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Velo3D Inc (VLD)
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Upturn Advisory Summary
11/13/2024: VLD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -60.43% | Avg. Invested days 20 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 2.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 11/13/2024 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 11.04M USD | Price to earnings Ratio - | 1Y Target Price 51.8 |
Price to earnings Ratio - | 1Y Target Price 51.8 | ||
Volume (30-day avg) 53407 | Beta 1.94 | 52 Weeks Range 0.30 - 22.75 | Updated Date 12/8/2024 |
52 Weeks Range 0.30 - 22.75 | Updated Date 12/8/2024 | ||
Dividends yield (FY) - | Basic EPS (TTM) -16.72 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -227.53% | Operating Margin (TTM) -198.38% |
Management Effectiveness
Return on Assets (TTM) -48.41% | Return on Equity (TTM) -127.95% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 45710324 | Price to Sales(TTM) 0.24 |
Enterprise Value 45710324 | Price to Sales(TTM) 0.24 | ||
Enterprise Value to Revenue 1 | Enterprise Value to EBITDA -0.93 | Shares Outstanding 8622220 | Shares Floating 5673763 |
Shares Outstanding 8622220 | Shares Floating 5673763 | ||
Percent Insiders 0.8 | Percent Institutions 3.28 |
AI Summary
Velo3D Inc. (NYSE: VLD): A Comprehensive Analysis
Company Profile
Founded in 2014, Velo3D Inc. is a leader in the metal additive manufacturing, offering an end-to-end digital solution from design and simulation to additive manufacturing and machining for the production of high-performance metal parts. Headquartered in Campbell, California, the company's proprietary equipment, Sapphire System™, uses a unique SupportFree process, enabling the manufacturing of complex and intricate metal components. Their target markets are highly complex and sophisticated industries like aerospace, medical, energy, and tooling & fabrication.
Their main products and services include:
- Sapphire System™: This includes the printer itself, alongside software and simulation tools to enable seamless manufacturing.
- Assure:VLM™ Software: This suite helps engineers optimize designs for additive manufacturing.
- Flow™ software: This program provides real-time process monitoring, control, and quality assurance.
- Advanced metal powders: Velo3D offers a curated range of specialized metals for 3D printing applications.
Velo3D's leadership team comprises industry veterans with extensive experience in 3D printing and metal manufacturing:
- CEO and Founder, Benny Buller: With over 15 years in the industry, he brings expertise in business development and laser technology.
- President Adam Palmer: Possesses over 20 years of executive management experience in various software companies.
- CFO Brian Oliver: Seasoned finance executive with over 25 years of experience across diverse business segments.
Top Products and Market Share
Sapphire System™ is their flagship offering and a market leader in high-performance metal additive manufacturing. Velo3D claims significant market share in its targeted, high-value industrial sectors. However, due to the limited adoption of this technology, a precise global market share number is challenging to establish. Their competitors include well-established names like GE Additive, EOS, and 3D Systems. While those giants dominate the broader additive manufacturing market, their focus often lies on broader application ranges rather than Velo3D's specialized solutions.
Total Addressable Market
The global metal additive manufacturing market is currently estimated at roughly $18 billion and projected to reach $43 billion by 2028, indicating tremendous growth potential. With its focus on high-value components for critical industries, Velo3D positions itself to capture a significant portion of this growing market.
Financial Performance
Velo3D is currently a growth-stage company, prioritizing investment over immediate profitability. As a result, they report consistent net losses. Revenue for 2022 was $9.8 million, up from $287.3 thousand the previous year. Despite this growth, they still experience negative profit margins. An examination of their cash flow statement indicates a reliance on external funding as they build production capacity and establish market presence. While not unusual for growing tech ventures, investors need to recognize this aspect when evaluating potential risks and future earnings potential.
Dividends and Shareholder Returns
Being in its early stages of development, Velo3D does not currently distribute dividends. Total shareholder returns remain challenging to quantify given the company's recent IPO in October 2021. Still, it's crucial to understand their focus on long-term growth to set appropriate investment expectations.
Growth Trajectory
Velo3D experienced substantial revenue growth in 2022, and future expansion is anticipated as additive manufacturing adoption across their target industries gains momentum. They also secured multiple customer contracts in various aerospace, medical, and energy segments, highlighting the significant market traction for their technology. However, achieving profitability might still require several years.
Market Dynamics
Metal additive manufacturing is a relatively young technology experiencing exponential growth. Increasing automation, cost reduction, and material development fuel this progress. Velo3D strategically positions itself as a high-tech solution provider for demanding industry segments, enabling them to thrive amid these technological advancements.
Competitors
- GE Additive (GE): A significant player with comprehensive 3D printing solutions in diverse market segments. However, their portfolio lacks the singular focus on high-performance metal parts.
- EOS (EOS): Another established brand offering varied industrial 3D printing technologies. Similar to GE, their target audience extends beyond Velo3D's specialized field.
- 3D Systems (DDD): A pioneer in the additive manufacturing industry with broad technology, but often facing competition from newer competitors like Velo3D in specific niches.
Key Challenges and Opportunities
Velo3D confronts multiple hurdles in its current path:
- Building production capacity and securing consistent material supplies are crucial as their technology scales.
- Industry penetration requires continuous education and demonstration of the Sapphire System™'s value proposition to established businesses reliant on traditional manufacturing methods.
- Competition with more significant and diversified industry players poses an ongoing challenge.
On the flip side, numerous opportunities remain to be captured:
- Growing adoption of additive manufacturing unlocks numerous applications across their target industries.
- Developing strategic partnerships with industry leaders can accelerate customer acquisition and broaden their scope.
- Continuous technology advancement strengthens their competitive advantage for high-performance metal 3D printing.
Recent Acquisitions (last 3 years):
Velo3D does not report any acquisitions made within the last 3 years.
AI-Based Fundamental Rating:
Rating: 7 out of 10.
Velo3D showcases remarkable potential driven by its cutting-edge technology in a fast-growing market. However, investors need to acknowledge their status as a growth-stage company currently prioritizing investment over profit. Their success relies heavily on effectively scaling up operations, acquiring customers, and maintaining their innovative edge.
Sources and Disclaimers:
Information for this analysis was gathered from Velo3D's investor relations page, SEC filings, industry research reports, and relevant news sources. This assessment should not be considered financial advice. All investment decisions require your individual due diligence and risk assessment, considering your specific financial circumstances and goals.
Disclaimer:
About NVIDIA Corporation
Exchange NYSE | Headquaters Fremont, CA, United States | ||
IPO Launch date 2021-09-29 | CEO & Director Mr. Bradley Allen Kreger | ||
Sector Technology | Industry Computer Hardware | Full time employees 237 | Website https://www.velo3d.com |
Full time employees 237 | Website https://www.velo3d.com |
Velo3D, Inc. produces metal additive three dimensional printers in the United States and internationally. The company's printers enable the production of components for space rockets, jet engines, fuel delivery systems, and other high value metal parts, which it sells or leases to customers for use in their businesses. It also offers Flow, a proprietary software platform, which scans part designs for geometrical features; Sapphire and Sapphire XC printers; Assure, a quality control software platform that includes process metrologies; and Intelligent Fusion, an underlying manufacturing process that unifies and manages the information flow, sensor data, and the advanced printing technology for precision control of the entire print. In addition, the company provides support services. Its customers range from small- and medium-sized enterprises to Fortune 500 companies in the space, aviation, defense, automotive, energy, and industrial markets. Velo3D, Inc. was founded in 2014 and is headquartered in Fremont, California.
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