Last close As at 05/08/2026
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Research: TMT
Nano Dimension reported Q223 revenue growth of 33% year-on-year and maintained its adjusted EBITDA at a similar level to Q123, reflecting continued investment in R&D. No longer looking to acquire a majority stake in Stratasys, the company is considering its options regarding its 14% holding and continues to seek alternative targets, recently making a small technology acquisition in the design software market.
Nano Dimension |
Strengthening the product portfolio
Technology |
Spotlight – Update
23 August 2023 |
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Nano Dimension is a research client of Edison Investment Research Limited |
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Nano Dimension reported Q223 revenue growth of 33% year-on-year and maintained its adjusted EBITDA at a similar level to Q123, reflecting continued investment in R&D. No longer looking to acquire a majority stake in Stratasys, the company is considering its options regarding its 14% holding and continues to seek alternative targets, recently making a small technology acquisition in the design software market.
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Historical performance
Source: Company data. Note: *PBT and PAT are normalised, excluding amortisation of acquired intangibles, exceptionals and share-based payments. |
Q223 results show steady progress
The company reported Q223 revenue of $14.7m, essentially flat q-o-q and 33% higher y-o-y, and an adjusted gross margin of 47.5%. EBITDA of -$19.8m included a revaluation gain from the company’s stake in Stratasys; adjusted EBITDA of $23.5m was similar to Q123 (-$23.7m). At the end of H123, the company had net cash of $944m and its stake in Stratasys was worth $172m.
Positive order momentum; small acquisition
Nano Dimension recently announced its largest-ever purchase order, to be shipped in Q3 and Q423, to a new customer in the aerospace and aviation market. In August, the company acquired the technology and intellectual property of Additive Flow, adding design simulation and optimisation expertise. The core technology will be integrated into Nano Dimension’s proprietary design package suite, FLIGHT.
Focused on upcoming AGM
Nano Dimension’s AGM is scheduled for 7 September. The company’s largest shareholder, Murchinson, has proposed several resolutions calling for the nine board members to be replaced with its proposed candidates. Nano Dimension’s CEO has confirmed he will resign if this happens.
Valuation: Well-funded for M&A strategy
Nano Dimension has $944m net cash on the balance sheet. Now that it is no longer bidding to acquire Stratasys, management has confirmed its intention to seek alternative acquisition opportunities. Consequently, it is not valid to carry out a valuation based on a comparison of market capitalisation/historical sales multiples because Nano Dimension’s revenues are likely to grow much faster than those of its listed peers. The shares are currently trading at a significant discount (c 33%) to Nano Dimension’s net cash balance plus the current value of its stake in Stratasys ($141m as at 22 August).
Review of Q223 results
In the table below, we summarise the performance of Nano Dimension in Q223 and H123.
Exhibit 1: Nano Dimension Q223 and H123 results highlights
Q223 |
Q222 |
H123 |
H122 |
||
Revenue |
$m |
14.7 |
11.1 |
29.7 |
21.5 |
Gross profit |
$m |
6.5 |
3.6 |
13.1 |
4.6 |
Adj. gross profit |
$m |
7.0 |
4.0 |
14.1 |
8.1 |
EBITDA |
$m |
(19.8) |
(41.4) |
(7.9) |
(73.0) |
Adjusted EBITDA |
$m |
(23.5) |
(21.3) |
(47.2) |
(40.5) |
Operating loss |
$m |
(30.4) |
(32.1) |
(61.6) |
(65.0) |
Profit/(loss) before tax |
$m |
(9.3) |
(40.3) |
12.7 |
(74.1) |
Profit/(loss) after tax |
$m |
(9.4) |
(40.0) |
12.6 |
(73.3) |
Net income after minority interest |
$m |
(9.1) |
(39.7) |
13.1 |
(72.8) |
Net cash including lease liabilities |
$m |
943.6 |
1274.1 |
943.6 |
1274.1 |
Revenue growth y-o-y |
32.8% |
1268.8% |
37.9% |
1227.4% |
|
Revenue growth q-o-q/h-o-h |
-1.5% |
6.4% |
34.4% |
142.7% |
|
Gross margin |
44.1% |
32.2% |
44.0% |
21.3% |
|
Adjusted gross margin* |
47.5% |
35.6% |
47.3% |
37.8% |
Source: Nano Dimension. Note: *Excludes amortisation and share-based payments.
