These Four 3D Printing Stocks are Making Fresh Gains

NEW YORK (TheStreet) -- 3D printing companies proved popular on Monday as 3D Systems (DDD), Stratasys (SSYS), ExOne (XONE) and Voxeljet (VJET) made fresh gains.

Small-cap Voxeljet led the group, gaining 14% to $51.12 followed by industry-heavyweight 3D Systems which jumped 8.7% to $76.49. Stratasys, owner of MakerBot Industries, gained 7.1% to $127.46 and ExOne rounded up the bunch, climbing 3% to $60.07.

3D printing has been a hot commodity on markets through 2013. Year to date, 3D Systems, Stratasys and ExOne are up 115%, 59.1% and 126.2%, respectively. Since its IPO on Oct. 18, Voxeljet has soared 52.9%.

On Friday, the industry rallied as 3D Systems announced the launch of its affordable, consumer-focused 3D scanner Sense. Moderately-priced at $399 compared to $1,400 for Stratasys' Digitizer, Sense gave a glimpse of how the emerging technology can be marketed to the average consumer.

TheStreet Ratings team rates 3D Systems Corp as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate 3D Systems Corp (DDD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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

  • The revenue growth greatly exceeded the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 49.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DDD's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.40, which clearly demonstrates the ability to cover short-term cash needs.
  • 3D Systems Corp has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, 3D Systems Corp increased its bottom line by earning 47 cents a share vs. 47 cents a share in the prior year. This year, the market expects an improvement in earnings (97 cents vs. 47 cents).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Computers & Peripherals industry average. The net income increased by 30.6% when compared to the same quarter one year prior, rising from $13.52 million to $17.66 million.
  • Net operating cash flow has increased to $31.64 million or 39.8% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.99%.

TheStreet Ratings team rates Stratasys Ltd as a Hold with a ratings score of C+. The team has this to say about their recommendation:

"We rate Stratasys (SSYS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

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

  • SSYS's very impressive revenue growth greatly exceeded the industry average of 2.9%. Since the same quarter one year prior, revenues leaped by 152.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SSYS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.94, which clearly demonstrates the ability to cover short-term cash needs.
  • 48.28% is the gross profit margin for Stratasys which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, SSYS's net profit margin of -5.27% significantly underperformed when compared to the industry average.
  • 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 Computers & Peripherals industry. The net income has significantly decreased by 227.8% when compared to the same quarter one year ago, falling from $5.18 million to -$6.63 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, Stratasys' return on equity significantly trails that of both the industry average and the S&P 500.

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