Proto Labs (PRLB) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 199.48K
• Price to Earnings (P/E): 78.8
• Beta (1Y): 1.55
• Revenue Growth: 2.82%
• EPS Growth: -34.29%
• Country: US
• Employees: 2,357
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.47
• Shares Outstanding: 23,678,745
• 10 Day Avg. Volume: 236,354
• 30 Day Avg. Volume: 199,481
• PEG Ratio: 0.00
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $57.00 ▲(14.55% Upside)

Proto Labs' overall stock score reflects its strong financial stability and positive earnings call highlights, including record revenue and growth in CNC machining. However, the high P/E ratio suggests overvaluation, and challenges in profitability and customer acquisition remain. The technical analysis indicates a short-term bullish trend, supporting a moderately positive outlook.

Positive Factors

U.S. Manufacturing Expansion

The expansion of U.S. manufacturing capacity, particularly in metal 3D printing, positions Proto Labs to better meet rising domestic demand and enhance its competitive edge in key industries like aerospace and medical devices.

CNC Machining Growth

Strong growth in CNC machining, especially in the U.S., underscores Proto Labs' ability to capitalize on demand in high-growth sectors such as aerospace and defense, supporting long-term revenue expansion.

Leadership Enhancement

The strategic appointment of a new Chief Technology and AI Officer emphasizes innovation and could enhance Proto Labs' digital manufacturing processes, strengthening its market position and operational efficiency.

Negative Factors

Decline in 3D Printing Revenue

The decline in 3D printing revenue, particularly in Europe, highlights challenges in maintaining growth in this segment, potentially affecting Proto Labs' diversification and long-term revenue stability.

Weak European Market Performance

Weak performance in the European market due to manufacturing contraction poses a risk to Proto Labs' international growth strategy and could impact overall revenue growth.

Decrease in Unique Developers

A decrease in unique developers indicates challenges in customer acquisition and retention, which could hinder Proto Labs' ability to expand its customer base and sustain long-term growth.

Proto Labs Business Overview & Revenue Model

Company Description

Proto Labs (PRLB) is a leading digital manufacturing company that specializes in rapid prototyping and on-demand production of custom parts. Founded in 1999 and headquartered in Maple Plain, Minnesota, Proto Labs serves a diverse range of industries, including aerospace, automotive, medical, and consumer products. The company leverages advanced technologies such as 3D printing, CNC machining, and injection molding to provide quick turnaround times and high-quality manufacturing solutions. Its core products include prototypes, low-volume production parts, and injection-molded parts, catering to the needs of engineers and product developers.

How the Company Makes Money

Proto Labs generates revenue primarily through its services in rapid prototyping and low-volume production. The company's revenue model is based on charging customers for the manufacturing of custom parts, which includes fees for design, engineering, and production. Key revenue streams include CNC machining, 3D printing, injection molding, and sheet metal fabrication. Proto Labs also benefits from repeat business with its customers, who often return for additional prototypes or production runs as their projects evolve. The company's efficiency in production and quick turnaround times are significant factors that attract clients, leading to a steady stream of orders. Additionally, partnerships with technology providers and ongoing investments in automation and manufacturing technologies further enhance its operational capabilities and revenue potential.

Proto Labs Financial Statement Overview

Summary

Proto Labs demonstrates financial stability with a strong balance sheet and efficient cash flow management. However, challenges in profitability and revenue growth are evident, as reflected in the income statement. The low leverage reduces financial risk, but improving operational efficiency and profitability remains crucial for future growth.

Income Statement

Proto Labs shows a modest revenue growth rate of 1.92% TTM, indicating a stable but slow growth trajectory. The gross profit margin of 44.12% is healthy, reflecting efficient production processes. However, the net profit margin of 2.86% TTM is relatively low, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have decreased over time, indicating potential operational inefficiencies.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0037 TTM, highlighting minimal leverage and financial risk. The equity ratio is robust, showing a solid capital structure. However, the return on equity of 2.23% TTM is modest, suggesting limited profitability from shareholders' investments.

Cash Flow

Operating cash flow to net income ratio of 1.08 TTM indicates good cash generation relative to net income. The free cash flow to net income ratio of 1.01 TTM is positive, showing effective cash management. However, the negative free cash flow growth rate of -1.54% TTM raises concerns about future cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	518.38M	500.89M	503.88M	488.40M	488.10M	434.39M
Gross Profit	228.72M	223.20M	221.99M	215.47M	222.69M	217.83M
EBITDA	57.15M	60.68M	66.58M	-58.45M	80.67M	95.54M
Net Income	14.84M	16.59M	17.22M	-103.46M	33.37M	50.87M
Balance Sheet
Total Assets	756.86M	743.51M	772.35M	802.17M	928.58M	744.20M
Cash, Cash Equivalents and Short-Term Investments	119.24M	103.09M	102.80M	80.13M	77.51M	161.69M
Total Debt	2.44M	3.52M	5.48M	21.35M	7.44M	13.33M
Total Liabilities	92.14M	73.36M	77.06M	104.52M	100.09M	99.85M
Stockholders Equity	664.72M	670.15M	695.29M	697.65M	828.49M	644.36M
Cash Flow
Free Cash Flow	73.05M	68.66M	45.16M	40.39M	21.03M	59.96M
Operating Cash Flow	75.35M	77.83M	73.27M	62.08M	55.24M	106.97M
Investing Cash Flow	-10.70M	-13.58M	-4.55M	-43.09M	-94.66M	-95.47M
Financing Cash Flow	-48.43M	-58.55M	-41.86M	-27.92M	-22.20M	-10.73M

Proto Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.76
• 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 49.76 is below the 20-day moving average (MA) of 49.96, below the 50-day MA of 50.87, and above the 200-day MA of 43.44, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 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
IIIN	73 Outperform	$631.23M	15.50	11.36%	3.37%	22.39%	112.75%
NWPX	71 Outperform	$573.02M	16.46	9.78%	―	7.61%	25.35%
PRLB	70 Outperform	$1.14B	78.80	2.21%	―	2.82%	-34.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	63 Neutral	$386.25M	32.76	5.06%	―	-12.38%	-0.71%
TG	54 Neutral	$268.11M	23.18	1.26%	―	-3.42%	―
RYI	49 Neutral	$732.76M	―	-2.81%	2.98%	-4.89%	-214.50%

Proto Labs Corporate Events

Proto Labs Appoints New Chief Technology and AI Officer

On October 3, 2025, Protolabs announced the departure of Chief Technology Officer Oleg Ryaboy, effective November 2, 2025, and the appointment of Marc Kermisch as the new Chief Technology and AI Officer, effective October 13, 2025. Kermisch, with over 25 years of experience in technology and R&D, is expected to lead Protolabs’ global technology organization, emphasizing innovation in software and AI tools to enhance the company’s digital manufacturing processes. This leadership transition marks a strategic move for Protolabs as it aims to integrate cutting-edge technology across its operations, potentially impacting its industry positioning and stakeholder engagement.