Tag Archives: Proto Labs
President Obama called 3D printing revolutionary in his State of the Union address on Tuesday.
“A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything.”
On Wednesday, several 3D printing stocks jumped on this mention.
- ExOne Co. (NASDAQ:XONE) popped over 9% from Tuesday’s close
- 3D Systems Corp (NYSE:DDD) increased 4.8%
- Stratasys Ltd. (NASDAQ:SSYS) gained 2.7%
- Proto Labs Inc (NYSE:PRLB) was up over 28%
Above is a chart showing the growth of these 4 stocks over the last 6 months.
Shares of leading 3D printing public companies are up over the last 3 months. 3D Systems (NYSE:DDD) is up 19%, Proto Labs (NYSE:PRLB) is up 12% and Stratasys (NASDAQ:SSYS) is up 2%. The combined market cap of those 3 companies is now over $5 billion.
Compare the performance of these 3D printing stocks (up 9.5%) to the slight decline of the Dow Jones, S&P 500, and NASAQ indices. Even though 3D printing is currently at the top of the “hype cycle“, it looks like investors are being rewarded for their early support of the industry.
In this video, Motley Fool analyst Blake Bos discusses some of the key recent events for 3D Systems and Stratasys:
- 3D Systems fought allegations over accounting irregularity
- 3D Systems sued Form Labs on patent infringement
- Stratasys released 16 new non-metal materials
- Stratasys announced a new Objet 3D printer
Want to see all of the key 3D printing industry stats in one place? The team at HighTable.com has published this infographic below, with data from on3dprinting.com and Forbes.
Hewlett-Packard (NYSE:HPQ) has a $43 billion market cap and is the largest printer manufacturer in the world. But HP has not really embraced 3D printing yet and may need to make an acquisition to truly enter the market.
Seeking Alpha describes the current situation for HP:
In April 2010, HPQ signed a collaboration agreement with one of the 3D printer companies, Stratasys to create a 3D printer called DesignJet 3D. The retail price was over $17,000 when they first came out, and it doesn’t appear that HPQ is making a giant impact with this printer.
HPQ needs to come and buy either SSYS or 3D Systems. HPQ needs to play defense, by going on the offensive. It might not seem like it, but this is the same scenario as Eastman Kodak being the 800-pound gorilla in cameras and then falling behind when the time came for digital cameras. HPQ doesn’t want to miss out on this revolution. 3D printing is within 3-5 years of becoming affordable for the general public. 3D Systems has launched a personal 3D printer for as cheap as $1300. Moore’s Law is working in the 3D printing market as prices have drop 90% in the last 5 years and will continue to drop in the future.
Look at the relative stock price of HPQ vs the current 3D printing leaders (3D Systems, Stratasys, and Proto Labs). HP is down 39% while the 3D printing portfolio is up 112% over the last 12 months.
The market is still early. Will HP make a move this year or wait for the market to mature?
Via Seeking Alpha.
Gorilla photo by poplinre used under Creative Commons license.
There are a small number of public companies in the 3D printing industry today. The leading stocks are 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS), and Proto Labs (NYSE:PRLB). The chart above shows a 6-month comparison of this aggregate 3D printing portfolio vs. the S&P, Dow Jones, and NASDAQ. 3D printing names are up over 180%.
The 3D printing industry, also known as additive manufacturing and rapid prototyping, is at an inflection point.
Where to Invest?
For those looking to consider an investment in 3D printing stocks, Seeking Alpha’s analysis of the leading companies can be helpful.
First a reality check on the current state of the market.
Unfortunately the concept has limited commercial production capabilities and material challenges. Over time, these will naturally become less and less of a problem. For now though, several sectors such as aviation parts and medical devices can benefit greatly from the ability to RP. Not to mention, any wealthy person that wants to make their own iPhone case at home.
Then an analysis of each stock. Excerpts below:
3D Systems is leading the 3D printing market, but unfortunately investors missed the golden opportunity to buy back at the end of December when the stock still traded around $15. It now fetches over $30.
With a forward PE of 23, the stock trades roughly in line with the expected growth rate. While not cheap, it isn’t expensive and actually provides a solid earnings profile unlike most of the recent IPOs in the hot sectors of social media and cloud computing.
Stratasys provides another option in 3D printing, but the stock has likewise more than doubled since the lows back in October of last year. The company recently released the Mojo 3D Printer which is the market’s lowest-priced professional-grade complete 3D printing system priced at $9,900.
This stock trades at a richer valuation than 3D Systems with a forward PE of over 30. The company also only reported 30% revenue growth for Q112 while analysts only forecast 15% long term growth.
The recent announced merger with Objet is expected to launch Stratasys into a leadership position in the 3D Printing market. The combined company will rival the $1.5B market cap of 3D Systems along with the revenue size.
Proto Labs is an alternative investing option in 3D rapid prototyping and manufacturing short-runs of real parts. The company went public back in February, but the stock appears to have a similar pricey multiple as the 3D printing sector.
The company reported 34% revenue growth and a solid 25.5% operating margin. At a forward PE of 29, the company trades in the range of its long term growth rate. With revenue expectations of around $127M for 2012, the company remains relatively small.
Read the full analysis at Seeking Alpha.
Disclaimer: Please consult a financial advisor before making any investment decisions.