Stratasys Ltd (SSYS, Financial) has recently seen a notable uptick in its stock performance, with a market capitalization now standing at $1.03 billion. The current price of $14.82 reflects a significant 12.70% gain over the past week and an even more impressive 20.88% gain over the past three months. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued, with a GF Value of $18.92, slightly down from the past GF Value of $18.94. This modest undervaluation has remained consistent over the past quarter, indicating a potential opportunity for investors.
Introduction to Stratasys Ltd
Stratasys Ltd operates within the hardware industry, specializing in 3D printing and additive manufacturing solutions. The company's innovative technologies, including its patented fused deposition modeling and PolyJet printing, allow for the direct production of prototypes and manufactured goods from 3D CAD files or other 3D content. Stratasys's business model encompasses the sale of 3D printing systems, related services, consumables, and additive manufacturing solutions. Its subsidiaries, MakerBot and Solidscape, are also key players in the printer manufacturing space. The company's revenue is generated through these diverse channels, positioning it as a leader in the 3D printing industry.
Assessing Stratasys's Profitability
Stratasys's profitability, as indicated by the Profitability Rank of 2/10, suggests challenges in this area. The company's Operating Margin stands at -14.54%, which, while not ideal, is better than 16.63% of 2,454 companies in the industry. Similarly, its ROE of -11.86% and ROA of -8.95% are better than 17.87% and 16.13% of industry peers, respectively. The ROIC of -11.76% also surpasses 15.49% of competitors. These figures suggest that while Stratasys is not leading the pack in profitability, it is not at the bottom either.
Growth Trajectory of Stratasys
The Growth Rank for Stratasys is also low at 2/10. The company has experienced a decline in its 3-Year Revenue Growth Rate per Share at -5.80% and a 5-Year Revenue Growth Rate per Share at -6.20%, which are, however, better than 23.57% and 22.54% of companies in the sector. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 6.88%, outperforming 60% of the industry. The 3-Year EPS without NRI Growth Rate is at a concerning -35.50%, yet it still surpasses 9.88% of industry peers. These mixed growth indicators highlight the company's potential for improvement and the challenges it faces.
Key Shareholders in Stratasys
Stratasys's shareholder base includes notable investment firms. PRIMECAP Management (Trades, Portfolio) holds the largest stake with 2,997,499 shares, accounting for 4.34% of the company. Catherine Wood (Trades, Portfolio) follows with 997,332 shares, representing 1.44%, and Baillie Gifford (Trades, Portfolio) owns 827,193 shares, making up 1.2% of Stratasys. These significant shareholders reflect confidence in the company's long-term prospects despite the current challenges.
Competitive Landscape
When compared to its competitors, Stratasys holds a stronger market capitalization than 3D Systems Corp (DDD, Financial) at $906.017 million, Nano Dimension Ltd (NNDM, Financial) at $587.767 million, and Canaan Inc (CAN, Financial) at $518.270 million. This indicates that Stratasys has a more substantial market presence within the 3D printing and additive manufacturing industry, which could be a factor in its recent stock performance.
Conclusion
In summary, Stratasys Ltd's recent stock performance has been impressive, with a 20.88% gain over the past three months. The company's valuation remains modestly undervalued according to the GF Value, suggesting potential for growth. While profitability remains a challenge, with a Profitability Rank of 2/10, the company's market position is strong when compared to its competitors. The significant stakes held by major shareholders such as PRIMECAP Management (Trades, Portfolio), Catherine Wood (Trades, Portfolio), and Baillie Gifford (Trades, Portfolio) demonstrate a level of investor confidence. Stratasys's growth prospects, as indicated by the Total Revenue Growth Rate (Future 3Y To 5Y Est), also provide a positive outlook for the future. Investors should consider these factors in the context of the industry to make informed decisions about Stratasys's potential as an investment opportunity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
