3D Systems Corporation EBITDA dropped on 868% and Revenue dropped on 11.4%
03/01/2021 • About 3D Systems Corporation (
$DDD) • By InTwits
3D Systems Corporation reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 3D Systems Corporation is a company in decline: 2020 revenue growth was -11.4%, 5 years revenue CAGR was -3.5%
- 3D Systems Corporation motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 was 2.8% while average EBITDA Margin was -0.2% for the sames years
- 3D Systems Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 5.5%
- CAPEX is quite volatile: $14m in 2020, $24m in 2019, $41m in 2018, $31m in 2017, $17m in 2016
- In the last 5 years the company invested considerably less than D&A: $126m vs. $182m
- The company has unprofitable business model: ROIC is -20.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
3D Systems Corporation's Revenue dropped on 11.4%. Annual revenue decline showed slowdown in 20Q4 - revenue increased on 4.9%. During the last 5 years Revenue growth topped in 2018 at 6.4% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 7.6% to 9.0% in 2020.
Gross Margin decreased on 4.1 pp from 44.2% to 40.1% in 2020. Gross Margin stuck to a declining trend at -2.1 pp per annum in 2016-2020. SG&A as a % of Revenue decreased slightly on 0.97 pp from 40.4% to 39.5% in 2020.
Net Income margin dropped on 15.7 pp from -11.1% to -26.8% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 3D Systems Corporation had CAPEX/Revenue of 2.4%. The company's CAPEX/Revenue decreased on 2.3 pp from 4.8% in 2017 to 2.4% in 2020. For the last three years the average CAPEX/Revenue was 4.1%. During 2016-2020 CAPEX as a % of Revenue topped in 2018 at 5.9% and was declining since that time.
Return on investment
The company operates at negative ROIC (-20.2%) and ROE (-31.4%). ROIC dropped on 11.6 pp from -8.7% to -20.2% in 2020. ROE dropped on 18.7 pp from -12.7% to -31.4% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is . Net Debt / EBITDA surged on 5.2x from -5.2x to in 2020. Debt dropped on 14.5% while cash dropped on 43.9%.
3D Systems Corporation has no short term refinancing risk: cash is higher than short term debt (647.5%).
Management team
3D Systems Corporation's CEO Jeffrey A Graves "Jeff" has spent 9 months with the company. Jagtar Narula is a the company's CFO. Jagtar Narula has spent 6 months years at the company.
Financial and operational results
FY ended 12/31/2020
3D Systems Corporation ($DDD) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 633.0 | 646.1 | 687.7 | 629.1 | 557.2 | -11.4% |
| Gross Profit | 309.8 | 304.8 | 324.4 | 278.0 | 223.4 | -19.7% |
| SG&A | 259.8 | 264.2 | 272.3 | 254.4 | 219.9 | -13.5% |
| EBITDA | 22.1 | 8.1 | 16.1 | 8.0 | -61.0 | -867.8% |
| EBIT | -38.4 | -54.0 | -43.2 | | | |
| Interest expence | 1.3 | 0.9 | 2.6 | | | |
| Tax | -0.5 | 7.8 | 2.0 | | | |
| Net Income | -38.4 | -66.2 | -45.5 | -69.9 | -149.6 | |
| Stock Based Compensation | 31.3 | 27.3 | 29.3 | | | |
Balance Sheet
|
|---|
| Cash | 184.9 | 136.3 | 110.0 | 133.7 | 75.0 | -43.9% |
| Accounts Receivable | 127.1 | 129.9 | 126.6 | | | |
| Inventory | 103.3 | 103.9 | 133.2 | | | |
| Accounts Payable | 40.5 | 55.6 | 66.7 | | | |
| Short Term Debt | 0.6 | 0.6 | 0.7 | 12.1 | 11.6 | -4.1% |
| Long Term Debt | 7.6 | 7.1 | 31.4 | 80.6 | 67.7 | -16.0% |
Cash flow
|
|---|
| Capex | 16.6 | 30.9 | 40.7 | 24.0 | 13.6 | -43.1% |
| Acquisitions | | 34.3 | | | | |
Ratios
|
|---|
| Revenue growth | -5.0% | 2.1% | 6.4% | -8.5% | -11.4% | |
| EBITDA growth | -104.0% | -63.5% | 99.6% | -50.6% | -867.8% | |
|
|---|
| Gross Margin | 48.9% | 47.2% | 47.2% | 44.2% | 40.1% | -4.1% |
| EBITDA Margin | 3.5% | 1.2% | 2.3% | 1.3% | -11.0% | -12.2% |
| EBIT Margin | -6.1% | -8.4% | -6.3% | | |
| SG&A, % of revenue | 41.0% | 40.9% | 39.6% | 40.4% | 39.5% | -1.0% |
| SBC, % of revenue | 4.9% | 4.2% | 4.3% | | |
| Net Income Margin | -6.1% | -10.2% | -6.6% | -11.1% | -26.8% | -15.7% |
| CAPEX, % of revenue | 2.6% | 4.8% | 5.9% | 3.8% | 2.4% | -1.4% |
|
|---|
| ROIC | -5.5% | -8.1% | -6.6% | -8.7% | -20.2% | -11.6% |