Q223 revenue was essentially flat q-o-q and 33% higher y-o-y. H123 revenue was 38% higher y-o-y and 34% higher h-o-h. Adjusted gross margin improved by 11.9pp y-o-y and 0.4pp q-o-q to 47.5% in Q223. Q223 EBITDA of -$19.8m included the gain on the company’s stake in Stratasys of $11.9m (see below). Adjusted EBITDA, which excludes FX gains/losses, share-based payments and revaluation of assets and liabilities, was -$23.5m compared to -$23.7m in Q123 and -$21.3m in Q222. The company noted that it spent $1.9m on legal and proxy-related costs in Q223; we would expect further costs of this nature to be incurred in Q323 as the company prepares for its AGM in September.
Net cash at the end of Q223 was $943.6m, down $30.3m from Q123. The company used $28.2m cash in operating activities, received $6.7m in interest, spent $3.2m on capex, $5.3m on contingent consideration and $1.3m buying back shares.
Investment in Stratasys under consideration
The value of the company’s 14.1% stake in Stratasys increased from $160.3m at the end of Q123 to $172.2m by the end of Q223 as its share price increased from $16.53 to $17.76. The Stratasys share is currently trading at $14.55, valuing Nano Dimension’s stake at $140.6m. After the withdrawal of the company’s partial tender offer for Stratasys, management is considering options for its stake in Stratasys, including selling on the open market.
Share buyback plan announced
On 7 August, the company announced that its board had authorised a share buyback programme totalling up to $227.5m. The plan is subject to the approval of the Israeli court which we expect to happen in the next couple of months.
Business update
Adding design simulation and optimisation capabilities
On 14 August, the company announced it had acquired the technology and intellectual property of Additive Flow, a UK-based supplier of 3D design simulation and optimisation software. The software specialises in mechanical, thermal and thermo-mechanical properties as well as frequency and fatigue across a range of materials and processes. The product addresses design, production and quality decisions while optimising for cost, weight, manufacturing productivity and manufacturing yield. The company has customers in advanced optics and optoelectronics, aerospace and defence, semiconductors, advanced energy and electronics. Additive Flow’s core technology will be integrated into Nano Dimension’s proprietary design package suite, FLIGHT. The company did not disclose any financial details due to commercial sensitivity.
Contract wins include largest-ever order
In Q223, the company made sales to a space exploration equipment company, a satellite equipment innovator, a national defence agency, a world-leading nuclear research group and one of the world’s largest computer manufacturers.
Having previously noted customer interest in its DeepCube technology, in July the company signed an agreement with a large multinational electronics company to leverage DeepCube’s deep learning-based AI technology. It also entered into a memorandum of understanding with an industrial company and is in discussions with other potential customers.
In August, the company announced it had received its largest-ever purchase order, in terms of number of systems (six) and by value. It noted that this was for a new customer who is active in the aerospace and aviation industry. The company expects to deliver the systems in Q3 and Q423.
Upcoming AGM
Nano Dimension has scheduled its AGM for 7 September. Murchinson and related parties, holding a combined 11.9% stake in Nano Dimension, have proposed several resolutions:
1)
To replace the three Class III directors who are up for re-election with directors proposed by Murchinson (requires a simple majority of votes in person or by proxy at the meeting).
2)
To replace the six other Nano Dimension directors (ie those not up for re-election) with a slate selected by Murchinson (requires a special majority of votes in person or by proxy, ie 70%).
3)
To amend the Articles of Association to declassify the board, ie to change directors from serving staggered terms to being up for re-election each year (requires a special majority).
The company’s CEO has confirmed he will resign if the board is replaced with Murchinson’s candidates.
