Nano Dimension Ltd (NASDAQ:NNDM) is a multi-national business which develops intelligent machines for the production of Additively Manufactured Electronics (AME). Furthermore, this industry in which Nano Dimensions occupies is considered a specialised niche within the 3D printing industry. The companies stock has seen bullish movement due to strong revenue performance from the Q4 2020 earnings results. NNDM beat their revenue estimations by 97%, driving the stock price up 17%. This article will breakdown everything investors need to know about Nano Dimensions stock forecast for 2021 and beyond.
Table of contents
Nano Dimension’s Industry Analysis
Firstly, 3D printing is predicted to be one of the most prominent industries in the transition to the “fourth industrial revolution”. The industry is projected to experience explosive growth with a value exceeding $40 Billion USD by 2024. The industry is estimated to grow at an annual growth rate of 26.4% within the four-year horizon. Furthermore, benefits of 3D printing include the ability to utilize many different materials depending on the application. In addition, 3D printing operates within a wide array of sectors including the automotive, medical, military and food manufacturing industries.
Revenue Performance for Nano Dimension
Firstly, in the most recent Q4 earnings NNDM beat their revenue estimates by 97% resulting in the actual revenue to be $1.97 Million. The total revenue for the fiscal year just fell short of $3.4 million, only half of the revenue the company earned in 2019. Nano Dimensions advised the decline in revenue YOY was due to decreased sales as a result of COVID-19. Furthermore, the Net loss for 2020 was $48,494,000 in comparison to $8,353,000 in 2019.
“We recognized revenues of $3.4 million, which is lower than last year due to the effect of the COVID-19 pandemic, but better than what we originally expected. We are focusing our efforts on fulfilling our growth plan, both internal through product development and R&D efforts, as well as through external M&A activities.”said Yael Sandler, Chief Financial Officer of Nano Dimension
Revenue forecasts for Nano Dimension
Revenue estimates for the current year can be seen to reach $5 Million, resulting in an increase of 47.10% YOY. Furthermore, the projected revenue for 2022 is seen to skyrocket to $41.2 Million, resulting in an increase of 724% from 2021. The short term outlook over the next 2 years remains strong, with revenue drivers to be within sales recovery and dividends (reward) from a vastly growing niche industry.
Firstly, one of the largest stakeholders of Nano Dimension is Ark investment Management LLC. In December 2020 ARK reported an 1899.94% increase in ownership equating to a position change of 7.97 Million shares. ARK as of current holds 8.393 Million shares with a disclosed value of approximately $76.379 Million USD. Furthermore, this calculates a 3.37% ownership of the business.
Summary of Nano Dimensions stock outlook
In conclusion, Nano Dimension is currently seeing positive revenue forecasts and a significant improvement in its balance sheet. Furthermore, its niche industry is growing at a rapid rate, of which bulls are confident the company can soak up this growth. However, the road ahead looks to be a long haul according to the CEO. “If you are not patient and waiting to see something in a quarter or two, don’t invest in Nano Dimension” said CEO Yoav Stern in a statement.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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