Last Updated: 14 Sep 2024
Executive Summary
Desktop Metal Inc. (DM) is a leading provider of additive manufacturing solutions. The company has a strong market position with a wide range of products and services. DM is well-positioned to benefit from the growing demand for additive manufacturing in the years to come. However, the company is still unprofitable and faces competition from larger and more established players.
Company Overview
Desktop Metal Inc. was founded in 2015 and is headquartered in Burlington, Massachusetts. The company manufactures and sells additive manufacturing solutions for engineers, designers, and fabricators. DM's products include 3D printers, software, and materials. The company has a global presence with operations in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.
Fundamental Analysis
DM's financial performance has been mixed in recent years. The company has reported losses in each of the past three years. However, revenue has grown steadily, reaching $174.6 million in the past 12 months. DM's gross margin is low, but the company has been able to reduce its operating expenses in recent quarters.
DM's balance sheet is strong. The company has $209.9 million in cash and equivalents and no debt. DM also has a strong backlog of orders, which provides visibility into future revenue.
Technical Analysis
DM's stock price has been trending lower in recent months. The stock is currently trading at $4.68, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
DM's stock is likely to remain under pressure in the short term. The company is still unprofitable and faces competition from larger and more established players. However, DM's strong balance sheet and backlog of orders provide some support for the stock.
Long Term Outlook
DM is well-positioned to benefit from the growing demand for additive manufacturing in the years to come. The company has a strong market position with a wide range of products and services. DM is also investing heavily in research and development, which should help the company to maintain its competitive advantage.
Analyst Recommendations
The majority of analysts have a hold rating on DM's stock. The average analyst target price is $5.00.