| ROE | -5.9% | -10.5% | -7.6% | -12.7% | -31.4% | -18.7% |
| Net Debt/EBITDA | -8.0x | -15.9x | -4.8x | -5.2x | |
| Interest expence / Average debt | 15.7% | 11.6% | 13.3% | | | |
People
|
|---|
| Insider ownership | 3.8% | 3.8% | 3.8% | | | |
| Employees | 2,445 | 2,666 | 2,620 | | | |
| Revenue/Employee, th. $ | 259 | 242 | 262 | | | |
3D Systems Corporation ($DDD) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 135 | 112 | 135 | 173 | | -11.4% | -28.7% | -13.0% | 4.9% |
| EBITDA | -4 | -20 | -53 | 15 | | - | - | -1,301.2% | 53.0% |
| Net Income | -19 | -38 | -73 | -20 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 113 | 64 | 75 | 75 | | -28.3% | -57.5% | -41.0% | -43.9% |
| Short Term Debt | 12 | 11 | 11 | 12 | | -30.6% | -27.6% | -19.0% | -4.1% |
| Long Term Debt | 78 | 66 | 64 | 68 | | -39.9% | -40.0% | -27.0% | -16.0% |
Ratios
|
|---|
| Gross Margin | 42.4% | 31.4% | 43.4% | 42.0% | | -0.8% | -15.2% | 0.0% | -1.6% |
| EBITDA Margin | -2.8% | -17.5% | -39.2% | 8.8% | | 0.1% | -16.2% | -42.0% | 2.8% |
| Net Income Margin | -14.0% | -33.9% | -53.9% | -11.5% | | 2.0% | -18.7% | -43.1% | -8.6% |
Peers in Technology Hardware, Storage & Peripherals
Below we provide 3D Systems Corporation benchmarking against other companies in Technology Hardware, Storage & Peripherals industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ionix Technology Inc ($IINX) | - | 246.0% | -5.8% | 92.3% | 66.8% |
| Veritec Inc ($VRTC) | - | -52.2% | 53.1% | -38.5% | 42.9% |
| Pure Storage, Inc. ($PSTG) | - | 67.9% | 38.6% | 32.7% | 20.9% |
| USA Technologies, Inc. ($USAT) | - | 34.5% | - | - | 12.9% |
| CPI Card Group Inc. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 1.5% | 4.3% | -2.0% | -8.8% |
|---|
| 3D Systems Corporation ($DDD) | - | 2.1% | 6.4% | -8.5% | -11.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Immersion Corporation ($IMMR) | 99.7% | 99.4% | 99.8% | 99.5% | 99.4% |
| Datasea Inc ($DTSS) | - | 39.3% | 54.4% | - | 89.7% |
| Pure Storage, Inc. ($PSTG) | 61.9% | 65.9% | 65.5% | 66.4% | 69.0% |
| Avid Technology, Inc. ($AVID) | 65.0% | 57.8% | 57.9% | 60.5% | 63.3% |
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 38.5% | 38.9% | 38.3% | 32.7% | 37.4% |
|---|
| 3D Systems Corporation ($DDD) | 48.9% | 47.2% | 47.2% | 44.2% | 40.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Apple Inc. ($AAPL) | 32.7% | 31.2% | 30.8% | 29.4% | 28.7% |
| CPI Card Group Inc. ($PMTS) | 14.9% | -0.0% | 9.0% | 15.2% | 17.9% |
| Immersion Corporation ($IMMR) | -25.1% | -127.0% | 48.6% | -50.4% | 17.4% |
| Avid Technology, Inc. ($AVID) | 17.5% | 6.6% | 8.4% | 13.5% | 13.6% |
| Western Digital Corporation ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (19 companies) | 4.9% | 4.5% | 7.9% | 7.9% | 7.9% |
|---|
| 3D Systems Corporation ($DDD) | 3.5% | 1.2% | 2.3% | 1.3% | -11.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Datasea Inc ($DTSS) | - | 0.0% | 0.0% | - | 20.9% |
| Hewlett Packard Enterprise Company ($HPE) | 10.8% | 10.9% | 9.6% | 9.8% | 8.8% |
| Pure Storage, Inc. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (19 companies) | 1.7% | 1.8% | 2.2% | 1.7% | 1.7% |
|---|
| 3D Systems Corporation ($DDD) | 2.6% | 4.8% | 5.9% | 3.8% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| HP Inc. ($HPQ) | 15.8% | 60.8% | 72.9% | 116.0% | 109.2% |
| Apple Inc. ($AAPL) | 27.0% | 23.8% | 28.0% | 29.5% | 33.0% |
| Avid Technology, Inc. ($AVID) | - | - | 252.4% | 42.1% | 30.0% |
| CPI Card Group Inc. ($PMTS) | 12.8% | -9.3% | 2.7% | 15.4% | 20.5% |
| NCR Corporation ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | 1.8% | 1.6% | 3.6% | 4.2% | 2.6% |
|---|
| 3D Systems Corporation ($DDD) | -5.5% | -8.1% | -6.6% | -8.7% | -20.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
| CPI Card Group Inc. ($PMTS) | 5.8x | - | 12.4x | 7.2x | 5.2x |
| Hewlett Packard Enterprise Company ($HPE) | 0.4x | 1.2x | 1.6x | 2.6x | 5.2x |
| NCR Corporation ($NCR) | 2.7x | 2.3x | 5.2x | 3.3x | 4.8x |
| Western Digital Corporation ($WDC) | 5.5x | 1.7x | 1.1x | 3.7x | 3.5x |
| |
|---|
| Median (12 companies) | 0.4x | 0.5x | 1.1x | 1.8x | 3.0x |
|---|
