One-glance verdict
Overvalued
$4.77 our estimate vs market $7.99
Wall Street consensus: $12.00 (151.3% higher than our fair-value estimate)
67% above our estimate, beyond the bull case
Fundamentals snapshot
Stratasys Ltd.
SSYS · NMS · Technology · Computer Hardware
Current price
$7.99
52-week range
$7.34 - $12.81
Market cap
$699.82M
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 sells 3D printers that use plastic-like materials to create everything from car parts to medical models directly from a computer design. The company makes money not just from the initial printer sale, but also by continuously selling the required printing materials and software, which creates recurring revenue (income that is predictable and likely to continue). This model is important because it can provide a more stable stream of income than relying on one-time hardware sales alone.
How the company got here
Stratasys was born from a simple idea in 1988 when co-founder Scott Crump tried to make a toy frog for his daughter with a glue gun. This led him to invent a new way of creating three-dimensional objects layer-by-layer, a technology now known as Fused Deposition Modeling (FDM). The company was officially founded in 1989, sold its first product in 1992, and became a public company in 1994. Over the years, Stratasys grew by acquiring other companies with different 3D printing technologies, like Objet Geometries and MakerBot, to expand its capabilities. This has made it one of the largest and most established companies in the 3D printing industry.
What it actually does
Stratasys sells 3D printers and the materials they use, which are mostly specialized plastics called polymers. Think of it like a regular paper printer, but instead of putting ink on a flat page, a 3D printer builds a physical object from the ground up, layer by tiny layer, based on a digital design. Companies in industries like aerospace, automotive, and healthcare use these printers to create everything from early models of new products (prototypes) to manufacturing tools and even finished parts for their final products. Stratasys also provides software to run the printers and offers services like printing parts on-demand for customers who don't own a printer themselves.
Products
This is the company's largest business area, making up more than two-thirds of its total sales. It includes the sale of the 3D printing machines themselves and the materials, or 'consumables', that the printers use to create objects. The printers range from smaller, office-friendly models to large, industrial systems for factory floors. The consumables are a crucial and recurring source of revenue (income a company receives), because just like a regular printer needs ink, Stratasys printers need a constant supply of their special plastic filaments and resins to operate.
Services
This part of the business, which accounts for just under a third of the company's revenue, is all about supporting customers who use Stratasys printers. This includes installation of new machines, training employees on how to use them, and providing ongoing maintenance and technical support. This segment also includes a service where Stratasys will print parts for other companies, which is useful for customers who need something 3D printed but aren't ready to buy their own machine.
What management is betting on now
The company's leadership is focused on shifting from just being a provider of printers for prototyping (making early models) to becoming a key partner in full-scale manufacturing. They are concentrating on specific industries with high growth potential, such as aerospace, automotive, and healthcare, to create specialized solutions. Management is also emphasizing the sale of materials and software as a way to generate more consistent, recurring revenue. By offering a complete package of hardware, software, materials, and services, Stratasys aims to make it easier for large manufacturers to adopt 3D printing for producing final products.
Price history
How the share price has moved
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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
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Diluted EPS
—
Operating cash flow
$15.14M
Free cash flow
$-6.97M
Fetching…
Sources
Revenue
$572.46M
Net income
—
Diluted EPS
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Operating cash flow
$7.83M
Free cash flow
$-3.05M
Fetching…
Sources
Is it cheap or expensive?
Fair value $4.77 vs current price $7.99
Wall Street consensus is the average analyst price target: $12.00 (151.3% higher than our fair-value estimate).
Our most-likely fair value is $4.77 a share — about 40.2% below today's price of $7.99, 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 $68.19M 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
42.61x
P/B
0.85x
P/S
1.28x
EV/EBITDA
-20.38x
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
-1.37
EPS 5Y CAGR
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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
—
Payout ratio
0.0%
Last ex-div date
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