Does The ExOne IPO Offer Any Value?
After a 47% gain on the opening day and another huge follow-on gain Friday, does ExOne (XONE) offer any value now? First, investors need to understand that the company competes in the ultra hot 3D printing sector with the likes of 3D Systems (DDD) and Stratasys (SSYS). Second, the company is a throw back to the old technology IPOs with a revenue base of only $30M in 2012.
The company focuses on manufacturing and selling 3D printing machines for industrial customers and printing products to specification for customers using in-house 3D printing machines. The company has Production Service Centers (PSCs) located in the United States, Germany and Japan. It also supplies consumables and replacement parts for the machines to print products.
The stock provides the unique opportunity of investing in a very small company prior to massive growth. While ExOne priced with a market value of roughly $240M, both 3D Systems and Stratasys already approach the $4B mark. While market cap is no sure sign of future gains, it is much easier to grow from $300M to $3B than from $3B to $30B.
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