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Proto Labs Inc. (PRLB)
NYSE:PRLB
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Proto Labs (PRLB) AI Stock Analysis

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PRLB

Proto Labs

(NYSE:PRLB)

Rating:77Outperform
Price Target:
$55.00
▲(8.50% Upside)
Proto Labs' overall stock score is driven by strong technical indicators and a positive earnings call, highlighting record revenue and strategic growth in CNC machining. Financial performance is solid, though high valuation and margin pressures pose risks. The company's strategic initiatives and strong cash position provide a foundation for future growth, despite challenges in certain segments and regions.
Positive Factors
Financial Performance
Protolabs reported a strong second quarter and issued encouraging guidance for the third quarter.
Industry Position
The positive impact from recent consolidation in the additive manufacturing industry has reduced the number of competitors, benefiting ProtoLabs.
Leadership
The company’s new CEO, Suresh Krishna, brings 30 years of experience at various manufacturing companies and is a former Protolabs customer.
Negative Factors
Earnings Forecast
Valuation expansion will be restrained in the near term given the forecast for an earnings decline in 2025, attributable to higher expenses and the ongoing mix shift to lower-margin network sales.
Economic Outlook
Improvement in the industrial economy would likely result in upside to the forecast, but there is a cautious economic outlook for the balance of 2025.
Valuation
Valuation expansion will continue to be restrained in the near term given the expectation for continued challenges in the core injection molding business and forecast for a decline in earnings in 2025.

Proto Labs (PRLB) vs. SPDR S&P 500 ETF (SPY)

Proto Labs Business Overview & Revenue Model

Company DescriptionProto Labs (PRLB) is a leading digital manufacturing company that specializes in rapid prototyping and on-demand production services. Founded in 1999, the company operates primarily in the industrial and manufacturing sectors, offering services such as injection molding, CNC machining, 3D printing, and sheet metal fabrication. Proto Labs caters to a diverse range of industries including aerospace, automotive, medical, and consumer products, providing customers with fast and efficient manufacturing solutions to accelerate product development and reduce time-to-market.
How the Company Makes MoneyProto Labs generates revenue primarily through its digital manufacturing services, which include rapid prototyping and low-volume production. The company charges customers for customized manufacturing projects based on factors such as material costs, complexity, and production volume. Key revenue streams include injection molding, CNC machining, 3D printing, and other specialized fabrication services. Additionally, Proto Labs leverages a user-friendly online platform where customers can upload design files, receive instant quotes, and place orders, streamlining the purchasing process. The company's strong focus on innovation and technology has allowed it to establish significant partnerships with businesses in various sectors, enhancing its market reach and contributing to its overall earnings.

Proto Labs Key Performance Indicators (KPIs)

Any
Any
Developers and Engineers Served
Developers and Engineers Served
Measures the number of developers and engineers using Proto Labs' services, indicating the company's reach and influence within the manufacturing and prototyping sectors, as well as potential for future growth.
Chart InsightsThe number of developers and engineers served by Proto Labs has shown a steady pattern with minor fluctuations over recent quarters. Despite a slight dip in late 2023, the numbers have stabilized around the mid-22,000s. The latest earnings call highlights a strong performance in CNC machining and strategic customer engagement, suggesting potential future growth in service numbers. However, challenges in injection molding and 3D printing, alongside European revenue declines, may temper immediate expansion in this metric.
Data provided by:Main Street Data

Proto Labs Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 29.21%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
Proto Labs reported a record-breaking quarter with strong performance in CNC machining and growth in strategic sectors like Aerospace and Defense. However, there were declines in injection molding and 3D printing revenues, challenges in Europe, and margin pressures from tariffs. Despite these issues, the company's strong cash generation and strategic initiatives position it well for the future.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue
Proto Labs achieved record revenue of $135.1 million in Q2 2025, exceeding guidance and up 6.5% year-over-year in constant currencies.
Strong CNC Machining Growth
CNC machining revenue was a company record, growing 20% over the prior year, with U.S. CNC machining revenue up 30%.
Recognition and Certification
Proto Labs received the 2025 Future of Manufacturing Project Award and achieved ISO 13485 certification for its metal 3D printing service in Raleigh, NC.
Cash Generation and Shareholder Returns
The company generated $10.6 million in cash from operations and returned $3.1 million to shareholders through repurchases, maintaining $123.2 million in cash and investments with zero debt.
Growth in Strategic Sectors
Notable growth in Aerospace and Defense sectors, with strong demand from companies like NASA, Blue Origin, Airbus, and defense contractors.
Negative Updates
Injection Molding and 3D Printing Decline
Injection molding revenue declined 4% year-over-year and 3D printing revenue decreased by 1%, impacted by weakness in prototyping and medical sectors.
European Revenue Decline
Revenue in Europe declined 15% year-over-year in constant currencies, attributed to contracting manufacturing activity in the region.
Margin Pressures from Tariffs
Gross margin was down 90 basis points year-over-year due to margin pressures from tariffs, particularly affecting the U.S. network margins.
Company Guidance
During the Proto Labs Second Quarter 2025 Earnings Conference Call, several key metrics and guidance highlights were discussed. Proto Labs reported a record second-quarter revenue of $135.1 million, exceeding expectations with a 6.5% year-over-year growth in constant currencies and a 7% sequential increase. The company's CNC machining revenue grew significantly, with a 20% year-over-year increase, particularly driven by a 30% growth in the U.S. market. Revenue per customer contact rose by 11% year-over-year, and customers utilizing both the factory and network services increased by 44% over the past year. Non-GAAP gross margins were 44.8%, flat sequentially but down 90 basis points year-over-year due to tariff impacts and a higher mix of network revenue. Despite these challenges, Proto Labs maintained strong cash generation, ending the quarter with $123.2 million in cash and investments and no debt. For the third quarter of 2025, Proto Labs provided revenue guidance between $130 million and $138 million, implying a 6% growth year-over-year at the midpoint, with non-GAAP earnings per share expected to range from $0.35 to $0.43.

