace, defense, transportation, and general manufacturing. 3D Systems' primary business activities involve the sale of 3D printers, materials, software, and services. The company's 3D printers are capable of transforming digital...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 95.54M provide 8.10x coverage of short-term debt 11.79M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 522.30M provides 2.87x coverage of total debt 181.82M, indicating robust asset backing and low credit risk.
  • Tangible assets of 522.30M provide exceptional 20.45x coverage of deferred revenue 25.54M, showing strong service capability backing.
  • Cash position of 95.54M provides exceptional 379.13x coverage of minority interest expenses 252000, indicating strong liquidity.
  • Tangible assets of 522.30M provide robust 6.42x coverage of other current liabilities 81.38M, indicating strong asset backing.

Bear case

  • Operating cash flow of (80.91M) barely covers its investment activities of 102.40M, with a coverage ratio of -0.79, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 102.40M provide weak support for R&D spending of 73.29M, which is 1.40x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 95.54M provide limited coverage of acquisition spending of 115.45M, which is 0.83x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (80.91M) provides insufficient coverage of deferred revenue obligations of 25.54M, which is -3.17x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (80.91M) shows concerning coverage of stock compensation expenses of 2.92M, with a -27.68 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 164.72 Bn 49.07 19.50 0.00 Bn
2 DELL Dell Technologies Inc. 86.37 Bn 16.20 0.83 31.24 Bn
3 WDC Western Digital Corp 60.34 Bn 23.73 5.03 4.68 Bn
4 STX Seagate Technology Holdings plc 58.67 Bn 34.25 6.14 4.99 Bn
5 SNDK Sandisk Corp 34.41 Bn -19.78 4.42 1.35 Bn
6 PSTG Pure Storage, Inc. 21.84 Bn 167.52 6.27 0.23 Bn
7 HPQ Hp Inc 21.10 Bn 8.34 0.38 9.67 Bn
8 SMCI Super Micro Computer, Inc. 17.45 Bn 22.01 0.83 4.78 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.54 2.06
EV to Cash from Ops. EV/CFO -3.70 -0.65
EV to Debt EV to Debt 1.65 56.37
EV to EBIT EV/EBIT 9.00 2.89
EV to EBITDA EV/EBITDA -4.09 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF -3.18 -7.44
EV to Market Cap EV to Market Cap 1.29 7.64
EV to Revenue EV/Rev 0.76 78.30
Price to Book Value [P/B] P/B 1.05 -28.73
Price to Earnings [P/E] P/E 14.75 6.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.30
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.93
Interest Coverage Int. cover (Qtr) 8.70 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 21.59 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -49.72 867.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 103.46 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 86.20 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 106.45 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) 105.68 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) 103.05 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) -49.81 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -23.59 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.71 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.72 7.26
Current Ratio Curr Ratio (Qtr) 2.73 13.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.82 -3.57
Interest Cover Ratio Int Coverage (Qtr) 8.70 -105.42
Times Interest Earned Times Interest Earned (Qtr) 8.70 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.30 -629.92
EBIT Margin % EBIT Margin % (Qtr) 8.49 -683.67
EBT Margin % EBT Margin % (Qtr) 7.52 -687.58
Gross Margin % Gross Margin % (Qtr) 33.90 34.79
Net Profit Margin % Net Margin % (Qtr) 4.00 -692.43