Where To Invest In Rapid Prototyping?

The 3D Modeling/Rapid Prototyping (RP) research sector promises to change the world. The RP innovation allows for a design tool that greatly improves the product development cycle by allowing rapid creation of models for testing. Read this article for more information on the sector and leaders.

Unfortunately the concept has limited commercial production capabilities and material challenges. Over time, these will intrinsically become less and less of a problem. For now even though, several sectors just as aviation parts and medical devices can benefit greatly from the ability to RP. Not to mention, any wealthy person that wants to make their own iPhone case at home.

The company reported Q112 results that included 63% revenue growth and solid operating margins of 22%. Revenues only grew 47% to $0.25, nevertheless the company has been busy increasing innovation and development plus adding numerous acquisitions of printer developers and materials.

Forward PE of 23

With a forward PE of 23, the stock trades approximately in line with the expected growth rate. During not cheap, it isn't expensive and as a matter of fact provides a solid revenues profile unlike most of the recent IPOs in the hot sectors of social media and cloud computing.

This stock trades at a richer valuation than 3D Systems with a forward PE of over 30. The company as well only reported 30% revenue growth for Q112 during analysts only forecast 15% long term growth.

The recent announced merger with Objet is expected to launch Stratasys into a leadership position in the 3D Printing market. The combined company will rival the $1.5B market cap of 3D Systems along with the revenue size.

The company reported 34% revenue growth

The company reported 34% revenue growth and a solid 25.5% operating margin. At a forward PE of 29, the company trades in the range of its long term growth rate. With revenue expectations of around $127M for 2012, the company remains relatively small.

For prototype and low to moderate volume tooling, the company provides a drastically reduced lead time and cost. It offers the ability to deliver real injection molded parts as quickly as the then and there business day.