Fundamental Analysis of DESKTOP METAL INC-A(NYSE:DM) stock

Fundamental Rating

Taking everything into account, DM scores 2 out of 10 in our fundamental rating. DM was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of DM have multiple concerns. DM is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

DM had negative earnings in the past year.

DM had a negative operating cash flow in the past year.

In the past 5 years DM reported 4 times negative net income.

In the past 5 years DM always reported negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -70.58%, DM is doing worse than 89.23% of the companies in the same industry.

With a Return On Equity value of -133.77%, DM is not doing good in the industry: 88.46% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
ROA	-70.58%
ROE	-133.77%
ROIC	N/A

ROA(3y)-62.01%

ROA(5y)-38.09%

ROE(3y)-97.79%

ROE(5y)-59.81%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for DM so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DM does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for DM has been increased compared to 1 year ago.

DM has more shares outstanding than it did 5 years ago.

The debt/assets ratio for DM is higher compared to a year ago.

2.2 Solvency

DM has an Altman-Z score of -5.03. This is a bad value and indicates that DM is not financially healthy and even has some risk of bankruptcy.

DM has a worse Altman-Z score (-5.03) than 87.69% of its industry peers.

A Debt/Equity ratio of 0.47 indicates that DM is not too dependend on debt financing.

The Debt to Equity ratio of DM (0.47) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	N/A
Altman-Z	-5.03

ROIC/WACCN/A

WACC8.91%

2.3 Liquidity

DM has a Current Ratio of 3.08. This indicates that DM is financially healthy and has no problem in meeting its short term obligations.

DM has a better Current ratio (3.08) than 74.62% of its industry peers.

A Quick Ratio of 1.90 indicates that DM should not have too much problems paying its short term obligations.

With a decent Quick ratio value of 1.90, DM is doing good in the industry, outperforming 76.92% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.08
Quick Ratio	1.9

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

DM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.46%, which is quite impressive.

Looking at the last year, DM shows a decrease in Revenue. The Revenue has decreased by -9.24% in the last year.

DM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 125.70% yearly.

EPS 1Y (TTM)41.46%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q57.14%

Revenue 1Y (TTM)-9.24%

Revenue growth 3Y125.7%

Revenue growth 5YN/A

Revenue growth Q2Q-13.56%

3.2 Future

Based on estimates for the next years, DM will show a very strong growth in Earnings Per Share. The EPS will grow by 26.47% on average per year.

DM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.

EPS Next Y37.05%

EPS Next 2Y26.47%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year0.11%

Revenue Next 2Y5.25%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DM. In the last year negative earnings were reported.

Also next year DM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

A more expensive valuation may be justified as DM's earnings are expected to grow with 26.47% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y26.47%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for DM!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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DESKTOP METAL INC-A

NYSE:DM (5/16/2024, 7:04:00 PM)

After market: 0.598 +0 (+0.64%)

0.5942

-0.03 (-4.88%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryMachinery

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap196.19M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-70.58%
ROE	-133.77%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	N/A
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.41

Health

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	3.08
Quick Ratio	1.9
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)41.46%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y37.05%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-9.24%

Revenue growth 3Y125.7%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

DESKTOP METAL INC-A (DM)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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