vjet

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SHARES

Among the listed 3D printing companies, voxeljet (NYSE: VJET) is a quite various animal of 3D Systems (DDD) and Stratasys (SSYS). First, it’s a much smaller in size player with a tight range of industrial 3D printing devices for the production of molds and models for metal casting without tooling. Second, it is a German-based developer with 80% of its sales coming of Europe. Third, the company is yet lead by one of its founders. Fourth, in 2015, voxeljet managed to record sales in line with its original forecast. And fifth, voxeljet grew worthwhilely in 2015 with ractuallyue up just about 50% of 2014, a sharp contrast of the zero growth booked at Stratasys and 3D Systems in 2015.

On the other hand, voxeljet’s share price has collapsed since its peak in late 2013, leaving a market capitalisation near book value. This should drive interest of possible suitors.

Voxeljet (VJET) stock price since IPO on 20/10/2013 until today 15/02/2016

Voxeljet (VJET) stock price between IPO in October 2013 until mid February 2016

An astounding growth in the last 5 years

Voxeljet was founded in 1999. In 2010, yearly sales were at €5M, with a 43% gross margin. Since and so, sales have increased five-fold, to reach €24M in 2015. This growth demonstrates the high end of the products manufactured by the company and its ability to render services synonymous with the machines.

€M

2010 2013 2014 2015 (e)
Sales 5m 11m 16m

24m

The CEO is a founder and the main shareholder

Contrary to Stratasys and 3D Systems, voxeljet is lead by its founder and main shareholder, Ingo Ederer. With Rudolf Franz, an early investor in voxeljet, they own just about a quarter of the company. They bring stability and leadership at an worthwhile time for the 3D printing market and the company. Following the IPO in November 2013, Ingo Ederer remained focused on voxeljet’s core market, via the $65M raised fundamentally to structure the business and invest in research and development.

DR INGO EDERER and RUDOLF FRANZ

DR INGO EDERER, CEO and RUDOLF FRANZ, COO / CFO

A sound balance sheet

voxeljet had cash of €33M at the end of 2015 and practically no financial debt. With just about no intangible assets and a net equity of €64M, the balance sheet is clear and effortless to know. It depicts a company quite much focused on its business plan: to grow its sales organically and reach profitability as soon as possible.

voxeljet: what future?

On the 2nd of February 2016, voxeljet issued its financial guidance for 2016. It is worth noting that the company did reach its ambitious 2015 target. Now, they forecast sales at between €28M and €30M for 2016, an increase of over 20% of 2015, actually yet 2015 numbers include voxeljet UK that are not included in 2016, next the decision to sell back this subsidiary. The company expects to reach a great 40% gross margin. This can bring voxeljet to EBITDA break actually, a worthwhile milestone. With investment expected in the €12-13M range, net cash at end 2016 is forecast at €20M.

Assuming Voxeljet accomplishes its 2016 goal, the company can have created the foundation for additional growth. €20M can appear like too little to bring them to the €100M ractuallyue mark; therefore, Ingo Ederer may be caning to raise additional cash in 2016 to store expanding the company. Considering the worthwhile volatility on the stock market, the CEO may most likely try to find an industrial partner or to merge with another 3D printing developer.

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Samuel Adams

About The Author

Samuel is passionate by value driven investment strategies on stocks and financial markets