3D SYSTEMS CORP
April 12, 2015
NYSE: DDD
3D SYSTEMS CORP
BUY
A+
A
A-
HOLD
B+
B
Annual Dividend Rate
NA
B-
C+
C
Annual Dividend Yield
NA
SELL
C-
D+
D
D-
Beta
2.20
STOCK PERFORMANCE (%)
3 Mo.
Price Change
-11.83
E
E-
Market Capitalization
$3.2 Billion
Sector: Technology
DDD BUSINESS DESCRIPTION
3D Systems Corporation, through its subsidiaries,
operates as a provider of 3D printing centric
design-to-manufacturing solutions in the Americas,
Germany, and the Asia-Pacific, as well as other
European, the Middle East, and African countries.
E+
Weekly Price: (US$)
F
HOLD
52-Week Range
$26.29-$69.56
RATING SINCE
03/13/2014
Price as of 4/9/2015
$28.77
Source: S&P
SMA (50)
SMA (100)
1 Year
2 Years
100
90
80
70
60
1 Yr.
-47.39
3 Yr (Ann)
22.30
50
40
GROWTH (%)
Last Qtr
21.07
-86.19
-90.91
12 Mo.
27.31
-73.62
-75.00
3 Yr CAGR
41.56
-31.00
-38.23
RETURN ON EQUITY (%)
DDD
Q4 2014
0.90
Q4 2013
4.72
Q4 2012
8.10
Ind Avg
33.71
27.29
30.35
S&P 500
14.20
14.48
13.11
Revenues
Net Income
EPS
30
20
Rating History
BUY
HOLD
Volume in Millions
75
50
25
2013
2014
0
2015
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
P/E COMPARISON
261.55
DDD
17.90
20.44
Ind Avg
S&P 500
RECOMMENDATION
We rate 3D SYSTEMS CORP (DDD) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks. The company's strengths can
be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable
debt levels by most measures and good cash flow from operations. However, as a counter to these strengths,
we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net
income and disappointing return on equity.
HIGHLIGHTS
DDD's revenue growth trails the industry average of 31.9%. Since the same quarter one year prior, revenues
rose by 21.1%. This growth in revenue does not appear to have trickled down to the company's bottom line,
displayed by a decline in earnings per share.
2012
2013
Q3 0.03
Q4 0.01
DDD's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that
there has been very successful management of debt levels. Along with this, the company maintains a quick
ratio of 3.05, which clearly demonstrates the ability to cover short-term cash needs.
Q2 0.02
Q4 0.11
Q3 0.17
Q2 0.10
Q1 0.06
Q4 0.13
Q3 0.16
Q2 0.11
Q1 0.08
Q1 0.05
EPS ANALYSIS¹ ($)
2014
NA = not available NM = not meaningful
1 Compustat fiscal year convention is used for all fundamental
data items.
47.93% 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 0.82% is significantly lower than the industry average.
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.
Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the
last year: it has tumbled by 47.39%, worse than the S&P 500's performance. Consistent with the plunge in the
stock price, the company's earnings per share are down 90.90% compared to the year-earlier quarter.
Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap
and attractive. The reality is that, based on its current price in relation to its earnings, DDD is still more
expensive than most of the other companies in its industry.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: April 12, 2015
PAGE 1
April 12, 2015
NYSE: DDD
3D SYSTEMS CORP
Sector: Technology Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
PEER GROUP ANALYSIS
60%
V
FA
AB
OR
EFII
SNDK
STX
LOGI
NTAP
LE
AB
-60%
R
VO
FA
BBRY
5%
27.5%
EBITDA Margin (TTM)
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $2 Billion and $18 Billion.
Companies with NA or NM values do not appear.
*EBITDA – Earnings Before Interest, Taxes, Depreciation and
Amortization.
60%
REVENUE GROWTH AND EARNINGS YIELD
SSYS
V
FA
LXK
LE
EFII
AB
OR
DDD
NCR
SNDK
DBD
NTAP
LOGI STX
R
VO
FA
LE
AB
-60%
The US computers and peripherals industry is one of the largest global markets, including companies such as
Apple (AAPL), IBM (IBM), Dell (DELL) and Hewlett-Packard (HPQ). The industry is capital-intensive with highly
automated operations. Larger companies are built on purchasing power and mass production while smaller
firms concentrate on product specialty and superior technology.
Companies with excellent process technology, capital-intensive components production and flexible
high-volume assembly are expected to dominate the hardware value chain. Companies with patent capital,
close links to component and equipment developers and the ability to afford research and development
expenditures and capital investments will benefit the most in the future. These attributes play into the
strategic and technical strengths of Japanese companies. The US industry has superior design skills, but
remains largely fragmented, undercapitalized and lacks a long-term approach. However, some US companies
have been successful in producing structures, strategy and operational techniques necessary for
commercial success.
With the global economic recovery, the computers and peripherals industry is expected to thrive as
corporations continue to automate and upgrade their systems to increase efficiency and enhance
competitive positions. Major players in the sector derive a substantial portion of their revenues from foreign
markets adding geographic diversity to their product sales base. A weaker US dollar has given a pricing edge
to American products and services.
