One-glance verdict
Overvalued
$4.34 our estimate vs market $6.11
Wall Street consensus: $12.00 (176.5% higher than our fair-value estimate)
41% above our estimate, beyond the bull case
Fundamentals snapshot
Stratasys Ltd.
SSYS · NMS · Technology · Computer Hardware
Current price
$6.11
52-week range
$6.08 - $12.24
Market cap
$538.19M
Balance sheet
Healthy
-6.98x Concerning
Net cash $187.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -13.4% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -8.8% to -8.8% over 3 years.
What this company does
Stratasys Ltd.
Stratasys makes fancy 3D printers and the materials that go into them, helping businesses create everything from prototypes to actual products in industries like fashion and medicine. Their money mainly comes from selling these machines and also from ongoing sales of materials and software, which is great because those recurring sales (money coming in regularly, like a subscription) tend to be more predictable. This diversified approach matters because it means they aren't just relying on one-time big printer sales, making their business potentially more stable over time.
How the company got here
Stratasys was founded in 1989 by S. Scott Crump and his wife Lisa, who were inspired by the idea of creating objects layer by layer using a modified glue gun. They sold their first product, the 3D Modeler, in 1992 and went public on the Nasdaq stock exchange in 1994. Over the years, Stratasys has grown through strategic acquisitions, including merging with Objet Ltd. in 2012 and acquiring MakerBot Industries in 2013. The company has consistently focused on developing and refining its 3D printing technologies, becoming a leader in the additive manufacturing industry.
What it actually does
Stratasys is a company that makes 3D printers, software, and materials for creating physical objects from digital designs. Think of it like a high-tech manufacturing tool that builds things layer by layer. These machines are used by businesses and professionals in industries like aerospace, automotive, healthcare, and consumer products to create prototypes, tools, and even final parts. Essentially, Stratasys provides the technology that allows companies to design and produce complex items more efficiently and with greater customization.
Fused Deposition Modeling (FDM)
Fused Deposition Modeling, or FDM, is one of Stratasys' core technologies. It works by melting and extruding thermoplastic filament, laying it down layer by layer to build a 3D object. This technology is widely used for creating prototypes, manufacturing tools, and producing end-use parts across various industries. FDM printers are known for their durability and ability to produce strong, functional parts from a range of materials.
PolyJet Technology
PolyJet is another key technology offered by Stratasys, which is known for its ability to print with multiple materials and colors in a single part. This process jets tiny droplets of photopolymer onto a build platform, which are then instantly cured by UV light. PolyJet is ideal for creating highly detailed prototypes with smooth surfaces and complex geometries, often used for realistic models and visual prototypes in product design and development.
Stereolithography (SLA) and Digital Light Processing (DLP)
Stratasys also offers Stereolithography (SLA) and Digital Light Processing (DLP) printing technologies. SLA uses a UV laser to cure liquid photopolymer resin layer by layer, producing highly accurate and smooth parts. DLP, similar to SLA, uses a digital projector to flash an image of the entire layer at once, which can result in faster print times. These technologies are often used for producing intricate parts with fine details, particularly in medical and dental applications.
Software and Services
Beyond the hardware, Stratasys provides a suite of software solutions, such as GrabCAD, which helps manage design files and the printing process. They also offer professional services, including consulting, rapid prototyping, and direct manufacturing services. This means Stratasys doesn't just sell machines; they offer a complete ecosystem to support their customers from design to production, ensuring they can effectively use the technology to meet their business needs.
What management is betting on now
Stratasys is focusing on leading the industry's shift from traditional prototyping to full-scale manufacturing using additive technology. They are emphasizing repeatable, return-on-investment (ROI)-driven applications in sectors like aerospace, automotive, healthcare, and defense. The company is investing in integrated solutions that combine hardware, software, and materials, aiming to make 3D printing more accessible and reliable for industrial production. Management believes that by focusing on these high-value applications and providing comprehensive support, they can drive significant growth and capture a larger share of the manufacturing market.
How the company got here
Stratasys was founded in 1989 by S. Scott Crump and his wife Lisa, who were inspired by the idea of creating objects layer by layer using a modified glue gun. They sold their first product, the 3D Modeler, in 1992 and went public on the Nasdaq stock exchange in 1994. Over the years, Stratasys has grown through strategic acquisitions, including merging with Objet Ltd. in 2012 and acquiring MakerBot Industries in 2013. The company has consistently focused on developing and refining its 3D printing technologies, becoming a leader in the additive manufacturing industry.
