Once again we take a look at the valuations of the major 3D printing companies over the past week.
Publicly traded companies are required to post their financial reports, as well as appear on stock markets. From there we can calculate the total value of their company by multiplying the current stock price by the number of outstanding shares. This number is the market capitalization, and represents the current valuation of the company.
It’s a great number of compare companies, as the market capitalization can be leveraged to provide more capabilities for the company. Shares could, for example, be used as collateral for a loan. That and similar maneuvers could generate cash with which the company might undertake new projects.
In other words, “market cap”, as it is known, is quite important.
You might think it’s not important to monitor these companies each week, as their value is realized only when stocks are sold. However, events happen to companies occasionally that cause their value to rise and fall, and this weekly post is where we track such things.
Note that our list here does not include all major 3D print companies. Not all 3D print companies are publicly traded, and thus we cannot officially know their true size, such as EOS. Others, like HP or Siemens, have very large 3D printing divisions, but are part a much larger enterprises and we cannot know the true size of their 3D printing activities.
Let’s take a look at the 3D printing companies on this week’s list.
3D Printing Leaderboard
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This week saw rather poor results in the general market, with most exchanges down around three percent, which is a significant amount. Most of that loss occurred on the last day of the week, Friday, due to multiple factors.
Typically, the 3D print leaderboard valuations are strongly affected by overall market trends, with usually huge exaggerations of the general trends. However, somehow that was not the case this week, as the leaderboard dipped four percent, instead of the ten I was expecting to see.
While most companies suffered slight losses in value, two companies actually gained.
First place Xometry managed to grow almost one percent in value this week. As usual, there was no news to cause this to occur this week. However, it again appears that general investors are now noticing the company’s announcement of quarterly results from way back on August 10th. At that time the results were significant, as they reported 89% year-over-year revenue increases.
There is definitely a two-four week lag between announcements and market reaction in the companies we track.
The other company that gained this week was none other than Desktop Metal, which grew a very healthy four percent. What news drove this trend that bucked the market by eight percent? Was it their announcement this week about a new and important partnership with Henckel to provide advanced materials for Desktop Metal’s massive Xtreme 8K 3D printer? I think not. I do think it has everything to do with Desktop Metal’s August 8th announcement of second quarter results where they reported a 204% revenue increase over 2021.
Funny how both of these increases seem to be caused by lagging reaction to financial results, isn’t it?
The company with the biggest valuation loss this week turned out to be Markforged, with a drop slightly more than ten percent. Could this company’s downward shift have a different pattern than that of Desktop Metal’s and Xometry’s rise?
Nope. Markforged announced quarterly results on August 11th, and they weren’t nearly as good as the other two companies. Markforged’s revenue rose a mere 19% over 2021, apparently causing investors to lower their price.
A company set to appear was Essentium, who announced plans to use a SPAC-merger to launch on NASDAQ. However, that deal has been suspended so we’re wondering what the company’s next steps might be.
One company I’ve started to watch is ICON, the Texas-based construction 3D printer manufacturer. This privately-held company has been raising a significant amount of investment to the tune of almost half a billion dollars. At that level it is likely they will be discussing a transition to public markets at some point, which would certainly place them at or near the top of our leaderboard.
Another company that would seem logical to go public is VulcanForms, a manufacturing service using an advanced metal 3D printing process. They are currently privately valued at over US$1B, and going public could cause that to go even higher.
Others In The Industry
While we’ve been following the public companies, don’t forget there are a number of private companies that don’t appear on any stock exchange. These privately-held companies likely have significant value, it’s just that we can’t know exactly what it is at any moment. The suspected bigger companies include EOS, Carbon and Formlabs.
Perhaps someday some of them will appear on our major players list.
Finally, there are a number of companies that are deeply engaged in the 3D print industry, but that activity is only a small slice of their operations. Thus it’s not fair to place them on the lists above because we don’t really know where their true 3D print activities lie.