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Markforged Holding (MKFG)
NYSE:MKFG
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Markforged Holding
(NYSE:MKFG)
46Neutral
Markforged Holding (MKFG) vs. S&P 500 (SPY)
Market Cap
$95.48M
Dividend YieldN/A
Average Volume (3M)161.84K
Price to Earnings (P/E)―
Beta (1Y)2.61
Revenue Growth-12.48%
EPS Growth13.94%
CountryUS
Employees351
SectorTechnology
Sector Strength46
IndustryComputer Hardware
Share Statistics
EPS (TTM)-4.38
Shares Outstanding20,622,719
10 Day Avg. Volume316,061
30 Day Avg. Volume161,843
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside7.99% Upside
Rating ConsensusHold
Number of Analyst Covering2
Markforged Holding Business Overview & Revenue Model
Company DescriptionMarkforged Holding (MKFG) is a leading provider in the additive manufacturing industry, specializing in the development and production of industrial-grade 3D printers. The company is renowned for its innovative materials and software solutions, which enable businesses across various sectors such as aerospace, automotive, and manufacturing to produce high-quality, cost-effective parts on demand. Markforged's product offerings include metal and composite 3D printers, as well as a suite of proprietary materials designed for strength and durability.
How the Company Makes MoneyMarkforged Holding makes money primarily through the sale of its 3D printers and related hardware, which are tailored for industrial applications. A significant portion of its revenue is also derived from the sale of consumables, such as proprietary composite and metal materials that are used with its printers. Additionally, the company generates income from software subscriptions, which provide customers with advanced design capabilities and workflow management. Markforged maintains strategic partnerships with various industries to enhance its market reach and bolster its technology offerings, thereby contributing to its revenue growth. Furthermore, the company may engage in service and maintenance contracts to provide ongoing support for its products, creating an additional revenue stream.
Markforged Holding Financial Statement Overview
Summary
Markforged Holding faces significant financial headwinds. The company struggles with profitability and liquidity, reflected in negative net profit margins and cash flow challenges. The balance sheet shows moderate leverage, but declining equity poses risks to financial stability. Strategic improvements are necessary to enhance revenue growth and sustain long-term viability.Income Statement
Markforged Holding's income statement shows declining revenue with a negative growth rate from the previous period. Gross profit margin stands at 49.11% for TTM, indicating efficiency in managing production costs. However, the company struggles with profitability, reflected in a negative net profit margin of -101.21% and consistently negative EBIT and EBITDA margins, highlighting ongoing operational challenges.55
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.34, suggesting manageable leverage. However, stockholders' equity has been decreasing, impacting the equity ratio, which stands at 49.66%. Return on equity is negative at -89.73%, indicating unprofitable operations relative to shareholder investment. The balance between liabilities and equity is under strain, posing financial stability risks.60
Neutral
Cash Flow
Cash flow analysis shows a troubling trajectory with a negative free cash flow growth rate. The operating cash flow to net income ratio is favorable at 0.51, suggesting some efficiency in converting income to cash. However, consistently negative free cash flow to net income ratio highlights liquidity challenges and the need for external financing to sustain operations.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 86.89M | 93.78M | 100.96M | 91.22M | 71.85M | 72.55M | Gross Profit |
| 42.68M | 44.41M | 50.71M | 52.85M | 41.93M | 36.23M | EBIT |
| -68.50M | -111.38M | -87.08M | -61.04M | -17.74M | -30.74M | EBITDA |
| -78.97M | -98.46M | -23.35M | 5.65M | -15.94M | -29.38M | Net Income Common Stockholders |
| -87.91M | -103.57M | -25.39M | 3.85M | -17.98M | -31.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.77M | 116.85M | 167.88M | 288.60M | 58.72M | 59.77M | Total Assets |
| 0.00 | 247.95M | 345.89M | 337.31M | 89.60M | 93.27M | Total Debt |
| 0.00 | 43.14M | 48.63M | 0.00 | 5.02M | 0.00 | Net Debt |
| 59.77M | -73.72M | -75.61M | -288.60M | -53.69M | -59.77M | Total Liabilities |
| 0.00 | 86.34M | 93.39M | 93.14M | 165.07M | 13.89M | Stockholders Equity |
| 76.44M | 161.61M | 252.50M | 244.17M | -75.47M | 76.44M |
| Cash Flow | Free Cash Flow | ||||
| -48.15M | -52.49M | -84.94M | -49.49M | -7.10M | -35.44M | Operating Cash Flow |
| -44.83M | -48.90M | -73.52M | -45.70M | -6.46M | -30.67M | Investing Cash Flow |
| 25.81M | 42.10M | -90.90M | -3.79M | -522.00K | -4.63M | Financing Cash Flow |
| -1.18M | -520.00K | 1.55M | 279.38M | 5.93M | 81.19M |
Markforged Holding Technical Analysis
Positive
4.63
Price Trends
2.93
Positive
3.41
Positive
3.56
Positive
Market Momentum
0.34
Negative
85.02
Negative
97.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKFG, the sentiment is Positive. The current price of 4.63 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.93, and above the 200-day MA of 3.56, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 85.02 is Negative, neither overbought nor oversold. The STOCH value of 97.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKFG.
