3D printing was once supposed to change everything.
A little more than a decade ago, investors treated companies like 3D Systems (NYSE: DDD) as the future of manufacturing. At the time, it seemed as if the technology would make production faster, cheaper, and more flexible.
Then reality hit.
Growth slowed. Losses piled up. After years of hype, 3D Systems became a much harder stock to love.
But lately, investors have started to take notice again.
The stock traded below $1.40 last summer. Today, shares have more than doubled.
The business is showing signs of life too.
3D Systems sells 3D printers, materials, and software that are used in healthcare, aerospace, defense, and other industrial markets.
Its latest results were mixed, but there were some clear bright spots.
In its second fiscal quarter, revenue came in at $94.6 million. That was roughly flat from $94.8 million a year ago, but after adjusting for businesses the company sold, revenue rose 1.4%.
Printer demand also picked up, with new printer sales posting double-digit growth in both metal and polymer systems. Some of the company’s key markets are growing even faster, including medical technology and aerospace/defense, which each grew more than 20% during the quarter.
So the turnaround case is not indefensible.
Costs are coming down as well. In the first half of 2026, the company used $14.1 million in operating cash. That was a big improvement from the $59.6 million it used during the same period last year.
The question now is whether the stock has already moved too far ahead of that improvement. And that’s where The Value Meter comes in.
3D Systems has an enterprise value-to-net asset value (EV/NAV) ratio of 2.36. The median stock in the Value Meter universe sits at 3.06.
At first glance, that makes the stock look cheap. Investors are paying less for the company’s net assets than they are for the typical stock in our universe.
But assets only matter if the business can put them to work. That’s where the picture gets much weaker. 3D Systems’ 12-quarter average quarterly free cash flow-to-net asset value is -7.75%. The universe median is 2.49%.
That metric tells us how much cash the business has produced relative to its assets. Clearly, the answer is not much. The company has burned cash over that three-year period, making the low EV/NAV less impressive.
There is one encouraging sign, however. 3D Systems’ year-over-year free cash flow growth consistency is 58.3%, compared with the 50.0% universe median. That means free cash flow improved from the same quarter a year earlier more often than it did for the typical stock.
That fits what we are seeing now: Cash burn has come down, costs have improved, and some end markets are growing.
But 3D Systems still has work to do before investors can say the turnaround is complete. The company is still using cash, and its broader sales growth remains modest. It also recently raised money by selling new shares, which diluted existing shareholders.
None of that means the stock is doomed. It just means the story around the stock is more optimistic than its financials can support.
The Value Meter rates 3D Systems as “Slightly Overvalued.”
What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.