Companies have little room for errors or inefficiencies in such a competitive and economically volatile
environment. According to International Data Corp., price wars and technological evolution can drive down
prices by 25% a year.
Computer storage and peripherals are strong sellers as data storage continues to be a top priority across
businesses. Increasing amounts of data and content and the proliferation of broadband access have
necessitated greater capacity across the storage infrastructure.
PEER GROUP: Computers & Peripherals
UN
Revenue Growth (TTM)
Price as of 4/9/2015
$28.77
Research and development spending at large manufacturers generally varies between 5% and 15% of
product revenue and can be more for smaller companies and low for pure assemblers like Dell. Patent
licensing is a common practice as are disputes arising from patents. Technological advancement renders
products quickly outdated. Many products have a lifespan less than 18 months.
UN
Revenue Growth (TTM)
LE
DDD
LXK
52-Week Range
$26.29-$69.56
The computers and peripherals industry includes PC equipment, handheld devices, complex information
technology systems and network equipment. Technological factors such as interoperability of hardware
products and compatibility with the web have brought about industry consolidation. Also, intense competition
and the importance of intellectual property rights have been instrumental to growth.
SSYS
DBD
Market Capitalization
$3.2 Billion
INDUSTRY ANALYSIS
REVENUE GROWTH AND EBITDA MARGIN*
NCR
Beta
2.20
BBRY
-12.5%
12.5%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -51% and
54.8%. Companies with NA or NM values do not
appear.
Ticker
DDD
NCR
BBRY
SSYS
LXK
DBD
LOGI
EFII
STX
SNDK
NTAP
Recent
Company Name
Price ($)
3D SYSTEMS CORP
28.77
NCR CORP
31.00
BLACKBERRY LTD
9.53
STRATASYS LTD
56.78
LEXMARK INTL INC
42.86
DIEBOLD INC
35.99
LOGITECH INTERNATIONAL SA
13.87
ELECTRONICS FOR IMAGING INC 41.72
SEAGATE TECHNOLOGY PLC
54.69
SANDISK CORP
70.41
NETAPP INC
35.74
Market
Cap ($M)
3,216
5,229
5,039
2,891
2,626
2,333
2,278
1,956
17,957
14,998
11,142
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Price/
Earnings
261.55
29.25
NM
NM
34.85
20.45
17.78
59.60
9.07
16.65
18.71
Net Sales
TTM ($M)
653.65
6,591.00
3,335.00
750.13
3,727.60
3,051.05
2,137.04
790.43
14,188.00
6,627.70
6,232.00
Net Income
TTM ($M)
11.64
191.00
-304.00
-119.42
79.10
114.42
129.17
33.71
2,029.00
1,007.45
622.00
Report Date: April 12, 2015
PAGE 2
April 12, 2015
NYSE: DDD
3D SYSTEMS CORP
Sector: Technology Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
COMPANY DESCRIPTION
3D Systems Corporation, through its subsidiaries,
operates as a provider of 3D printing centric
design-to-manufacturing solutions in the Americas,
Germany, and the Asia-Pacific, as well as other
European, the Middle East, and African countries. The
company's 3D printers transform data input from the
format generated by 3D design software, CAD software,
or 3D scanning and sculpting devices to printed parts
using integrated, engineered plastic, metal, nylon,
rubber, wax, and composite print materials. It offers
stereolithography, selective laser sintering, direct metal,
multi-jet, color jet, and film transfer imaging printers, as
well as plastic jet printing 3D printers. The company also
blends, packages, and sells proprietary, consumable,
engineered plastic, nylon, metal, and composite
materials for use in printers under the Accura, DuraForm,
CastForm, LaserForm, and VisiJet brand names. In
addition, it provides software packages and design tools
for reverse engineering, inspection, and haptic design
packages; CAD and CAM software packages designed
for the manufacturing industry; and 3D scanners and
perceptual devices. Further, the company offers pre-sale
and post-sale services comprising applications
development and custom engineered production
solutions; and installation, warranty, and maintenance
services, as well as proprietary software printer drivers.
It primarily serves manufacturers of automotive,
aerospace, computer, electronic, defense, education,
consumer, energy, and healthcare products, as well as
original equipment manufacturers, government agencies,
universities and other educational institutions,
independent service bureaus, and individual consumers.
The company sells its products and services through its
direct sales force, sales agents, resellers, and
distributors. 3D Systems Corporation was founded in
1986 and is headquartered in Rock Hill, South Carolina.
