Xometry (XMTR) Joins Siemens Software, Is It Still 8% Undervalued?
Xometry (XMTR) is in focus after Siemens agreed to integrate the marketplace's AI powered manufacturing tools into its Design Center and Xcelerator software, alongside a $50 million equity investment from the industrial technology group.
The Siemens agreement lands after a strong run for Xometry, with the share price up 60.64% year to date and a 90 day share price return of 17.62%, pointing to building momentum despite a 3.27% pullback over the past month. Total shareholder return tells an even bigger story, with a 1 year gain of 107.79% and a very large 3 year total shareholder return. This suggests investors have been steadily repricing the business as partnerships and workflow adoption reshape how they view its risk and growth profile.
Scan other AI focused manufacturing and automation plays showing similar momentum with our hand picked 94 robotics and automation stocks, which sit at the intersection of software, robotics, and industrial workflows.
After a move like Xometry’s, some investors see a fresh Siemens backed runway, while others see a chart that has already priced it in. The valuation section tests which view holds more weight.
Most Popular Narrative: 8% Undervalued
Xometry last closed at $100.82, while the most followed valuation narrative places fair value at $109.13. This implies a modest discount that depends on how its AI marketplace scales from here.
The rapid deployment of AI and machine learning across pricing, supplier selection, and workflow automation is substantially improving efficiency, optimizing gross margin, and providing significant operating leverage, positioning the company for margin expansion and improving EBITDA.
See why 11 investors see Xometry as 8% undervalued.
Result: Fair Value of $109.13 (UNDERVALUED)
Still, Xometry’s heavy tech spending alongside ongoing losses of $30.8 million, plus intensifying marketplace competition, could quickly challenge this underpriced narrative if its execution slips.
Find out about the key risks to this Xometry narrative.
Another View: Xometry Looks Expensive On Sales
The narrative model points to Xometry trading at an 8% discount to a fair value of $109.13. The simpler price to sales lens tells a much tougher story. Xometry trades on a P/S of 7.2x versus 1.1x for the US Trade Distributors group and a fair ratio of 4.5x.
That mix of a much higher current multiple and a fair ratio that sits well below today’s level suggests limited room for error if expectations cool or if peers start to close the gap. Which version of the story do you put more weight on right now: the narrative fair value or the multiple risk signal
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals in the Xometry story so far. Move quickly from reading to testing the numbers yourself by starting with our breakdown of 2 key rewards and 1 important warning sign.
Looking for more Xometry style investment ideas?
If you stop at Xometry, you risk missing out on other compelling setups. Put a few minutes into scanning fresh ideas and your watchlist could look very different.
- Target stronger upside potential by reviewing a curated 18 high quality undiscovered gems that pair quality fundamentals with room for the story to spread.
- Anchor your portfolio with stability by using the list of solid balance sheet and fundamentals (23 results) to spot companies with robust finances backing their share price.
- Strengthen your defense by scanning a 30 resilient stocks with low risk scores that filters for resilient stocks with lower risk profiles.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com