A Look At 3D Systems (DDD) Valuation After Defense Tailwinds And MedTech Milestones

Why 3D Systems Is Back on Investor Radar

3D Systems (DDD) is drawing fresh attention after expanding its U.S. facilities, securing 510(k) clearance for its VSP Orthopedics platform, and advancing defense work supported by the National Defense Authorization Act.

See our latest analysis for 3D Systems.

These updates have arrived during a volatile stretch, with a 7 day share price return of 25.95% and a 30 day gain of 22.63% following a 90 day decline of 25.08%. At the same time, the 1 year total shareholder return of 28.53% and 5 year total shareholder return of 91.75% highlight that long term holders have experienced significant losses even as recent momentum has picked up.

If news around 3D printing and defense has caught your attention, it could be a good moment to see how 3D Systems compares with other aerospace and defense stocks.

With the share price still well below where many long term holders bought in, and trading 55% under the average analyst price target of US$3.63, the key question is whether this represents a reset entry point or if the market is already banking on future growth.

Most Popular Narrative: 35.7% Undervalued

With 3D Systems last closing at US$2.33 against a narrative fair value of US$3.63, the valuation hinges heavily on how its MedTech and manufacturing bets play out.

Demand for 3D Systems' healthcare solutions, particularly MedTech (personalized implants, trauma, and bone cancer treatments) and Dental (NextDent dentures), is benefitting from growing healthcare customization needs and rapid expansion of digital dentistry. These areas are poised to drive recurring, higher-margin service and product revenues as regulatory approvals expand globally, supporting both top-line and margin growth.

Read the complete narrative.

Curious how modest revenue expectations can still support a higher valuation? The narrative leans on margin repair, earnings normalization, and a future earnings multiple that is far from conservative. Want to see which profit assumptions and discount rate knit those pieces together?

Result: Fair Value of $3.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could be knocked off course if customer capital spending on new 3D printing capacity stays weak, or if restructuring efforts undercut R&D competitiveness.

Find out about the key risks to this 3D Systems narrative.

Build Your Own 3D Systems Narrative

If this storyline does not quite fit how you see 3D Systems, you can weigh the same data, adjust the assumptions, and Do it your way in under three minutes.

A great starting point for your 3D Systems research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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