When 3D printing stock Voxeljet (VJET) first filed to go public, I wrote a post that said it was a “perfectly timed” IPO. Well, I may have underestimated things! Since hitting the market in mid-October, shares of VJET stock have increase five-fold.
Founded in 1999, Voxeljet is a pioneer of the space. And like other top-notch 3D printing stocks, VJET was smart to focus on the industrial market. Consider that some of the 3D printing company’s customers include Daimler (DDAIF), BMW (BAMXY), Ford (F) and 3M (MMM). Voxeljet not only sells machines to these companies, but also ongoing services and parts. As a result, there is often a nice ongoing revenue stream for VJET, especially as customers ramp up production.
VJET stock investors got evidence of this last week, when the company reported its third-quarter earnings. Revenues spiked 77% to 3.5 million euros, while Voxeljet earnings came to 0.11 euros per share, up from 0.03 euros per share in the same period a year ago. Of course, this kind of strong performance has become par for the course for 3D printing stocks. In the latest quarter, the revenue growth for DDD was nearly 50%, while SSYS was able to post a stunning 152% gain.
Still, investors in VJET stock were pleased. The 3D printing stock gained 13% in this morning’s trading.
But with all this hyper-growth, the big players in the 3D printing stocks universe have hit valuations that have reached nosebleed levels. For example, DDD stock is trading at 18 times sales and SSYS stock is at about 15 times sales. And as for VJET stock, it makes these valuations look quaint. Its multiple? 83 times sales.
In other words, investors in 3D printing stocks should be cautious. Keep in mind that VJET only sold three new and two used 3D printers in the latest quarter. So if there is a delay in just one order, the revenues could take a hit.
Besides, it does look like the rally in 3D printing stock is getting long in the tooth, and a pullback would be reasonable.
More on 3D Printing Stocks
- 3D printer Voxeljet: A perfectly timed IPO
- 3D printing stock Voxeljet roars onto the market
- NASA gets set to send first 3D printer to space
- Could Makerbot bring 3D printing mainstream?
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.