Why 3D Systems (DDD) Stock Is Gaining Today

NEW YORK (TheStreet) --Shares of 3D Systems Corp. (DDD) are higher by 2.45% to $52.70 on Wednesday morning, after the company announced that, along with SME, it has created an advisory board for its collaborative M.Lab21 Initiative.

The M.Lab21 Initiative is a program started to enhance high school shop and vocational education classes with 3D equipment, technologies, and a curriculum designed to develop students' interest in pursuing a career in manufacturing. 

The 3D printing company said this project "will revolutionize high school industrial arts, career and technical education. Through the formation of this influential advisory board, 3DS and SME will create an integrated ecosystem of hardware, software and training programs that, together, can foster a new digital literacy and empower the next generation with digital craftsmanship skills."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The board includes members from Intel (INTC) , General Electric (GE) , Deloitte, Johnson Controls (JCI) , and NIST.

Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate 3D SYSTEMS CORP (DDD) 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year."

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

  • The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 25.4%. 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.
  • DDD's debt-to-equity ratio is very low at 0.01 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 5.55, which clearly demonstrates the ability to cover short-term cash needs.
  • 47.83% is the gross profit margin for 3D SYSTEMS CORP which we consider to be strong. Regardless of DDD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DDD's net profit margin of 1.40% is significantly lower than 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 77.3% when compared to the same quarter one year ago, falling from $9.34 million to $2.13 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, 3D SYSTEMS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: DDD Ratings Report

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