3D Systems: On The Verge Of Turnaround

Dec. 22, 2019 2:50 PM ET3D Systems Corporation (DDD)PRLB10 Comments


  • 3D Systems's management is determined to make the company profitable.
  • Although growth has been slow, the industry still holds a lot of potential.
  • If 3D manages to achieve positive bottom line in 2020, we could see the share price triple.

Thesis Summary

3D Systems Corp. (NYSE:DDD) has come a long way down due to slow growth. However, the company is focused on achieving profitability despite this slowdown. Recent results are encouraging, and 2020 will be an inflection point for the company when the results of 5 years of new leadership could finally materialize and put 3D Systems in investors’ crosshairs once again.

Company Overview & Industry

3D Systems was one of the first companies to enter the 3D printing industry. Founded in 1986, the company operates in the business of 3D printing at an enterprise-level, providing materials as well as services and software to its clients. 3D’s clients are mainly in medical, dental, automotive, aerospace, durable goods, government, defense, technology, jewelry, electronics, education, consumer goods, energy, and other industries.

3D’s stock peaked back in 2014, reaching around $95. Since then, the company has come (down) a long way. 2015 was an inflection point with the company officially exiting the 3D “retail” segment and posting a ~$500 million net loss due to goodwill.

As of writing this article, the stock sits at $8.77, quite close to its historical low. Indeed, 3D has fallen out of favor in the eyes of investors and it is no surprise once we look at both the state of the industry and the company.

The problems with 3D Systems Corporation

In this section, we will cover the main pain points that 3D is having to deal with. These will serve to justify the decline in the stock price and will allow us to understand if and how the company can turn things around.

Slowing growth:

Source: SA

3D was in its time producing staggering growth rates, and investors expected the company to be able to sustain this. If we look at the 10-year CAGR, 3D has achieved revenue growth

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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