Stratasys Ltd. (NASDAQ: SSYS)

Sector: Technology Industry: Computer Hardware CIK: 0001517396
Market Cap 682.48 Mn
P/B 0.80
P/E -5.36
P/S 1.22
ROIC (Qtr) -6.83
Div Yield % 0.00
Rev 1y % (Qtr) -2.17
Total Debt (Qtr) 31.09 Mn
Debt/Equity (Qtr) 0.04

About

Stratasys Ltd., a prominent player in the additive manufacturing industry, is recognized by its ticker symbol SSYS. The company is renowned for its polymer-based 3D printing solutions, which it delivers to a diverse clientele across various industries worldwide. Stratasys' business operations span multiple sectors, including aerospace, automotive, consumer goods, education, healthcare, and industrial sectors. The company's primary revenue generation stems from the sale of 3D printing systems, consumables, software, and services. Stratasys' product...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 17.73M provides robust 0.57x coverage of total debt 31.09M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 71.47M provide 9.81x coverage of short-term debt 7.28M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 884.43M provides 28.44x coverage of total debt 31.09M, indicating robust asset backing and low credit risk.
  • Tangible assets of 884.43M provide exceptional 18.21x coverage of deferred revenue 48.56M, showing strong service capability backing.
  • Short-term investments of 183.50M provide solid 1.56x coverage of other current liabilities 117.72M, indicating strong liquidity.

Bear case

  • Operating cash flow of 17.73M barely covers its investment activities of (128.08M), with a coverage ratio of -0.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (128.08M) provide weak support for R&D spending of 84.06M, which is -1.52x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 17.73M provides insufficient coverage of deferred revenue obligations of 48.56M, which is 0.37x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 17.73M shows concerning coverage of stock compensation expenses of 21.04M, with a 0.84 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.97M) provides weak coverage of capital expenditures of 19.69M, with a -0.10 ratio suggesting additional external financing needs for growth initiatives.

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 0.59 2.06
EV to Cash from Ops. EV/CFO 36.24 -0.65
EV to Debt EV to Debt 20.66 56.37
EV to EBIT EV/EBIT -4.86 2.89
EV to EBITDA EV/EBITDA -33.59 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF -326.80 -7.44
EV to Market Cap EV to Market Cap 0.94 7.64
EV to Revenue EV/Rev 1.14 78.30
Price to Book Value [P/B] P/B 0.80 -28.73
Price to Earnings [P/E] P/E -5.36 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) 17.43 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -72.70 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.75 867.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -41.17 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.41 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.74 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) -38.04 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) -23.66 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) 89.49 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.43 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.43 7.26
Current Ratio Curr Ratio (Qtr) 3.65 13.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -3.57
Interest Cover Ratio Int Coverage (Qtr) 17.43 -105.42
Times Interest Earned Times Interest Earned (Qtr) 17.43 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -16.00 -629.92
EBIT Margin % EBIT Margin % (Qtr) -23.56 -683.67
EBT Margin % EBT Margin % (Qtr) -22.21 -687.58
Gross Margin % Gross Margin % (Qtr) 43.70 34.79
Net Profit Margin % Net Margin % (Qtr) -22.70 -692.43