The dawn of the 3D printing era is upon us. These nifty devices are going to revolutionize so many aspects of our our lives. But most of the investing focus is concentrated on domestic 3D printing powerhouses: 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS). But many investors aren’t aware of a French 3D printing company called Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY).
Explosive growth all around
The 3D printing revolution is in its infancy. All three companies have been reporting astonishing growth that shows no signs of slowing. Each of these companies has reported record revenues in each of the last three years. Take a look:
| DDD | SSYS | DASTY | |
| 2012 Revenue | $353.63 M | $215.24 M | $2.66 B |
| Revenue 3 year CAGR | 30.3% | 22.24% | 7.8% |
| 2012 Diluted EPS | .71 | .36 | 4.17 |
| Current P/E ratio | 99.73 | 146.76 | 50.99 |
| 2012 Operating Cash Flow | $53 M | $1.49M | $699.63M |
The 2012 OCF number from Stratasys, Ltd. (NASDAQ:SSYS) was a bit of an anomaly. Its average for 2011 and 2010 was roughly around $20 million.
I realize that 3D printing is a high growth industry, the kind where P/E ratios don’t really mean much. However if I’m buying a company in an explosive growth industry, I don’t think the one with the lowest P/E ratio is a bad way to go.
Additionally, Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY) has proven that it can generate cash on a level exceeding that of its American counterparts. Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY) has not been growing revenue as fast as 3D Systems Corporation (NYSE:DDD) or Stratasys, Ltd. (NASDAQ:SSYS). Part of this is due to the weakening euro. The three year revenue CAGR in euros was 9.1%.
Diversity is good
If a company has an incredibly culturally diverse staff, you can bet it probably has a wide variety of mindsets at its disposal to solve the challenges it faces. At the end of 2012 Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY) had 8,101 employees in 37 different countries who combined represent 105 different nationalities. Stratasys, Ltd. (NASDAQ:SSYS) has offices in seven different countries (I counted the PRC as one country). Counting the United Kingdom as one country, 3D Systems Corporation (NYSE:DDD) has offices in 10 countries. Diversity edge: Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY).
For the two American companies, the region they grew revenues at the greatest rate in 2012 was Asia. Stratasys, Ltd. (NASDAQ:SSYS) and 3D Systems Corporation (NYSE:DDD) grew revenue in the region by 64.8% and 92.5% respectively. Over at Dassault Systemes S.A. (ADR) (OTCMKTS:DASTY) Asia was also the region that experienced the most revenue growth, but the number was only 20%.
