NEW YORK (TheStreet) -- ExOne Co. (XONE) - Get Report shares had coverage initiated coverage with a "hold" rating by analysts at Stifel Nicolaus (SF) - Get Report who made a valuation call on the 3-D printing company.

"Positives on ExOne include: significant revenue growth potential, with ExOne demonstrating above industry growth rates, margins poised for expansion, an increasing number of material offerings, exposure to the fast growing industrial market, a growing service business, and our view that the industrial market is on the verge of accelerating scale of orders (from 1-2 per customer to 10 plus)," said analysts.

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Separately, TheStreet Ratings team rates EXONE CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate EXONE CO (XONE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • EXONE CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 70.2% in earnings (-$0.80 versus -$0.47).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 316.5% when compared to the same quarter one year ago, falling from -$1.12 million to -$4.67 million.
  • The gross profit margin for EXONE CO is currently lower than what is desirable, coming in at 30.04%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -41.64% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$12.06 million or 193.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • You can view the full analysis from the report here: XONE Ratings Report

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