Getting to Know 3-D Printing: An Overview for Investors


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There's a lot to know about 3-D printing and this presentation sheds some light on the subject for beginning investors, or experts looking to refresh their knowledge on the subject.

Published in: Investor Relations, Business

Getting to Know 3-D Printing: An Overview for Investors

  1. 1. Getting to Know 3-D Printing: An Overview for Investors
  2. 2. 3-D Printing Basics Also known as additive manufacturing. • It’s a process that “prints” an object layer by layer in a range of different materials. • Creates less waste than traditional “subtractive” manufacturing.
  3. 3. 3-D Printing Basics Industrial-grade 3-D printers can print objects as long as 4 meters.
  4. 4. 3-D Printing Basics Consumer 3-D printers are geared toward smaller jobs.
  5. 5. 3-D Printing Strengths No assembly required! • It can print really complicated objects in one piece. • Frees up valuable resources and could improve operational efficiency. • More creative freedom in design process.
  6. 6. 3-D Printing Weaknesses It’s slow as molasses. • Prints can take hours or even days for bigger jobs. • Objects often lack smoothness thanks to “staircase” effect of layerby-layer-printing process. • Still not appropriate for most large manufacturing runs.
  7. 7. Major 3-D Printing Technologies Fused Deposition Modeling • Extrusion-based layer-bylayer-printing process Selective Laser Sintering (pictured) • Granular material selectively fused together with a laser Material Jetting • Powder bed of material with inkjet-style print head to bind layers together Stereolithography • UV light sensitive resin “cured” layer by layer
  8. 8. Common 3-D Printing Materials • Plastics • Metal powders • Ceramic powder • Glass powder • Sand • Sugar
  9. 9. Major 3-D Printing Applications • • • • • • • Medical implants Dental implants Orthopedics Aerospace Automotive Biological Confectionary
  10. 10. 3-D Printing Market Opportunity 390% Growth in 9 Years • Wohlers Associates estimates the 3-D printing industry will grow from $2.2 billion in 2012 to $10.8 billion by 2021. • At projected growth rate, the industry is expected to double in size roughly every 3.75 years. • Represents a 19.3% per year compounded annual growth rate.
  11. 11. 5 Ways to Invest 3D Systems (NYSE: DDD) • Largest by revenue and most diversified 3-D printing company around. • Offers 3-D printing in plastic, metal, ceramic, and even sugar. Stratasys (NASDAQ: SSYS) • 2nd largest player, focuses solely in plastics segment. ExOne (NASDAQ: XONE) • Specializes in metal and sand printing for industrial customers that need large objects printed. voxeljet (NYSE: VJET) • German company that offers largest print beds in industry primarily for metal casting applications. Arcam (NASDAQOTH: AMAVF) • Swedish company that specializes in metal printing for aerospace and medical implants. Trades over-the-counter in U.S.
  12. 12. These Stocks Are Expensive! Company Trailing Price/Sales Ratio Trailing P/E Ratio Forward P/E Ratio 3D Systems 21.5 208 76 Stratasys 16.2 N/A 57 ExOne 22.8 N/A 155 voxeljet 52.7 N/A 440 Arcam 19.6 172 181 •Investors are pricing in high growth expectations for 3-D printing. •Sky-high valuations = a higher degree of investment risk.
  13. 13. Setting Expectations With such high valuations, it’s important to set the right expectations going forward: • 3-D printing stocks have rallied tremendously over the last year. Arcam, ExOne, and 3D Systems have more than doubled in value in the last year. • As a result, investing in 3-D printing requires a long-term time horizon. Thinking in 5-10 year terms will likely serve you well. • 3-D printing investors are almost guaranteed to experience high volatility in the future. A high tolerance for risk is crucial.
  14. 14. 1 Must-Own Stock for 2014 • The Motley Fool's chief investment officer has selected his No. 1 stock for 2014. • It’s one of those stocks that could make you rich. • Just click below to access the report and find out the name of this under-the-radar company.