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DESKTOP METAL INC-A (DM) Stock Fundamental Analysis

NYSE:DM - New York Stock Exchange, Inc. - US25058X3035 - Common Stock - Currency: USD

2.5  -0.01 (-0.4%)

After market: 2.5 0 (0%)

Fundamental Rating

2

DM gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 128 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.


Dividend Valuation Growth Profitability Health

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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.
DM had negative earnings in 4 of the past 5 years.
In the past 5 years DM always reported negative operating cash flow.
DM Yearly Net Income VS EBIT VS OCF VS FCFDM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 -200M -400M -600M

1.2 Ratios

Looking at the Return On Assets, with a value of -133.55%, DM is doing worse than 95.20% of the companies in the same industry.
The Return On Equity of DM (-505.22%) is worse than 94.40% of its industry peers.
Industry RankSector Rank
ROA -133.55%
ROE -505.22%
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
DM Yearly ROA, ROE, ROICDM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -50 -100

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for DM so they could not be analyzed.
Industry RankSector 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
DM Yearly Profit, Operating, Gross MarginsDM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400 -500

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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.
Compared to 1 year ago, DM has more shares outstanding
DM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DM is higher compared to a year ago.
DM Yearly Shares OutstandingDM Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 100M 200M 300M
DM Yearly Total Debt VS Total AssetsDM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -10.47, we must say that DM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -10.47, DM is doing worse than 84.80% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that DM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.57, DM is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF N/A
Altman-Z -10.47
ROIC/WACCN/A
WACC9.61%
DM Yearly LT Debt VS Equity VS FCFDM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 2.34 indicates that DM has no problem at all paying its short term obligations.
DM has a Current ratio (2.34) which is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that DM should not have too much problems paying its short term obligations.
DM's Quick ratio of 1.02 is on the low side compared to the rest of the industry. DM is outperformed by 65.60% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.02
DM Yearly Current Assets VS Current LiabilitesDM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 36.07% over the past year.
DM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.97%.
The Revenue has been growing by 125.70% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)36.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.25%
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y125.7%
Revenue growth 5YN/A
Sales Q2Q%-14.84%

3.2 Future

The Earnings Per Share is expected to grow by 31.02% on average over the next years. This is a very strong growth
DM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.95% yearly.
EPS Next Y22.32%
EPS Next 2Y31.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.98%
Revenue Next 2Y-4.95%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DM Yearly Revenue VS EstimatesDM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
DM Yearly EPS VS EstimatesDM Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 -1 -2 -3 -4

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4. Valuation

4.1 Price/Earnings Ratio

DM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
DM Price Earnings VS Forward Price EarningsDM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DM Per share dataDM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

A more expensive valuation may be justified as DM's earnings are expected to grow with 31.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.02%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

DM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DESKTOP METAL INC-A

NYSE:DM (2/12/2025, 8:06:51 PM)

After market: 2.5 0 (0%)

2.5

-0.01 (-0.4%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-31 2024-10-31/dmh
Earnings (Next)N/A N/A
Inst Owners39.21%
Inst Owner Change-20.22%
Ins Owners27.1%
Ins Owner Change0.04%
Market Cap83.35M
Analysts42
Price Target5.1 (104%)
Short Float %12.23%
Short Ratio8.52
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.81%
Min EPS beat(2)-18.32%
Max EPS beat(2)-11.3%
EPS beat(4)2
Avg EPS beat(4)7.81%
Min EPS beat(4)-18.32%
Max EPS beat(4)41.75%
EPS beat(8)5
Avg EPS beat(8)1.32%
EPS beat(12)6
Avg EPS beat(12)-3.77%
EPS beat(16)8
Avg EPS beat(16)4.39%
Revenue beat(2)0
Avg Revenue beat(2)-15.19%
Min Revenue beat(2)-17.65%
Max Revenue beat(2)-12.73%
Revenue beat(4)0
Avg Revenue beat(4)-8.45%
Min Revenue beat(4)-17.65%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-8.08%
Revenue beat(12)4
Avg Revenue beat(12)-6.13%
Revenue beat(16)6
Avg Revenue beat(16)0.15%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.99%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.5
P/FCF N/A
P/OCF N/A
P/B 1.15
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.79
EYN/A
EPS(NY)-0.68
Fwd EYN/A
FCF(TTM)-2.32
FCFYN/A
OCF(TTM)-2.3
OCFYN/A
SpS5.05
BVpS2.17
TBVpS-0.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -133.55%
ROE -505.22%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score2
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 0.74%
Cap/Sales 0.51%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.34
Quick Ratio 1.02
Altman-Z -10.47
F-Score2
WACC9.61%
ROIC/WACCN/A
Cap/Depr(3y)48.05%
Cap/Depr(5y)N/A
Cap/Sales(3y)10.89%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.25%
EPS Next Y22.32%
EPS Next 2Y31.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.97%
Revenue growth 3Y125.7%
Revenue growth 5YN/A
Sales Q2Q%-14.84%
Revenue Next Year-14.98%
Revenue Next 2Y-4.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year67.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y62.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.04%
OCF growth 3YN/A
OCF growth 5YN/A