Proto Labs Financial Statement Overview

Summary
Proto Labs exhibits solid financial health characterized by stable revenue and profitability, strong balance sheet metrics, and effective cash flow management. There is room for improvement in margins and revenue growth, but the company's financials are robust overall, supporting ongoing operations and potential growth opportunities.
Income Statement
75
Positive
Proto Labs shows a stable gross profit margin around 44%, with a slight decrease in net profit margin from 3.3% to 2.9% in the TTM period. Revenue growth is modest at 1.5% annually, with the TTM showing a slight increase. EBIT and EBITDA margins are healthy but have shown a downward trend, indicating potential cost pressures.
Balance Sheet
80
Positive
The company maintains a strong equity position with a high equity ratio of nearly 100%, significantly reducing financial risk. The debt-to-equity ratio is exceptionally low, and ROE is modest. The balance sheet reflects a robust financial structure with ample liquidity.
Cash Flow
78
Positive
Operating cash flow is strong, with a good free cash flow margin. However, free cash flow growth is modest, and the cash flow to net income ratios indicate effective cash generation relative to net income. Cash flow stability supports operational and strategic initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue508.64M500.89M503.88M488.40M488.10M434.39M
Gross Profit224.66M223.20M221.99M215.47M222.69M217.83M
EBITDA58.83M61.30M66.58M66.37M80.83M92.43M
Net Income14.81M16.59M17.22M-103.46M33.37M50.87M
Balance Sheet
Total Assets743.25M743.51M772.35M802.17M928.58M744.20M
Cash, Cash Equivalents and Short-Term Investments103.19M103.09M102.80M80.13M77.51M161.69M
Total Debt2.83M3.52M5.48M21.35M7.44M13.33M
Total Liabilities78.55M73.36M77.06M104.52M100.09M99.85M
Stockholders Equity743.25M670.15M695.29M697.65M828.49M644.36M
Cash Flow
Free Cash Flow76.97M68.66M45.16M40.39M21.03M59.96M
Operating Cash Flow71.01M77.83M73.27M62.08M55.24M106.97M
Investing Cash Flow-20.80M-13.58M-4.55M-43.09M-94.66M-95.47M
Financing Cash Flow-56.81M-58.55M-41.86M-27.92M-22.20M-10.73M

Proto Labs Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.69
Price Trends
50DMA
41.80
Positive
100DMA
39.28
Positive
200DMA
39.56
Positive
Market Momentum
MACD
2.15
Negative
RSI
68.76
Neutral
STOCH
65.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRLB, the sentiment is Positive. The current price of 50.69 is above the 20-day moving average (MA) of 45.08, above the 50-day MA of 41.80, and above the 200-day MA of 39.56, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 68.76 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRLB.

Proto Labs Risk Analysis

Proto Labs disclosed 35 risk factors in its most recent earnings report. Proto Labs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Proto Labs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.15B84.232.19%-0.13%-37.00%
75
Outperform
$719.33M23.268.87%2.90%9.44%53.83%
72
Outperform
$498.43M15.389.14%5.83%33.50%
65
Neutral
£2.65B12.633.41%3.25%2.43%-22.02%
62
Neutral
$718.68M37.86-1.73%3.29%-7.98%-124.63%
61
Neutral
$283.03M17.057.37%-16.95%66.04%
61
Neutral
$1.97B8.26%1.54%-34.58%-240.25%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRLB
Proto Labs
50.69
19.58
62.94%
IIIN
Insteel Industries
38.59
5.90
18.05%
NWPX
Northwest Pipe Company
52.69
7.80
17.38%
RYI
Ryerson Holdings
22.80
3.00
15.15%
MEC
Mayville Engineering Company
14.43
-5.37
-27.12%
CMPO
CompoSecure
19.84
10.05
102.66%

Proto Labs Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Proto Labs Extends Consulting Agreement with Former CEO
Neutral
May 30, 2025

On May 20, 2025, Robert Bodor stepped down as President and CEO of Proto Labs, Inc., and subsequently entered into a consulting agreement with the company to assist in management transition. The agreement, which includes a monthly fee and provisions for stock options, was extended on May 28, 2025, to continue through November 11, 2025, allowing Dr. Bodor to provide transitional consulting services.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025