Materialise Nv (NASDAQ: MTLS)

Sector: Technology Industry: Software - Application CIK: 0001091223
Market Cap 341.94 Mn
P/B 1.16
P/E 61.31
P/S 1.00
ROIC (Qtr) 1.17
Div Yield % 0.00
Rev 1y % (Qtr) 19.98
Total Debt (Qtr) 75.62 Mn
Debt/Equity (Qtr) 0.26

About

Materialise NV, a prominent company in the additive manufacturing and medical software tools industry, is headquartered in Belgium and has been at the forefront of product development innovation for over three decades. Its primary business activities encompass software development, 3D printing, and engineering for 3D printing, forming the foundation of its business model that empowers customers to utilize additive manufacturing technology for producing complex or customized end-use parts. The company's software offerings cater to a diverse range...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 30.90M provides robust 0.41x coverage of total debt 75.62M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 155.32M provide 12.31x coverage of short-term debt 12.62M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 30.90M provides exceptional 2188.50x coverage of minority interest expenses 14117.65, showing strong core operations.
  • Operating cash flow of 30.90M provides strong 99.86x coverage of stock compensation 309411.76, indicating sustainable incentive practices.
  • Strong tangible asset base of 406.72M provides 5.38x coverage of total debt 75.62M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 30.90M barely covers its investment activities of (19.38M), with a coverage ratio of -1.59, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (19.38M) provide weak support for R&D spending of 59.89M, which is -0.32x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 30.90M provides insufficient coverage of deferred revenue obligations of 68.64M, which is 0.45x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 30.90M provides minimal -45.12x coverage of tax expenses of (684705.88), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High receivables of 52.82M relative to inventory of 18.44M (2.86 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Geographical areas [axis] Breakdown of Revenue (2023)

Products and services [axis] Breakdown of Revenue (2023)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.64 2.65
EV to Cash from Ops. EV/CFO 10.12 13.37
EV to Debt EV to Debt 4.14 57.69
EV to EBIT EV/EBIT 23.20 19.12
EV to EBITDA EV/EBITDA 9.75 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 29.53 14.69
EV to Market Cap EV to Market Cap 0.91 -92.28
EV to Revenue EV/Rev 0.91 4.60
Price to Book Value [P/B] P/B 1.16 4.26
Price to Earnings [P/E] P/E 61.31 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 1.57 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.65 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 20.34 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.30 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -7.35 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.83 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -59.18 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -50.17 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 57.17 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.63 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 0.58
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.46 3.75
Current Ratio Curr Ratio (Qtr) 2.37 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.26 0.17
Interest Cover Ratio Int Coverage (Qtr) 1.57 -52.32
Times Interest Earned Times Interest Earned (Qtr) 1.57 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.40 -100.06
EBIT Margin % EBIT Margin % (Qtr) 3.34 -164.24
EBT Margin % EBT Margin % (Qtr) 1.43 -116.94
Gross Margin % Gross Margin % (Qtr) 56.50 58.20
Net Profit Margin % Net Margin % (Qtr) 1.60 -121.65