Proto Labs (PRLB) AI Stock Analysis

• Market Cap: $836.01M
• Dividend Yield: N/A
• Average Volume (3M): 228.52K
• Price to Earnings (P/E): 53.8
• Beta (1Y): 1.63
• Revenue Growth: -0.59%
• EPS Growth: -0.85%
• Country: US
• Employees: 2,357
• Sector: Industrials
• Sector Strength: 74
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.65
• Shares Outstanding: 23,770,640
• 10 Day Avg. Volume: 295,169
• 30 Day Avg. Volume: 228,521
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.76
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $47.50
• Price Target Upside: 35.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Proto Labs' stock score reflects solid financial stability and potential growth from strategic investments, tempered by challenges in revenue growth and high valuation. While the stock buyback program and improved gross margins are positives, declining net margins and macroeconomic headwinds pose risks.

Positive Factors

Financial Performance

Proto Labs reported better-than-expected financial results for their 4Q24, boosted by increased customer counts and improved margins.

Market Position

PRLB has an opportunity to continue to grow its share of revenue serving production applications through its combined factory and network offering.

Shareholder Returns

Proto Labs announced a new $100 million share repurchase program and a plan to increase marketing efforts for its production capacities.

Negative Factors

Earnings Outlook

Ongoing initiatives to drive growth in the production part of PRLB’s business will come with higher investments that are likely to result in declining EPS through much, if not all, of 2025.

Segment Performance

Revenue declines were noted in Injection Molding and 3D Printing segments, despite overall positive results.

Proto Labs Business Overview & Revenue Model

Company Description

Proto Labs (PRLB) is a digital manufacturing company that specializes in rapid prototyping and on-demand production, primarily serving industries such as aerospace, automotive, medical, and consumer electronics. The company offers a range of services including 3D printing, CNC machining, sheet metal fabrication, and injection molding, enabling clients to move from design to prototype and final production with speed and efficiency.

How the Company Makes Money

Proto Labs generates revenue primarily through its on-demand manufacturing services, which cater to a diverse array of industries requiring rapid prototyping and low-volume production. The company's key revenue streams include fees from manufacturing services across its 3D printing, CNC machining, injection molding, and sheet metal fabrication offerings. Proto Labs leverages its proprietary software platform to streamline the production process, allowing for quick turnaround times and competitive pricing. Additionally, the company benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, contributing to its sales and profitability.

Proto Labs Financial Statement Overview

Summary

Proto Labs exhibits financial stability with low leverage and strong equity positions. While the company maintains stable gross margins, declining net margins and inconsistent revenue growth are concerns. Cash flow management appears strong, though capital allocation strategies may require attention to ensure sustainable growth.

Income Statement

Proto Labs has shown stable gross profit margins around 44-45% over the years, indicating consistent cost management. However, the net profit margin has been fluctuating, with a decline in recent years, notably dropping from a positive 11.7% in 2020 to 3.3% in 2024. The revenue growth rate has been minimal, with a slight decline from 2019 to 2024. EBIT and EBITDA margins have also decreased, suggesting pressure on operating efficiency.

Balance Sheet

The company maintains a strong debt-to-equity ratio, significantly below 1, indicating low leverage and financial stability. Return on equity is modest, with fluctuations due to varying net income levels. The equity ratio has remained high, showcasing a solid equity base compared to total assets, which supports financial stability.

Cash Flow

Operating cash flow is consistently positive, but free cash flow growth has been inconsistent. The free cash flow to net income ratio is favorable, indicating effective cash generation relative to earnings. However, significant fluctuations in investing and financing cash flows suggest potential risks in capital allocation strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
500.89M	503.88M	488.40M	488.10M	434.39M
	Gross Profit
223.20M	221.99M	215.47M	222.69M	217.83M
	EBIT
19.91M	28.17M	151.88M	40.34M	59.84M
	EBITDA
61.30M	66.58M	66.37M	80.83M	92.43M
	Net Income Common Stockholders
16.59M	17.22M	-103.46M	33.37M	50.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.09M	102.80M	80.13M	77.51M	161.69M
	Total Assets
743.51M	772.35M	802.17M	928.58M	744.20M
	Total Debt
3.52M	5.48M	21.35M	7.44M	13.33M
	Net Debt
-85.56M	-78.31M	-35.20M	-58.48M	-114.27M
	Total Liabilities
73.36M	77.06M	104.52M	100.09M	99.85M
	Stockholders Equity
670.15M	695.29M	697.65M	828.49M	644.36M
Cash Flow		Free Cash Flow
77.83M	45.16M	40.39M	21.03M	59.96M
	Operating Cash Flow
77.83M	73.27M	62.08M	55.24M	106.97M
	Investing Cash Flow
-13.58M	-4.55M	-43.09M	-94.66M	-95.47M
	Financing Cash Flow
-58.55M	-41.86M	-27.92M	-22.20M	-10.73M

Proto Labs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRLB, the sentiment is Neutral. The current price of 35.17 is above the 20-day moving average (MA) of 33.92, below the 50-day MA of 36.82, and below the 200-day MA of 35.21, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRLB.

Proto Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWPX	75 Outperform	$420.66M	12.44	9.58%	―	10.81%	63.68%
IIIN	72 Outperform	$519.77M	27.20	6.61%	0.36%	-0.33%	-7.06%
PRLB	64 Neutral	$836.01M	53.78	2.43%	―	-0.59%	-0.85%
Sector *	63 Neutral	$4.27B	11.36	5.38%	214.64%	4.14%	-9.01%
MEC	61 Neutral	$255.45M	10.13	10.78%	―	-1.16%	227.49%
RYI	59 Neutral	$742.44M	37.86	-1.00%	3.22%	-9.98%	-106.51%
CMPO	49 Neutral	$1.10B	―	8.26%	2.78%	7.67%	-199.44%

Proto Labs Corporate Events

Proto Labs Launches $100 Million Stock Buyback Program

Protolabs announced a new $100 million stock repurchase program on February 7, 2025, highlighting its strategic initiative to enhance shareholder value. The company reported a slight decrease in revenue for 2024 compared to 2023, but showed improvements in gross margins and cash flow, reflecting its ongoing transformation efforts and focus on expanding production capabilities.