Materialise NV (NASDAQ:MTLS) Financial Performance and Industry Comparison

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 competes with other firms in the 3D printing and technology sectors, such as Proto Labs, Inc. and Stratasys Ltd.

In evaluating Materialise NV's financial performance, the Return on Invested Capital (ROIC) is a key metric. With an ROIC of 1.95%, Materialise is not generating returns that exceed its Weighted Average Cost of Capital (WACC) of 10.65%. This results in a ROIC to WACC ratio of 0.18, indicating inefficiency in using its capital to generate returns.

When comparing Materialise NV to its peers, Proto Labs, Inc. (PRLB) has a slightly lower ROIC of 1.69% and a WACC of 10.33%, resulting in a ROIC to WACC ratio of 0.16. Although Proto Labs is closer to covering its cost of capital, it still falls short, similar to Materialise.

Veracyte, Inc. (VCYT) and Stratasys Ltd. (SSYS) also struggle with their ROIC to WACC ratios, at 0.13 and -0.79 respectively. Veracyte's ROIC of 1.79% is overshadowed by a high WACC of 13.79%, while Stratasys faces a negative ROIC of -8.86% against a WACC of 11.22%, highlighting significant inefficiencies.

2U, Inc. (TWOU) and Twist Bioscience Corporation (TWST) show even more concerning figures, with ROICs of -55.53% and -37.51% respectively, and WACCs of 7.38% and 14.83%. Their ROIC to WACC ratios of -7.52 and -2.53 indicate substantial challenges in generating returns that cover their cost of capital.