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
This week saw virtually no change in the overall total of the leaderboard, but several companies shifted notably, in both upward and downward directions.
Velo3D is clearly the winner of the week, as their valuation rose an amazing 23%, placing them into second spot on our leaderboard, replacing Xometry. The company reported excellent financial results on March 2, where they exceeded their revenue forecast by 20%, growing in 2021 by 45% more than their 2020 total revenue. Their system shipments grew by 77%, and their latest machine, the Sapphire XC now has a massive 18 unit backlog of orders.
All that news has gradually soaked into the investment community, which has seen the company’s stock price rise since this information was released. You can see the curve here:
What’s even more interesting is that this delay-response pattern seems to occur frequently in the 3D print space. It seems to me that if one were to carefully watch company financial announcements, it might be possible to get in on a likely-to-rise company before the majority of the market notices.
On the other side of the ledger we have Xometry, previously in second place on the leaderboard. The company’s latest financial statement indicated an earnings per share of negative US$0.53, which was US$0.18 worse than forecast. Although the company’s revenue grew in the report, investors had based their previous valuation on the forecast, which was invalidated. Thus, Xometry’s value dropped by almost 13% this week, dropping them down to fourth place on the leaderboard.
We are still awaiting the appearance on the market of one more 3D print company: Fast Radius, a digital manufacturing cloud service that announced their intention to go public.
Another company set to appear in early 2022 is 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.
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, Formlabs and SLM Solutions.
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.