Nano Dimension Ltd. (NASDAQ: NNDM)

Sector: Technology Industry: Computer Hardware CIK: 0001643303
Market Cap 337.49 Mn
P/B 0.56
P/E -1.25
P/S 4.13
ROIC (Qtr) -17.23
Div Yield % 0.00
Rev 1y % (Qtr) 80.96
Total Debt (Qtr) 34.14 Mn
Debt/Equity (Qtr) 0.06

About

Nano Dimension Ltd. (NNDM) operates in the 3D printing industry, specifically focusing on additive manufacturing of electronics and precision applications. Established in Israel in 1960, the company has grown to become a prominent player in this field. Nano Dimension's primary business activities encompass the design, manufacture, and sale of 3D printing systems, materials, and software for the production of electronic and precision components. The company's product portfolio includes AME inkjet printers, micro additive manufacturing systems,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 299.36M provide 33.26x coverage of short-term debt 9M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (32.84M) provides exceptional 56.82x coverage of minority interest expenses (578000), showing strong core operations.
  • Strong tangible asset base of 636.11M provides 18.63x coverage of total debt 34.14M, indicating robust asset backing and low credit risk.
  • Tangible assets of 636.11M provide exceptional 40.65x coverage of deferred revenue 15.65M, showing strong service capability backing.
  • Operating cash flow of (32.84M) fully covers other non-current liabilities (1.42M) by 23.13x, showing strong long-term stability.

Bear case

  • Operating cash flow of (32.84M) barely covers its investment activities of 139.66M, with a coverage ratio of -0.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (32.84M) provides insufficient coverage of deferred revenue obligations of 15.65M, which is -2.10x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (32.84M) shows concerning coverage of stock compensation expenses of 7.95M, with a -4.13 ratio indicating potential earnings quality issues.
  • Free cash flow of (34.05M) provides weak coverage of capital expenditures of 1.21M, with a -28.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (32.84M) provides minimal -74.31x coverage of tax expenses of 442000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 0.27 2.06
EV to Cash from Ops. EV/CFO -5.76 -0.65
EV to Debt EV to Debt 5.54 56.37
EV to EBIT EV/EBIT -0.58 2.89
EV to EBITDA EV/EBITDA -1.85 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF -5.55 -7.44
EV to Market Cap EV to Market Cap 0.56 7.64
EV to Revenue EV/Rev 2.32 78.30
Price to Book Value [P/B] P/B 0.56 -28.73
Price to Earnings [P/E] P/E -1.25 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) 5.64 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 49.67 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 40.11 867.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -371.94 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -11.13 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -372.52 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) -196.11 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) -200.00 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) -216.48 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.48 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 6.02 7.26
Current Ratio Curr Ratio (Qtr) 11.70 13.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 -3.57
Interest Cover Ratio Int Coverage (Qtr) 5.64 -105.42
Times Interest Earned Times Interest Earned (Qtr) 5.64 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -384.80 -629.92
EBIT Margin % EBIT Margin % (Qtr) -400.36 -683.67
EBT Margin % EBT Margin % (Qtr) -329.43 -687.58
Gross Margin % Gross Margin % (Qtr) 31.60 34.79
Net Profit Margin % Net Margin % (Qtr) -330.00 -692.43