stratasys: 3d industry\'s top dog is innovative and undervalued
Stratasys (NASDAQ:SSYS) It is a 3D printing company operating in the computer peripheral equipment industry. We recently started reporting on the company, the latest developments in the 3D printing industry and stratasy business. Shares in the industry suffered heavy losses in late November and fell sharply. Since then, valuations have been declining and investors remain cautious about the industry as a whole. Nevertheless, thanks to the acquisition of Objet and MakerBot, Stratasys\'s performance in the third quarter was impressive. The company raised revenue guidance to about $470 this year. $0. 49 billion and renewed EPS guidance of $1. 75-1. 90 (non-GAAP). This means revenue is growing at a compound rate of 33% (2011-2013). Reuters reported that the company expects revenue of $0. 66 billion. It was $0. 68 billion in 2014, surpassing analysts\' estimates of about $0. 656 billion. The company expects earnings of $2. 15-$2. $25 per share does not meet analysts\' expectations of $2. According to Thomson Reuters, 33 per share. However, earnings per share are expected to grow by 22% per cent compared to the fiscal year 2013. Color Multi- Material PrinterStratasys recently announced the launch of the new Objet500 connecx3 color multi 3D printer. The company claims that this is the only printer in the industry that combines colors with multiple materials. Designed for professionals like designers, engineers and manufacturers, this printer is used for prototyping and functional testing. \"I believe our new Objet500 connecx3 color is much more The material 3D Printer will change the way our customers design, design and manufacture new products. In general, and especially with the connecx technology, we will continue to push for what can happen in the 3D world. David Reis, CEO of Stratasys, said. Compare this model to the previous one, in addition to the added material support, the most important thing is the color option, and we can see similar specifications. The thickness of the layer is the same as the previous model I. e. 16 micron because the same bunching printing technology is used by both printers. In our view, this addition is not expected to be any different, as color support is not an important factor to consider in prototyping. However, we do see some benefits of color for functional testing as engineers can print objects close to the finished product. Color is basically beneficial for mass consumers and desktop printers, since this printer is too expensive for consumers, we do not see much impact in the prototype industry; Especially compared to the old model, it is more expensive. Nevertheless, the ability to print color objects enables Stratasys to print finished products with a thickness of 16 microns for a smooth finish. This printer takes a step forward from prototyping to printing finished products, which could be a huge positive factor for Stratasys in the long run. Stratasys South Korea Stratasys Asia Pacific announced the signing of contracts with its channel partner Sysopt engineering to purchase certain assets, including customer service contracts and inventory, to expand its presence in South Korea. Upon completion of the transaction, the assets will be allocated to the newly established subsidiary Stratasys Korea. \"We believe Korea is a strategic market with many leading innovative companies. 3D printing applications have been growing rapidly in many vertical industries. Jonathan Jaglom, managing director, APJ Stratasys said: \"Our localized and expanded team plans to lay a solid foundation for supporting needs and customers, improving responsiveness and operational efficiency . \". This development has expanded the reach of Stratasys to enable it to take advantage of the Korean market. ActivityMakerBot of MakerBot is the business unit of Stratasys for consumers. It offers printers to consumers, starting at about $2200. MakerBot has an organized ecosystem that includes 3D printers, replicators, Thingiverse ( A design sharing website), Digitizer (a 3D scanner) Retail and digital stores for MakerWare software and MakerBot; Basically, everything a good ecosystem must have. Consumer 3D printing is expected to grow in the next few years, and Stratasys can take advantage of this growth through Makerbot. The 3D system offers a strong competition with its Cubify 3D printer and its own ecosystem package. Therefore, consumer 3D printing will face fierce competition, and both companies have room for expansion given the good growth prospects. Stratasys has recently been very active in consumer printing through MakerBot. Below is an analysis of major developments related to MakerBot: strengthening the ecosystem MakerBot has also entered into distribution and sales agreements with the technology retailer\'s micro-Center store. Under the agreement, Makerbot will sell its desktop printers, scanners and filaments at 25 MicroCenter stores in the United States. This is an important development because simplifying distribution is the key to future