Exhibit 2: Financial summary
$m |
2019 |
2020 |
2021 |
2022 |
|
Year-end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
|
PROFIT & LOSS |
|
|
|
|
|
Revenue |
|
7.1 |
3.4 |
10.5 |
43.6 |
Cost of Sales (including amortisation of capitalised IP) |
(5.1) |
(2.3) |
(9.4) |
(29.6) |
|
Gross Profit |
2.0 |
1.1 |
1.1 |
14.1 |
|
EBITDA |
|
(11.7) |
(12.6) |
(38.4) |
(88.8) |
Operating profit (before amort. and excepts.) |
|
(14.4) |
(15.2) |
(48.3) |
(98.5) |
Intangible Amortisation |
0.0 |
0.0 |
0.0 |
0.0 |
|
Exceptionals |
0.0 |
0.0 |
(145.2) |
(40.4) |
|
Share-based payments |
(0.4) |
(20.5) |
(29.8) |
(32.6) |
|
Operating Profit |
(14.8) |
(35.7) |
(223.2) |
(171.5) |
|
Net Interest |
6.5 |
0.2 |
3.8 |
2.2 |
|
Exceptionals |
0.0 |
(13.0) |
13.7 |
(58.7) |
|
Profit Before Tax (norm) |
|
(7.9) |
(15.0) |
(44.5) |
(96.4) |
Profit Before Tax (FRS 3) |
|
(8.4) |
(48.5) |
(205.7) |
(228.0) |
Tax |
0.0 |
0.0 |
4.9 |
(0.3) |
|
Profit After Tax (norm) |
(7.9) |
(15.0) |
(44.5) |
(96.4) |
|
Profit After Tax (FRS 3) |
(8.4) |
(48.5) |
(200.8) |
(228.3) |
|
Average Number of Shares Outstanding (m) |
3.5* |
42.9* |
247.3 |
257.8 |
|
EPS - normalised ($) |
|
(2.25) |
(0.35) |
(0.18) |
(0.37) |
EPS - (IFRS) ($) |
|
(2.38) |
(1.13) |
(0.81) |
(0.88) |
Dividend per share ($) |
0.00 |
0.00 |
0.00 |
0.00 |
|
Gross margin (%) |
28.1% |
31.3% |
10.7% |
32.2% |
|
EBITDA margin (%) |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
||
BALANCE SHEET |
|
|
|
|
|
Fixed Assets |
|
13.0 |
13.1 |
78.1 |
139.1 |
Intangible Assets |
5.2 |
4.4 |
0.0 |
0.0 |
|
Tangible Assets |
7.4 |
8.3 |
12.2 |
22.4 |
|
Deferred tax and other |
0.0 |
0.0 |
1.0 |
0.9 |
|
Bank deposits/securities |
0.0 |
0.0 |
64.4 |
115.0 |
|
Restricted deposits |
0.4 |
0.4 |
0.5 |
0.9 |
|
Current Assets |
|
9.9 |
676.1 |
1,311.9 |
1,064.3 |
Stocks |
3.5 |
3.3 |
11.2 |
19.4 |
|
Debtors |
2.4 |
1.8 |
9.3 |
12.8 |
|
Cash |
3.9 |
585.3 |
853.6 |
685.4 |
|
Bank deposits |
0.0 |
85.6 |
437.6 |
346.7 |
|
Restricted deposits |
0.0 |
0.1 |
0.1 |
0.1 |
|
Current Liabilities |
|
(4.4) |
(6.7) |
(32.0) |
(37.0) |
Creditors |
(4.4) |
(6.7) |
(16.7) |
(27.9) |
|
Short-term borrowings |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
0.0 |
0.0 |
(15.3) |
(9.2) |
|
Long-Term Liabilities |
|
(6.8) |
(15.5) |
(13.7) |
(16.1) |
Long-term borrowings |
(2.1) |
(2.6) |
(4.4) |
(13.1) |
|
Other liabilities |
(4.7) |
(12.8) |
(9.3) |
(3.0) |
|
Net Assets |
|
11.6 |
667.1 |
1,344.2 |
1,150.3 |
|
|
|
|
||
CASH FLOW |
|
|
|
|
|
Operating Cash Flow |
(11.7) |
(12.6) |
(38.4) |
(88.8) |
|
Working capital |
(0.8) |
2.9 |
2.7 |
(1.2) |
|
Exceptionals and other |
(0.2) |
(0.0) |
(7.0) |
(2.1) |
|
Tax |
0.0 |
0.0 |
0.0 |
0.0 |
|
Net Operating Cash Flow |
|
(12.7) |
(9.6) |
(42.6) |
(92.1) |
Net Interest |
0.0 |
0.2 |
3.7 |
17.5 |
|
Investment in intangible & tangible assets |
(0.6) |
(1.4) |
(9.8) |
(9.4) |
|
Acquisitions/disposals |
0.0 |
0.0 |
(74.6) |
(219.5) |
|
Equity financing |
14.6 |
679.0 |
805.7 |
0.0 |
|
Dividends |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
0.0 |
0.0 |
0.0 |
(0.0) |
|
Net Cash Flow |
1.4 |
668.1 |
682.4 |
(303.5) |
|
Opening net debt/(cash) |
|
(3.8) |
(1.8) |
(668.3) |
(1,351.2) |
HP finance leases initiated |
0.0 |
0.0 |
0.0 |
0.0 |
|
Other |
(3.3) |
(1.6) |
0.4 |
(28.7) |
|
Closing net debt/(cash) |
|
(1.8) |
(668.3) |
(1,351.2) |
(1,018.9) |
Source: Company data. Note: *Adjusted for 1:50 reverse split effective June 2020.
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