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3D Systems Corporation’s (NYSE:DDD): 3D Systems Corporation, through its subsidiaries, provides three-dimensional (3D) printing products and services worldwide. The company’s loss has recently broadened since it announced a -US$66.19M loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$77.18M, moving it further away from breakeven. Many investors are wondering the rate at which DDD will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for DDD’s growth and when analysts expect the company to become profitable.
See our latest analysis for 3D Systems
According to the industry analysts covering DDD, breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of US$8.33M in 2020. So, DDD is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, I calculated the rate at which DDD must grow year-on-year. It turns out an average annual growth rate of 59.64% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, DDD may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into detail the detail of DDD’s upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. DDD has managed its capital prudently, with debt making up 1.23% of equity. This means that DDD has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of DDD which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at DDD, take a look at DDD’s company page on Simply Wall St. I’ve also compiled a list of key factors you should further examine:
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Valuation: What is DDD worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether DDD is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on 3D Systems’s board and the CEO’s back ground.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.