Fast Radius, Inc. (FSRD) in Chicago provides additive manufacturing solutions that include application discovery, product design, testing, production-grade manufacturing, and global fulfillment. The company’s offerings include additive thermoplastic, elastomeric, and metal manufacturing services. The cloud manufacturing company offers end-to-end solutions for manufacturers to design, make, and move parts efficiently and sustainably.

FSRD stock has declined 66.5% in price since the company went public on February 7, while it declined 1.7% over the past month. However, it has gained 35.9% over the past five days to close Friday’s trading session at $2.26.

On March 18, 2022, the stock hit $1.34, its lowest price since it went public on Feb. 7, 2022.

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Here is what could shape FSRD’s performance in the near term.

Recent Merger

FSRD went public through a business combination with a special purpose acquisition company (SPAC), ECP Environmental Growth Opportunities Corp. (ENNV), on Feb.7, 2022. The company went public at a $1.40 billion valuation, despite a number of canceled SPAC deals recently. In connection with the merger, holders of 31,512,573 shares of the Class A common stock, with a par value of $0.0001 per share of ENNV, exercised their right to redeem their shares at a $10.01 per share, representing an aggregate redemption amount of approximately $315.40 million.

Lagging IPO Market

Global initial public offerings (IPOs) have  declined for the first quarter of this year due to the market volatility created by the Russia-Ukraine war and raging inflation. So far this year, IPOs worldwide have raised $65 billion, down 70% from last year’s $219 billion figure for the same period last year. Rising interest rates and market swings are leading investors away from companies with high growth forecasts but little in profits. The global market is currently set to post the lowest quarterly returns since the onset of the COVID-19 pandemic.

Recent Developments

On February 1, FSRD announced the launch of its Early Access Program, which includes a set group of manufacturing companies that will receive early access to FSRD’s software and the ability to use pre-release features, which is expected to enable their teams to better collaborate on design and manufacturing processes. Companies already enrolled in the program include Oshkosh Corporation (OSK) and Aptiv PLC (APTV). This move should prove  beneficial for the company.

On January 11, FSRD announced the opening of its manufacturing technology campus on Goose Island, Chicago. The campus includes a micro-factory and software technology center. “There’s an ever-increasing need for innovative and sustainable manufacturing and supply chain solutions, and our Goose Island campus is designed to help meet those needs,” said Lou Rassey, Co-founder and CEO of FSRD.

POWR Ratings

FSRD has an overall C rating, which equates to neutral in our proprietary POWR Rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a Momentum grade of C. This is consistent because the stock is currently trading lower than its 50-day moving average of $4.61.

In the 89-stock Industrial – Services industry, FSRD is ranked #78. The industry is rated B.

Click here to see the additional POWR Ratings for FSRD (Growth, Value, Stability, Sentiment, and Quality).

View all the top-rated stocks in the Industrial – Services industry here.

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Bottom Line

The company recently went public and has yet to publish a quarterly report. And, considering the lagging IPO market this year, we think it could be wise to wait for more clarity on FSRD’s prospectus before investing in the stock.

How Does Fast Radius, Inc. (FSRD) Stack Up Against its Peers?

While FSRD has an overall POWR Rating of C, one might consider taking a look at its industry peers, PT United Tractors Tbk (PUTKY) and Barloworld Limited (BRRAY), which have an overall A (Strong Buy) rating, and Advanced Emissions Solutions, Inc. (ADES) and Balfour Beatty plc (BAFYY) which have an overall B (Buy) rating.

Click here to check out our Software Industry Report for 2022

FSRD shares were trading at $2.45 per share on Monday afternoon, up $0.19 (+8.41%). Year-to-date, FSRD has declined -75.15%, versus a -4.35% rise in the benchmark S&P 500 index during the same period.

About the Author: Anushka Dutta

Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...

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