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Fathom Digital Manufacturing CorporationNYSE:FATH Stock Report

Market Cap US$35.2m
Share Price
n/a
US$4.75
n/aintrinsic discount
1Y-41.3%
7D-3.1%
1D
Portfolio Value
​
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Fathom Digital Manufacturing Corporation

NYSE:FATH Stock Report

Market Cap: US$35.2m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Fathom Digital Manufacturing (FATH) Stock Overview

A digital manufacturing platform, provides product development and manufacturing services in North America. More details

FATH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health1/6
Dividends0/6

Rewards

Price-To-Earnings ratio (2.6x) is below the US market (17.5x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($35M)


FATH Community Fair Values

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Fathom Digital Manufacturing Corporation Competitors

Price History & Performance

Summary of share price highs, lows and changes for Fathom Digital Manufacturing
Historical stock prices
Current Share PriceUS$5.05
52 Week HighUS$18.00
52 Week LowUS$2.99
Beta1.73
1 Month Change4.32%
3 Month Change14.77%
1 Year Change-41.28%
3 Year Change-97.41%
5 Year Changen/a
Change since IPO-97.45%

Recent News & Updates

Recent updates

Analysis Article • May 19

Analysts Are Updating Their Fathom Digital Manufacturing Corporation (NYSE:FATH) Estimates After Its First-Quarter Results

A week ago, Fathom Digital Manufacturing Corporation ( NYSE:FATH ) came out with a strong set of first-quarter numbers...
Analysis Article • Apr 05

These Analysts Just Made An Incredible Downgrade To Their Fathom Digital Manufacturing Corporation (NYSE:FATH) EPS Forecasts

The latest analyst coverage could presage a bad day for Fathom Digital Manufacturing Corporation ( NYSE:FATH ), with...
Analysis Article • Mar 10

An Intrinsic Calculation For Fathom Digital Manufacturing Corporation (NYSE:FATH) Suggests It's 32% Undervalued

Key Insights Using the 2 Stage Free Cash Flow to Equity, Fathom Digital Manufacturing fair value estimate is US$1.12...
Seeking Alpha • Dec 23

Fathom Digital Manufacturing: Early Stages In A Large Market Opportunity

Summary Fathom has core competence across additive manufacturing and more traditional methods. Currently sitting at 12 sites, I believe Fathom is poised to gain market share given speed with its growth strategy and optimization plans in place. I keep a December 2023 price target of $4.03 on the stock, based on the assumed PS multiple of 1.5x and FY23E 176.3 million revenues. Editor's note: Seeking Alpha is proud to welcome Principal Investor as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Thesis Fathom (FATH) is a tech-agnostic digital manufacturing platform addressing the low volume/high mix TAM of $25B, with a broad range of solutions across 3D printing, injection molding, CNC, and sheet metal fabrication. The firm is EBITDA profitable and positioned to benefit from secular trends in manufacturing, including a shift from in-house manufacturing to outsourced solutions driving lower capex for customers; quick turnaround for high-quality products requiring customers to hold less inventory; interactive software solutions and quick pricing quote. FATH is currently trading at a forward PS ratio of 0.83x sales compared to the 1.23x sector median and I believe the stock should trade higher owing to the company’s top-line potential growth and margin expansion. Company Overview Operating in North America, Fathom Digital Manufacturing Corporation provides digital manufacturing services to over 3K customers. The firm is tech agnostic and provides traditional manufacturing methods along with emerging technologies such as 3D printing. The firm focuses on low to mid-volume manufacturing and has 12 locations across the states with customers across industrial, medical, aerospace, auto, and consumer end markets. Why do I like FATH? Fathom’s Growth Strategy addresses a large TAM As part of the $25 billion low-to-mid volume manufacturing market involving these technologies, Fathom approximates that 40% of production is handled in-house, 55% is delegated to regional design services bureaus, and 5% is serviced by legacy digital manufacturers. The shortcoming of utilizing regional design services, which currently hold the largest market share, is that they are specialized in their offerings and not well positioned to scale production due to labor and capacity constraints. Similarly, legacy manufacturers experience constraints on the flexibility side and inhouse manufacturers have capacity constraints. A part of Fathom’s key growth strategy is taking market share from these areas, which they believe is an easy value add for companies looking to outsource production due to their increased flexibility and capacity offerings. Thus far, FATH has pointed its attention toward enterprise level corporate customers, leveraging their ability to tackle a wide range of manufacturing complexities and scale production quickly. In the near term, the existing customers will continue to be the focus as the company increases penetration across departments and lines of production (called the “land and expand” model). Over time, the company has a vision to expand the customer base to include other enterprise level corporate companies while retaining legacy customers by maintaining strong relationships. It also plans to grow additive manufacturing capabilities along with software and digital capabilities via organic growth or acquisition. Currently sitting at 12 sites, I believe Fathom is poised to gain market share given speed with its growth strategy and optimization plans in place and as FCF rebounds in FY23 (FY22 cashflow was affected by restructuring and one-off charges), I think the firm will continue to execute on new site acquisitions. FATH is exposed to a large TAM (company presentation) M&A in a highly fragmented space Fathom has continued to make acquisitions in recent years as the management looks to expand the company’s capabilities and services across sheet metal fabrication, injection molding, and CNC machining. The firm also regularly expands its portfolio of 3D printing capabilities. M&A pipeline has 50+ targeted opportunities with the potential to expand across thousands of companies. I believe it’s likely that the firm will continue to actively pursue M&A, adding new tech but also driving scale and incremental leverage, recognizing synergies post-close of acquisitions, rationalizing locations, and consolidating locations to drive scale benefits. Firm plans also include adding new services and cross-selling existing services to newly acquired client bases. FATH's pipeline breakdown (company presentation) Financial Outlook Revenue Outlook Fathom’s revenue segments are split by technology: Additive, Injection molding, CNC Machining, Precision Sheetmetal, and Other, which includes finishing work and other services. Revenues are typically recognized when performance obligation has been satisfied. I am looking for ~8% growth in FY22, and ~7.4% in FY23 (in line with the historical growth rate), with relative strength in Additive followed by CNC, Injection molding, Sheetmetal, and other. I believe longer term that the firm can grow high single digits top-line on scale as it expands market share in a fragmented market and expands services across segments and verticals. FATH's forecasted revenue estimates (my estimates) Margins and Earnings Outlook COGs consist of depreciation, raw materials costs, employee costs, and overhead. Near term rising costs of materials weighing on margins coupled with product mix. I think it’s likely that FATHOM will continue to actively pursue M&A, adding new tech but also driving scale and incremental leverage, recognizing synergies post close of acquisitions, rationalizing locations and consolidating locations to drive scale benefits. Firm plans also include adding new services and cross selling existing services to new acquired client bases.
Analysis Article • Oct 22