success. By making its printers available on the market at any time, MakerBot has effectively raised awareness of its products, because from the customer\'s point of view, physical analysis of the products in the store ( Not online) It is a better experience that may stimulate the growth rate of customers. MakerBot recently introduced six new PLA fiber colors. This extends the total color combination to 23 PLA filament options. MakerBot PLA filament is a bio-plastic derived from corn and does not contain heavy metals, O-benzene ester or BPA. Each filament color is 100-micron and 200- The micron layer resolution on the MakerBot Replicator 2 desktop 3D printer to verify that the filament will perform all the features provided by the MakerWare software and slice and print reliably. MakerBot believes that MakerBot PLA filament is the best, safest and most consistent filament for MakerBot desktop 3D printer. Depending on the color, the 1 kg spool of the new MakerBot PLA filament will be retail for $48 to $65. Compared with competitors, the increase in color makes consumer 3D printer products more attractive. However, if the company wants to have a significant impact on the market, price and ease of use should be a priority for the company, because relatively cheap printers and materials are favored by consumers, even if there are some color shortcomings. Ease of use and availability of online design are also key success factors in the consumer industry. Makerbot\'s new color product does give it a competitive advantage, but it is not a decisive advantage, and the consumer industry can still control it. MakerBot has launched 3D printing services at retail stores in New York, Boston and Greenwich. Consumers can bring their own files (. STL, . OBJ or on USB) MakerBot will print the design. At the moment, this product has the potential for future growth as it allows consumers to get a 3D printing experience without buying a complete system. In this way, the high cost barrier of 3D printing is eliminated, and we believe that this development will benefit Stratasys. The company currently has only three stores, but as the number of stores increases, the demand for 3D printing will also increase, which may be a viable revenue-generating activity for Stratasys. The acquisition of Objet seems to have paid off for Stratasys. The company observed an accelerated adoption of its Objet30 orthobdesk 3D printer. According to Stratasys, Objet30 Portal desk is a cost-effective, easy-to-use desktop system Effective entry point for digital dentistry. Dental Laboratories of any size can now effectively produce stone models, orthodontic appliances, delivery and positioning trays, holders, and surgical guidelines. \"The Objet30 orthobdesk 3D printer helps to shorten the delivery time of laboratory services for Brazilian customers; I definitely think it\'s a game. \"The doctor explained. Bruno gribel, CEO of Compass3D Brazil. \"Objet30 orthobdesk enables the laboratory to create accurate, smooth orthodontic models more easily than ever before. \"Michael Wright, Lab Manager at the Audio Lab, said The reduction in delivery time, accuracy and ease of modeling is a feature that distinguishes this printer from traditional modeling methods in dentistry. We believe that the dental industry is focused on 3D printing companies and neighbors- Stratasys\'s modeling equipment is on the right track. Objet Stratasys \'- In recent years, the Dental 3D printer series has received various awards, including the dental consultant 2013 award for top innovative equipment and the 2011 reader selection award for dental laboratory products. Conclusion The basis of Stratasys is healthy and has potential for development. 3D systems remain a major player in the industry, with Stratasys positioned to expand in the consumer and consumer markets. Recent Activities of MakerBot, including the launch of on- This will help companies improve their position in the consumer market. As far as the prosumer market is concerned, the company has expanded its business through Objet30 orthobdesk, which is on- Demand finished segment. Stratasys\'s growing focus on the prosumer industry will be a big growth factor for the next quarter, which makes it more advantageous than companies that focus solely on consumer printing. Once the cost barriers are removed from the industry, the company\'s growing ecosystem may prove to be a dominant factor. 3D printing is an industry with high growth prospects, and Stratasys is in a good position in this growth. Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours. This article was written by myself and expressed my views. I received no compensation ( In addition to Seeking Alpha). I have no business relationship with any stock company mentioned in this article. Supplementary disclosure: the equity change is a team of analysts. This article was written by our technical analysts. We have not received compensation for this article ( In addition to Seeking Alpha) , We have no business relationship with any stock company mentioned in this article.