Markforged Holding Risk Analysis
Markforged Holding disclosed 78 risk factors in its most recent earnings report. Markforged Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Markforged Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $299.47M | 20.61 | 5.60% | ― | 4.24% | 100.00% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% | |
50 Neutral | $371.60M | ― | -84.78% | ― | -12.26% | -431.20% | |
49 Neutral | $734.34M | ― | -14.34% | ― | -8.79% | 5.32% | |
46 Neutral | $95.48M | ― | -65.46% | ― | -12.48% | 13.94% | |
38 Underperform | $161.37M | ― | -152.96% | ― | -14.97% | 22.83% |
* Technology Sector Average
Performance Comparison
MKFG
Markforged Holding
4.63
-3.91
-45.78%
DDD
3D Systems
2.15
-2.15
-50.00%
SSYS
Stratasys
10.28
-1.09
-9.59%
MTLS
Materialise
5.07
-0.25
-4.70%
DM
Desktop Metal
4.84
-3.68
-43.19%
Markforged Holding Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 88.98% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong execution, product innovation, and cost reduction initiatives, which were positive aspects. However, these were offset by a significant revenue decline, ongoing legal issues, and financial challenges, resulting in a mixed outlook.Highlights
Strong Execution and Product Innovation
The company demonstrated strong execution in Q2 and received positive market feedback on new products like FX10, FX20, PX100, and new materials Onyx FR and Vega.
Cost Reduction Initiative
Implementation of a $25 million cost reduction initiative expected to reduce annual operating expenses run rate to approximately $70 million in 2025.
Gross Margin Improvement
Gross margins for Q2 2024 were 51.9%, up 3.6% from the second quarter of 2023, driven by operational efficiencies and product mix.
Successful Product Launch
Successfully shipped the first PX100 in Q2, marking a significant milestone with potential for growth in highly regulated markets such as automotive, medical, aerospace, and luxury goods.
Reduced Operating Expenses
Operating expenses were $23.3 million in Q2 2024, down from $26.6 million in Q2 2023, showing improvement due to ongoing cost reduction efforts.
Lowlights
Revenue Decline
Revenue for Q2 2024 was $21.7 million, down from $25.4 million in Q2 2023, largely driven by lower system revenue due to tough market conditions with high interest rates.
Ongoing Legal Issues
Involvement in Continuous Composites lawsuit with significant restricted cash allocations and potential future financial impact from royalty claims.
Net Cash Reduction
Cash and cash equivalents, including restricted cash, were $93.9 million at the end of Q2, down from $113.3 million at the end of Q1.
Operational Loss
Operating loss for Q2 2024 was $12 million, although improved from $14.3 million in Q2 2023.
Company Guidance
During the Q2 2024 earnings call for Markforged Holding Corporation, significant guidance was provided for the remainder of the year. The company announced a $25 million cost reduction initiative aimed at reducing annual operating expenses to approximately $70 million by 2025. Revenue for Q2 2024 was reported at $21.7 million, a decrease from $25.4 million in Q2 2023, primarily due to lower system revenue influenced by tough market conditions with high interest rates. However, gross margins improved to 51.9%, up from 48.3% in the previous year, driven by operational efficiencies and product mix. The company also highlighted an anticipated revenue range of $90 million to $95 million for fiscal year 2024, with expectations of low single-digit quarter-over-quarter growth in Q3 and a return to double-digit year-over-year growth in the second half, propelled by new product sales, particularly the FX10. Furthermore, Markforged expects non-GAAP gross margins to be in the upper range of their previous 48% to 50% guidance and projects a non-GAAP operating loss between $42.5 million and $47 million for the year.Markforged Holding Corporate Events
M&A TransactionsLegal Proceedings
Markforged Faces Legal Challenge Amid Pending Merger
Negative
Jan 2, 2025
Markforged Holding Corporation has announced a complaint filed against it in connection with its pending merger with Nano Dimension Ltd., where it is named as a defendant. The complaint, filed by Desktop Metal, Inc., alleges Nano breached terms of a merger agreement with Desktop Metal, potentially affecting the merger with Markforged. Despite the legal challenge, Markforged asserts that the claims against it lack merit and plans to defend vigorously.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.