Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why ExOne Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, three-dimensional printer maker ExOne (NASDAQ: XONE  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at ExOne and see what CAPS investors are saying about the stock right now.

ExOne facts

Headquarters (Founded)

Irwin, Pa. (2005)

Market Cap

$347.9 million


Industrial machinery

Trailing-12-Month Revenue

$18.6 million


Chairman/CEO Kent Rockwell
President/COO David Burns

Trailing-12-Month Operating Margin



$3.5 million / $24.4 million


3D Systems (NYSE: DDD  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 22% of the 81 members who have rated ExOne believe the stock will underperform the S&P 500 going forward.

Just this past week, one of those Fools, All-Star 4Foolz, touched on the stock's seemingly unsustainable price run:

The stock just IPO'd and the 3D printing euphoria took it away! I think this is a great short here. ExOne is a small company based in PA that just went public, surely trying to ride the 3D printing craze. ... At the IPO price, they were selling at 10+ times sales. At the current price 80% higher, that number is at 20x sales. The company is not profitable. In fact, their losses keep growing year over year. ... Lots of red flags here. I am certain there will be a lot more equity dilution coming down the road at much lower prices.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 18, 2013, at 10:40 AM, samirpatel0001 wrote:

    Understand that the company is small. I think they own a lot of the patents in the technology. I believe Exone owns the patents that allows them to print in 3D with metal. I can only see them making money if this is true. They also can do ceramic or hold the patents to that as well. They should grow with their own machines or royalties with their patents by other companies. TESLA trying out one of their machines? Anyone else with more information regarding this company?

  • Report this Comment On February 18, 2013, at 11:30 AM, stomp725 wrote:

    A stock broker I spoke to last year called DDD overvalued at $24 a share too... glad I didn't listen to this "conventional wisdom". 3D printing is going to change everyone's life; companies like this may not be profitable now because of the enormous R&D they're putting in ahead of the curve, but just you wait.

  • Report this Comment On February 19, 2013, at 7:37 AM, KCAlbak wrote:

    Stomp725 makes one point, but more important is what products are marketed and the revenues they produce. A single million dollar Exone machine marketed is equivalent to selling 715 3D "consumer-oriented" models. Much of what 3D sells are 'toys' for home and office use, much like the first personal computer being able to store "2000 recipes!".

    I found two firms that bought these plastic 3D printers. Neither was using them.

    Both said the raw materials cost 50X what normal plastic stock would cost, and reverted to simple machining of cheap plastic stock.

    More importantly, the real growth will be in metal alloy parts, something much more expensive to machine accurately or while producing metal waste. The only two public companies that can do this are Swedish Arcam (up 40% in two weeks, and holding), and ExOne.

    The second question arises around size. Large, metal-alloy, one-of-a-kind parts are hugely expensive to manufacture conventionally by skilled machinists working overtime for days on a single large part. The potential revenue for an alternative that is both cheaper and less wasteful is enormous.

    The one unaddressed fact is that operating these machine takes a fairly high skill level. Having a service department with these skills to operate their own equipment can be prohibitive. That means the service end of companies like Exone using their own equipment with a trained staff could mean the real profit is in making the parts for the customer, rather than just selling them the machine (and materials). This revenue source will equal or surpass sales of machines, at least in the next few years.

    From this revenue perspective, the real potential is not DDD and SSYS, but XONE, AMAVF, and those privately-held companies that are burgeoning right now. K. C. Albak

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2260395, ~/Articles/ArticleHandler.aspx, 9/25/2016 3:36:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
DDD $16.40 Down -0.24 -1.44%
3D Systems CAPS Rating: ****
SSYS $22.03 Down -0.42 -1.87%
Stratasys CAPS Rating: ****