3D Systems Corporation(NYSE:DDD) And Acquisitions


Dallas, Texas 03/13/2014 (FINANCIALSTRENDS) – 3D Systems Corporation(NYSE:DDD) as its name suggests is well on its way to becoming the 3D printing store for everything. For the company in its brief foray on the international scene has since acquired over 50 3D domain companies. With a presence across all the verticals, in this nascent industry, 3D Systems Corporation(NYSE:DDD) does want to holds its own.

However, analysts and investors alike raise some valid questions.

Will acquisitions relate to true value?

The spate of acquisitions though helping DDD move into multiple segments of this digital and new-sphere of printing industry is also seen as a company which lacks on a core valuation. The company cannot vouch for any core products of its own and is largely dependent on the wealth of programs that its affiliates and other companies offer. The current phase of revenue growth for the company is coming from the acquired products and does not indicate the organic product growth rate. The sales growth contributed by way of acquisitions, according to analysts is not a true measure of this company.

With industry looking to grow by nearly 20% from its 2012 position to 2021, the increase is by nearly $10.8 billion in the industry. The organic growth rate is thus far considered to be way above 20% and it is indeed satisfying that the 3D systems are gaining market share. The company also speaks of a spate of acquisitions. These indicate a highly sustainable approach and will led to growth in the long term.  By 2014, 3D systems will see growth by 30%, by way of organic growth and will be one of the major players in the emerging market.

3D Systems Corporation(NYSE:DDD)will remain a go to company for the likes of companies which wish to enter the steel and other metal printing market scape.