The history of SLM Solutions AG goes back to 1863 with the founding of the Aramayo Bismuth mines in Bolivia. The following years, the company expanded until it was listed on the London stock exchange in 1906.
After renaming the company to MCP in 2008, the company’s mines and chemicals division was transformed into a separate organization called MTT. It was based in Lübeck (Germany) and one in Stone (United Kingdom). In 2011, the German version MMT company changed its name to today’s SLM Solutions GmbH with the focus on metal processing and additive manufacturing.
Since then, companies like General Motors have been very interested in SLM Solutions, and in 2013 the private equity firm DPE in Munich bought large shares which led to a restructuring. According to Focus magazine, the company ranked 12th in 2015 among the fastest growing medium-sized companies in Germany.
Compared to companies such as 3D Systems or Stratasys, the product range of SLM Solutions GmbH is clear. In principle, it offers its patented Selective Laser Melting process in 3 different sizes.
In addition to the size differences between the machines, each also offers special features which we will not discuss in more detail at this point. You can find them on their product page, as well as other product, materials and services.
Other suppliers have similar machines in their assortment and, in addition, a much wider range of choices. Therefore, the question arises, why choose the SLM Solutions or even invest in it? Ultimately, this is a personal choice, what do you get from a company with many choices, if all products are of low quality and lose money. Then you would rather look for a company that patented 2 manufacturing techniques and does them right. But let’s take a look at the value and price performance of the stock to draw further conclusions.
SLM Solutions shares
The stock price and history are available starting 2015, as you can see in the chart. You notice the extreme fluctuation from 2015 to today starting at over 15 € to a high of almost 50 and back below 15 €.
After a year of stable performance, the peak in mid-2016 is particularly noticeable. At that time rumors of GM’s acquisition of SLM circulated in the media. Thereafter, the share price rose to plato in the first half of 2017 until it reached just under € 50 at the end of 2017. When the numbers were revealed at the end of 2018, the price of the stock plummeted as sales and profits were below analyst expectations.
At this point, the immense price decline is incomprehensible and therefore price forecasts hardly possible. Presumably, if you believe in the company, a savings contract is even the smartest of options. This is possible, for example, via Comdirect, with most other providers SLM Solutions is not offered by savings plan.
Compared to the big providers like Stratasys, 3D Systems and HP, SLM focuses on a small spectrum of patented products. As it turned out, this focus and quality have already attracted greats like General Motors (GM). In terms of the current price decline, this interest has more of negative consequences.
We keep an eye on SLM Solutions and are very excited about your opinion.