3D printing company Nano Dimension (NNDM, Financial) experienced a notable decline of 3.84% in its stock price, trading at $1.64. This downward trend followed a court ruling that mandates Nano Dimension must proceed with its acquisition of Desktop Metal (DM), initially valued at up to $183 million in cash.
In the recent judgment, a Delaware Court of Chancery judge ruled that Nano Dimension must complete the acquisition deal by March 31, 2024. This decision came after the company attempted to withdraw from the agreement, leading Desktop Metal to file a lawsuit. Nano Dimension was found in material breach of the contract, and despite its disappointment, the company has committed to finalizing the acquisition.
Analyzing the financials of Nano Dimension (NNDM, Financial), the company shows strong financial strength with an Altman Z-Score of 5.43, indicating a solid balance sheet. Despite the recent stock downturn, the stock's Price-to-Book (PB) Ratio is close to a 5-year low at 0.32, which may suggest undervaluation. Additionally, the GF Value of Nano Dimension is estimated to be $6.04, which might indicate a possible value trap [source](https://www.gurufocus.com/term/gf-value/NNDM). The stock also possesses a predictability rank of 1, although its predictability has been historically low.
The company operates with no severe warning signs but does have a history of declining revenue per share over the last five years. Encouragingly, Nano Dimension's operating margin is expanding, a positive sign of potential profitability improvements. Investors should note, however, the severe warning sign related to its financial health grade, labeled as 'F', in profitability.
