Materialise NV (NASDAQ:MTLS) is a company that specializes in 3D printing solutions, offering software and services to a variety of industries including healthcare, automotive, and aerospace. The company is headquartered in Belgium and has established itself as a key player in the 3D printing industry.
Its competitors include Proto Labs, Inc., Veracyte, Inc., Stratasys Ltd., 2U, Inc., and Twist Bioscience Corporation, each operating in different niches but sharing the commonality of innovative technology solutions. In evaluating Materialise NV’s financial performance, the Return on Invested Capital (ROIC) is a critical metric. With a ROIC of 1.95% and a Weighted Average Cost of Capital (WACC) of 10.74%, Materialise’s ROIC to WACC ratio stands at 0.18.
This indicates that the company is not currently generating returns that exceed its cost of capital, which is a concern for investors looking for efficient capital utilization. Comparatively, Proto Labs, Inc. (PRLB) has a ROIC of 1.69% and a WACC of 10.48%, resulting in a ROIC to WACC ratio of 0.16.
Although Proto Labs is slightly less efficient than Materialise in terms of this ratio, both companies are struggling to generate returns above their respective costs of capital. This suggests a broader challenge within the industry in achieving profitability. Veracyte, Inc. (VCYT) presents a similar scenario with a ROIC of 1.79% and a WACC of 13.94%, leading to a ROIC to WACC ratio of 0.13.
This further emphasizes the difficulty these companies face in generating sufficient returns. Stratasys Ltd. (SSYS), 2U, Inc. (TWOU), and Twist Bioscience Corporation (TWST) have negative ROIC to WACC ratios, highlighting even greater challenges in covering their cost of capital.