Materialise NV (NASDAQ:MTLS) Financial Performance Analysis

• Materialise NV (NASDAQ:MTLS) has an ROIC of 1.95%, indicating it does not generate returns above its cost of capital.
• Comparatively, peers like Proto Labs, Inc. (PRLB) and Stratasys Ltd. (SSYS) also struggle with ROIC below their WACC, highlighting a common challenge in the 3D printing sector.
• 2U, Inc. (TWOU) and Twist Bioscience Corporation (TWST) show significantly negative ROICs, underlining severe inefficiencies in value creation within their operations.

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's financial performance, the Return on Invested Capital (ROIC) is a key metric. Materialise has an ROIC of 1.95%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 10.69%. This indicates that the company is not generating returns that exceed its cost of capital, which is a concern for investors looking for value creation.

When comparing Materialise to its peers, Proto Labs, Inc. (PRLB) has a slightly lower ROIC of 1.69% and a WACC of 10.45%, resulting in a ROIC to WACC ratio of 0.16. Although Proto Labs has the highest ratio among the peers, it still falls short of the ideal ratio of 1, indicating that it too is not generating returns above its cost of capital.

Veracyte, Inc. (VCYT) and Stratasys Ltd. (SSYS) also show similar trends, with ROICs of 1.27% and -10.19% respectively, both below their WACC. This further highlights the challenge these companies face in generating sufficient returns to cover their cost of capital. Stratasys, in particular, has a negative ROIC to WACC ratio of -0.94, indicating significant inefficiencies.

2U, Inc. (TWOU) and Twist Bioscience Corporation (TWST) present even more concerning figures, with ROICs of -59.36% and -37.51% respectively. Their ROIC to WACC ratios of -8.04 and -2.43 suggest that these companies are far from achieving value creation, as their returns are well below their cost of capital.