A Look At The Intrinsic Value Of Fathom Digital Manufacturing Corporation (NYSE:FATH)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fathom Digital...
Seeking Alpha • Aug 15

Fathom Digital reports Q2 results

Fathom Digital press release (NYSE:FATH): Q2 Adjusted EBITDA increased to $8.7M, representing an Adjusted EBITDA margin of 20.6% Revenue of $42M (+17.1% Y/Y) misses by $1.46M. Total orders were flat at $39.7M. For FY2022, the company currently expects year-over-year revenue growth of approximately 8% to 12% for a range between $165M and $171M vs. consensus of $184.22M. Adjusted EBITDA to range between $32M and $36M, representing year-over-year growth of approximately (7%) to 5% and an implied Adjusted EBITDA margin of 19.4% to 21.1%.

Shareholder Returns

FATHUS MachineryUS Market
7D-3.1%1.8%1.8%
1Y-41.3%40.9%28.4%

Return vs Industry: FATH underperformed the US Machinery industry which returned 31.8% over the past year.

Return vs Market: FATH underperformed the US Market which returned 27.7% over the past year.

Price Volatility

Is FATH's price volatile compared to industry and market?
FATH volatility
FATH Average Weekly Movement5.7%
Machinery Industry Average Movement6.7%
Market Average Movement7.2%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.0%

Stable Share Price: FATH has not had significant price volatility in the past 3 months.

Volatility Over Time: FATH's weekly volatility has decreased from 13% to 6% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1984576Carey Chenfathommfg.com

Fathom Digital Manufacturing Corporation, a digital manufacturing platform, provides product development and manufacturing services in North America. It provides plastic and metal additive technologies, computer numerical control machining, injection molding and tooling, precision sheet metal fabrication, design engineering, and catering services. The company serves the technology, defense, aerospace, medical, automotive, and Internet of Things (IoT) sectors.

Fathom Digital Manufacturing Corporation Fundamentals Summary

How do Fathom Digital Manufacturing's earnings and revenue compare to its market cap?
FATH fundamental statistics
Market capUS$35.24m
Earnings (TTM)US$7.07m
Revenue (TTM)US$125.48m
2.6x
P/E Ratio
0.1x
P/S Ratio

Is FATH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
FATH income statement (TTM)
RevenueUS$125.48m
Cost of RevenueUS$90.83m
Gross ProfitUS$34.65m
Other ExpensesUS$27.58m
EarningsUS$7.07m

Last Reported Earnings

Mar 31, 2024

Next Earnings Date

n/a

Earnings per share (EPS)1.94
Gross Margin27.62%
Net Profit Margin5.63%
Debt/Equity Ratio122.7%

How did FATH perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/05/22 15:54
End of Day Share Price 2024/05/21 00:00
Earnings2024/03/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Fathom Digital Manufacturing Corporation is covered by 6 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Wamsi MohanBofA Global Research
Gregory PalmCraig-Hallum Capital Group LLC
Paul ChungJ.P. Morgan