What it actually does
Stratasys is a company that makes 3D printers, software, and materials for creating physical objects from digital designs. Think of it like a high-tech manufacturing tool that builds things layer by layer. These machines are used by businesses and professionals in industries like aerospace, automotive, healthcare, and consumer products to create prototypes, tools, and even final parts. Essentially, Stratasys provides the technology that allows companies to design and produce complex items more efficiently and with greater customization.
Fused Deposition Modeling (FDM)
Fused Deposition Modeling, or FDM, is one of Stratasys' core technologies. It works by melting and extruding thermoplastic filament, laying it down layer by layer to build a 3D object. This technology is widely used for creating prototypes, manufacturing tools, and producing end-use parts across various industries. FDM printers are known for their durability and ability to produce strong, functional parts from a range of materials.
PolyJet Technology
PolyJet is another key technology offered by Stratasys, which is known for its ability to print with multiple materials and colors in a single part. This process jets tiny droplets of photopolymer onto a build platform, which are then instantly cured by UV light. PolyJet is ideal for creating highly detailed prototypes with smooth surfaces and complex geometries, often used for realistic models and visual prototypes in product design and development.
Stereolithography (SLA) and Digital Light Processing (DLP)
Stratasys also offers Stereolithography (SLA) and Digital Light Processing (DLP) printing technologies. SLA uses a UV laser to cure liquid photopolymer resin layer by layer, producing highly accurate and smooth parts. DLP, similar to SLA, uses a digital projector to flash an image of the entire layer at once, which can result in faster print times. These technologies are often used for producing intricate parts with fine details, particularly in medical and dental applications.
Software and Services
Beyond the hardware, Stratasys provides a suite of software solutions, such as GrabCAD, which helps manage design files and the printing process. They also offer professional services, including consulting, rapid prototyping, and direct manufacturing services. This means Stratasys doesn't just sell machines; they offer a complete ecosystem to support their customers from design to production, ensuring they can effectively use the technology to meet their business needs.
What management is betting on now
Stratasys is focusing on leading the industry's shift from traditional prototyping to full-scale manufacturing using additive technology. They are emphasizing repeatable, return-on-investment (ROI)-driven applications in sectors like aerospace, automotive, healthcare, and defense. The company is investing in integrated solutions that combine hardware, software, and materials, aiming to make 3D printing more accessible and reliable for industrial production. Management believes that by focusing on these high-value applications and providing comprehensive support, they can drive significant growth and capture a larger share of the manufacturing market.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-3.05M
FY2025 Q4
$-6.97M
Revenue
$551.10M
Net income
—
Diluted EPS
—
Operating cash flow
$15.14M
Free cash flow
$-6.97M
Fetching…
Sources
Revenue
$572.46M
Net income
—
Diluted EPS
—
Operating cash flow
$7.83M
Free cash flow
$-3.05M
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.34 vs current price $6.11
Wall Street consensus is the average analyst price target: $12.00 (176.5% higher than our fair-value estimate).
Our most-likely fair value is $4.34 a share — about 29.0% below today's price of $6.11, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $187.1M - more cash than debt. Interest coverage -7.0x.
Net debt
$-187.12M
Interest coverage
-6.98x
Stratasys Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SSYS
BASELINE
Stratasys Ltd.
Total debt $25.41M Interest coverage -6.98x This is the baseline the peer rows are being compared against.
Total debt $152.19M Interest coverage -18.47x Neither company has much profit cushion over interest right now.
Total debt $30.82M Interest coverage -12.58x Neither company has much profit cushion over interest right now.
Total debt $79.60M Interest coverage 5.22x This peer still has a real interest-payment cushion, while SSYS does not.
What you should know
The case for and against SSYS
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -13.4% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -8.8% to -8.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
32.59x
P/B
0.65x
P/S
0.98x
EV/EBITDA
-14.03x
PEG ratio
2.06x
Profitability
How much profit each dollar creates
Gross margin
42.4%
Operating margin
-8.8%
Net margin
-21.0%
ROE
-13.4%
ROA
-4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
3.48x
Quick ratio
2.34x
Total debt
$25.41M
Total cash
$212.53M
Growth
How the business has been compounding
Revenue TTM
$2.40B
Revenue 5Y CAGR
-2.4%
EPS TTM
-1.20
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-114.08M
Free CF TTM
$-6.97M
FCF margin
-0.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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