DDD - 3D Systems Corp Faces A 2030 Feast-Or-Famine Scenario

2024-05-31 07:42:48 ET

Summary

• 3D Systems is well-positioned to capitalize on the growing bioprinting industry, particularly in the field of 3D organ printing.
• The company's financials show significant challenges, including negative net income and high levels of debt, which may impact its ability to thrive in the short to medium term.
• Despite the potential in the organ printing market, I recommend holding off on investing in 3D Systems until its financial situation improves or it demonstrates strong growth in the next few years.

Introduction

The additive manufacturing company 3D Systems Corporation ( DDD ) is mostly known for having a comprehensive, vertically-integrated 3D printing operation – that is, it is known for developing, producing, maintaining, and fueling all parts that comprise its additive manufacturing network, including the 3D printing machines themselves, the software the machines run on, and the materials the machines use to create printed structures. 3D Systems has attained its current position largely through a mostly-successful M&A campaign over at least the past 2 decades, buying up innovative names in the 3D printing space to solidify its position as a potent player in the 3D printing space. This M&A play appears poised to pay off – the general consensus for the global 3D printing industry is to grow at around a 20% CAGR from the early 2020s until 2030, and to reach around $100 billion in value by 2030, resulting in a sizable opportunity for 3D Systems and other 3D printing companies by the end of the decade.

While it may not be as large an opportunity financially speaking, there is another critical opportunity that may not be appreciated by many investors that 3D Systems may be central to – bioprinting, specifically 3D organ printing.

In this article, I will argue that not only can this bioprinting opportunity be much more significantly capitalized on by 3D Systems because it is one of the few companies well-positioned to capitalize on it at all, 3D Systems would touch many people around the world and significantly improve lives in this segment of the 3D printing industry, and would become noteworthy as one of the only large players in the bioprinting field committed to printing human organs at scale....

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