3D SYSTEMS CORP
333 Three D Systems Circle
Rock Hill, SC 29730
USA
Phone: 803-326-3900
http://www.3dsystems.com
Beta
2.20
Market Capitalization
$3.2 Billion
52-Week Range
$26.29-$69.56
Price as of 4/9/2015
$28.77
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of DDD shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
1.5
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, DDD has a growth score better than 20% of
the stocks we rate.
strong
1.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 20% of the companies we
cover.
strong
2.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 30% of the companies we review.
strong
0.5
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is more volatile than nearly all of the stocks we monitor.
strong
4.5
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 80% of the companies we analyze.
strong
0.5
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. This company
pays no dividends.
strong
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: April 12, 2015
PAGE 3
April 12, 2015
NYSE: DDD
3D SYSTEMS CORP
Sector: Technology Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
Consensus EPS Estimates² ($)
IBES consensus estimates are provided by Thomson Financial
0.17
Q1 FY15
0.96 E
1.24 E
2015(E)
2016(E)
Beta
2.20
Market Capitalization
$3.2 Billion
52-Week Range
$26.29-$69.56
Price as of 4/9/2015
$28.77
FINANCIAL ANALYSIS
3D SYSTEMS CORP's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when
compared to the same period a year ago. Even though sales increased, the net income has decreased,
representing a decrease to the bottom line. 3D SYSTEMS CORP is extremely liquid. Currently, the Quick Ratio
is 3.05 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has
decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.62% from the same quarter
last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial
difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q4 FY14
187.44
22.77
7.39
1.55
Q4 FY13
154.82
28.03
19.68
11.22
Q4 FY14
284.86
1,525.97
9.59
1,292.92
Q4 FY13
306.32
1,097.86
18.88
932.65
Q4 FY14
47.93%
12.14%
3.94%
0.43
0.76%
0.90%
Q4 FY13
51.78%
18.10%
12.71%
0.47
4.01%
4.72%
Q4 FY14
3.91
0.01
0.23
32.54
Q4 FY13
4.77
0.02
0.85
23.09
Q4 FY14
112
0.00
0.01
11.59
NA
2,628,650
Q4 FY13
103
0.00
0.11
9.04
NA
3,150,674
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: April 12, 2015
PAGE 4
April 12, 2015
NYSE: DDD
3D SYSTEMS CORP
Sector: Technology Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
RATINGS HISTORY
Our rating for 3D SYSTEMS CORP has not changed
since 3/13/2014. As of 4/9/2015, the stock was
trading at a price of $28.77 which is 58.7% below its
52-week high of $69.56 and 9.4% above its 52-week
low of $26.29.
Price/Earnings
1
2
3
premium
$75
$50
2013
Market Capitalization
$3.2 Billion
52-Week Range
$26.29-$69.56
4
5
DDD 261.55
Peers 17.90
• Premium. A higher P/E ratio than its peers can
signify a more expensive stock or higher growth
expectations.
• DDD is trading at a significant premium to its peers.
Price/Projected Earnings
From
Buy
Buy
To
Hold
Buy
RATINGS DEFINITIONS &
DISTRIBUTION OF THESTREET RATINGS
(as of 4/9/2015)
47.06% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
29.50% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
23.45% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
2
3
premium
Price reflects the closing price as of the date listed, if available
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
1
4
5
1
2
3
premium
4
5
Price/Sales
1
2
premium
3
4
5
Price to Earnings/Growth
4
5
discount
1
2
3
premium
4
5
discount
DDD 0.34
Peers 0.76
• Discount. The PEG ratio is the stock’s P/E divided
by the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
• DDD trades at a significant discount to its peers.
Earnings Growth
1
2
3
4
lower
5
higher
DDD -75.00
Peers 22.56
• Lower. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
• However, DDD is expected to significantly trail its
peers on the basis of its earnings growth rate.
Sales Growth
discount
DDD 4.91
Peers 3.12
• Premium. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• DDD is trading at a significant premium to its
industry.
3
DDD 62.78
Peers 18.52
• Premium. The P/CF ratio, a stock’s price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
• DDD is trading at a significant premium to its peers.
discount
DDD 2.48
Peers 5.07
• Discount. A lower price-to-book ratio makes a
stock more attractive to investors seeking stocks
with lower market values per dollar of equity on the
balance sheet.
• DDD is trading at a significant discount to its peers.
2
premium
discount
DDD 23.20
Peers 14.41
• Premium. A higher price-to-projected earnings ratio
than its peers can signify a more expensive stock
or higher future growth expectations.
• DDD is trading at a significant premium to its peers.
Price/Book
1
Price/CashFlow
discount
2014
MOST RECENT RATINGS CHANGES
Date
Price
Action
3/13/14
$60.72 Downgrade
4/9/13
$32.71 No Change
Price as of 4/9/2015
$28.77
VALUATION
HOLD. 3D SYSTEMS CORP's P/E ratio indicates a significant premium compared to an average of 17.90 for the
Computers & Peripherals industry and a significant premium compared to the S&P 500 average of 20.44. To
use another comparison, its price-to-book ratio of 2.48 indicates a discount versus the S&P 500 average of
2.82 and a significant discount versus the industry average of 5.07. The price-to-sales ratio is well above both
the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, 3D
SYSTEMS CORP seems to be trading at a premium to investment alternatives within the industry.
$100
HOLD: $60.72
BUY: $32.71
2 Year Chart
Beta
2.20
1
2
3
lower
4
5
higher
DDD 27.31
Peers 11.10
• Higher. A sales growth rate that exceeds the
industry implies that a company is gaining market
share.
• DDD has a sales growth rate that significantly
exceeds its peers.
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: April 12, 2015
PAGE 5
© Copyright 2024