NNDM - Nano Dimension: Shrinking Runway

2024-06-07 11:56:03 ET

Summary

• Nano Dimension Ltd. is still waiting for the right opportunity to acquire an additive manufacturing peer.
• Share repurchases could create shareholder value given that Nano Dimension's enterprise value is negative, but it hinders the company's ability to make acquisitions.
• Share repurchases are also somewhat risky, given that Nano Dimension's losses are still relatively large.
• While Nano Dimension is implementing cost-cutting measures, it will likely need greater scale to achieve profitability.
• This is complicated by a weak demand environment and Nano Dimension's limited ability to create organic growth.

Nano Dimension Ltd. ( NNDM ) is treading water currently as it waits for the right opportunity to deploy its large cash balance in an acquisition. The last time I wrote about Nano Dimension , I suggested that it would likely need to wait until peers fell under greater financial stress before they became more receptive to a takeover offer. Given continued macro weakness and poor investor sentiment towards additive manufacturing, an opportunity could now be on the horizon....

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