Proto Labs (PRLB) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 168.92K
• Price to Earnings (P/E): 71.7
• Beta (1Y): 1.65
• Revenue Growth: -0.13%
• EPS Growth: -37.00%
• Country: US
• Employees: 2,357
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.41
• Shares Outstanding: 23,770,640
• 10 Day Avg. Volume: 170,483
• 30 Day Avg. Volume: 168,922
• PEG Ratio: N/A
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.32
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 4.00
• 1Y Price Target: $50.00
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $49.00 ▲(13.64%Upside)

Proto Labs' strong financial performance and optimistic earnings call are the primary drivers of its stock score. Although the technical indicators suggest bullish momentum, high valuation and regional revenue challenges temper the outlook. Strategic leadership changes add a positive note to the company's future growth potential.

Positive Factors

Financial Performance

Protolabs reported better-than-expected Q2 results, with revenues up 6.5% year-over-year, above the top end of guidance and ahead of Street expectations of 2% growth.

Industry Environment

The positive impact from recent consolidation in the additive manufacturing industry has reduced the number of competitors, benefiting ProtoLabs.

Strategic Initiatives

The company’s refreshed go-to-market strategy and focus on building its reputation as a reliable production partner are driving improvement in revenue per 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 Concerns

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 Business Overview & Revenue Model

Company Description

Proto Labs, Inc., together with its subsidiaries, operates as an e-commerce driven digital manufacturer of custom prototypes and on-demand production parts in the worldwide. The company offers injection molding; computer numerical control machining; three-dimensional (3D) printing, which include stereolithography, selective laser sintering, direct metal laser sintering, multi jet fusion, polyjet, and carbon DLS processes; and sheet metal fabrication products, including quick-turn and e-commerce-enabled custom sheet metal parts. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end markets. The company was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

How the Company Makes Money

Proto Labs makes money primarily through its digital manufacturing services, which include 3D printing, CNC machining, injection molding, and sheet metal fabrication. The company generates revenue by providing these services to a wide range of industries on a project-by-project basis, allowing clients to order custom parts with fast turnaround times. Proto Labs leverages its proprietary software to automate the quoting and manufacturing process, enabling cost-effective production and scalability. Key revenue streams include the fees charged for manufacturing services and any additional costs associated with materials and expedited shipping. Partnerships with leading technology firms and a robust customer base further contribute to the company's earnings by ensuring a steady demand for its on-demand manufacturing solutions.

Proto Labs Financial Statement Overview

Summary

Proto Labs exhibits solid financial health with a strong balance sheet and efficient cash flow management. Despite a low net profit margin and stagnant revenue growth, the company's low leverage and robust cash position provide resilience.

Income Statement

Proto Labs shows a stable gross profit margin at approximately 44% in TTM, indicating solid cost management. However, the net profit margin is relatively low at around 3%, reflecting pressure on profitability potentially due to higher operating expenses. Revenue growth has been stagnant, with a slight decline in TTM compared to the previous annual period.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage use. The equity ratio is robust at nearly 100%, showcasing financial stability. However, return on equity is modest at around 2%, suggesting potential inefficiencies in generating shareholder returns.

Cash Flow

Proto Labs demonstrates strong cash flow management, with a healthy free cash flow that grew 11.6% from the previous period. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to reported earnings. This strong cash position supports operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	508.64M	500.89M	503.88M	488.40M	488.10M	434.39M
Gross Profit	224.66M	223.20M	221.99M	215.47M	222.69M	217.83M
EBITDA	48.56M	60.68M	66.58M	66.37M	80.83M	92.43M
Net Income	14.81M	16.59M	17.22M	-103.46M	33.37M	50.87M
Balance Sheet
Total Assets	743.25M	743.51M	772.35M	802.17M	928.58M	744.20M
Cash, Cash Equivalents and Short-Term Investments	103.19M	103.09M	102.80M	80.13M	77.51M	161.69M
Total Debt	2.83M	3.52M	5.48M	21.35M	7.44M	13.33M
Total Liabilities	73.43M	73.36M	77.06M	104.52M	100.09M	99.85M
Stockholders Equity	743.25M	670.15M	695.29M	697.65M	828.49M	644.36M
Cash Flow
Free Cash Flow	76.97M	68.66M	45.16M	40.39M	21.03M	59.96M
Operating Cash Flow	71.01M	77.83M	73.27M	62.08M	55.24M	106.97M
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 Price: 43.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 43.12 is above the 20-day moving average (MA) of 40.07, above the 50-day MA of 39.21, and above the 200-day MA of 38.16, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 63.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRLB.

Proto Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRLB	77 Outperform	$1.02B	71.65	2.19%	―	-0.13%	-37.00%
NWPX	73 Outperform	$425.74M	13.29	9.13%	―	8.06%	38.46%
IIIN	72 Outperform	$700.70M	22.66	8.87%	3.10%	9.44%	53.83%
MEC	65 Neutral	$343.13M	15.53	9.40%	―	-8.42%	164.82%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
CMPO	58 Neutral	$1.41B	―	8.26%	2.10%	-5.74%	-192.12%
RYI	53 Neutral	$701.87M	37.86	-1.73%	3.64%	-7.98%	-124.63%

Proto Labs Corporate Events

Proto Labs Extends Consulting Agreement with Former CEO

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.

The most recent analyst rating on (PRLB) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Proto Labs stock, see the PRLB Stock Forecast page.

Proto Labs Appoints Suresh Krishna as New CEO

On May 21, 2025, Proto Labs announced the appointment of Suresh Krishna as the new President and CEO, effective May 20, 2025, succeeding Robert Bodor. With a strong background in driving growth and innovation, Krishna is expected to enhance Proto Labs’ market position and accelerate its production expansion initiatives. The company also reaffirmed its second-quarter 2025 financial outlook, projecting revenue between $124 million and $132 million, and highlighted its ongoing commitment to customer-centric innovation and operational excellence.

The most recent analyst rating on (PRLB) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Proto Labs stock, see the PRLB Stock Forecast page.