Proto Labs (PRLB) AI Stock Analysis

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Proto Labs

(NYSE:PRLB)

Rating:73Outperform

Price Target:

$42.00

▲(9.55%Upside)

Proto Labs exhibits strong financial fundamentals and positive corporate changes, but faces challenges with profitability and valuation. The positive earnings call and new CEO appointment offer potential for future growth. However, overvaluation concerns and macroeconomic headwinds remain significant risks.

Positive Factors

Financial Performance

Proto Labs reported better-than-expected financial results for their 1Q25, including revenues of $126.2 million.

Industry Position

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

Strategic Initiatives

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

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.

Revenue Segments

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

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

Market Cap

$911.37M

Dividend YieldN/A

Average Volume (3M)195.94K

Price to Earnings (P/E)64.2

Beta (1Y)1.62

Revenue Growth-1.32%

EPS Growth-21.84%

CountryUS

Employees2,357

SectorIndustrials

Sector Strength91

IndustryManufacturing - Metal Fabrication

Share Statistics

EPS (TTM)0.33

Shares Outstanding23,770,640

10 Day Avg. Volume244,360

30 Day Avg. Volume195,941

Financial Highlights & Ratios

PEG Ratio-7.21

Price to Book (P/B)1.33

Price to Sales (P/S)0.00

P/FCF Ratio12.57

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue0.44

Enterprise Value/Gross Profit3.99

Enterprise Value/Ebitda3.67

Forecast

1Y Price Target

$47.50

Price Target Upside23.89% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Proto Labs Business Overview & Revenue Model

Company DescriptionProto 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 MoneyProto 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 Key Performance Indicators (KPIs)

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 InsightsProto Labs has seen fluctuations in the number of developers and engineers served, with a notable dip during the pandemic in 2020 and a subsequent recovery. However, recent quarters show a slight decline, aligning with macroeconomic headwinds and challenges in segments like Injection Molding and 3D Printing. Despite these challenges, the company is focusing on expanding production use cases and reinforcing its core prototyping business, which may stabilize or increase engagement in the future. Strategic investments in marketing and production capabilities are expected to drive further customer engagement.

Data provided by:

Main Street Data

Proto Labs Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: 7.09%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Positive

The earnings call reflects a generally positive outlook with strong revenue performance, growth in production offerings, and robust cash flow. However, year-over-year revenue declines and challenges in certain segments like Injection Molding and 3D Printing highlight ongoing challenges. The company's adaptability and strategic focus on production are evident positives, but macroeconomic uncertainties and tariff-related challenges remain concerns.

Q1-2025 Updates

Positive Updates

Strong Revenue Performance

Proto Labs reported first quarter revenue of $126 million, near the upper end of their guidance range with earnings per share of $0.33, also near the top of expectations.

Growth in Production Offerings

Customers utilizing Proto Labs' combined offer grew more than 45% over the trailing 12 months, with revenue per customer increasing by 3% year-over-year. Production revenue exceeded expectations in the first quarter.

Expansion in Aerospace and Defense

Proto Labs' revenue from aerospace and defense customers has increased significantly, with partnerships including Blue Origin, NASA, and Lockheed Martin.

Improved Gross Margin

First quarter consolidated non-GAAP gross margin increased 140 basis points sequentially to 44.8%.

Positive Cash Flow and Shareholder Returns

Generated $18.4 million in cash from operations during the first quarter and returned $20.9 million to shareholders through repurchases, exceeding 122% of free cash flow.

Negative Updates

Year-Over-Year Revenue Decline

First quarter revenue was down 1% year-over-year in constant currencies, partly due to macroeconomic headwinds and manufacturing contraction.

Decline in Injection Molding and 3D Printing

Injection Molding revenue declined 7% year-over-year, and 3D Printing revenue was down 6% due to lower order trends in late 2024 and early 2025.

Challenges with Tariffs

Uncertainty regarding tariffs could impact pricing, although Proto Labs has not yet seen substantial cost increases from tariffs.

Company Guidance

During the Proto Labs First Quarter 2025 Earnings Call, Rob Bodor, President and CEO, highlighted the company's strong start to the year with revenue of $126 million, which was near the upper end of their guidance range, and earnings per share of $0.33. The company experienced a sequential gross margin expansion and a strong free cash flow, with free cash flow representing 14% of revenue. Despite a slight year-over-year decline in revenue due to macroeconomic headwinds, Proto Labs reported a 4% sequential increase, driven by a 45% growth in customers utilizing their combined offerings and a 3% increase in revenue per customer. The company's strategic investment in marketing and its production capabilities have resulted in increased customer engagement and production revenue that exceeded expectations in the first quarter. For the second quarter of 2025, Proto Labs expects revenue between $124 million and $132 million, with a focus on expanding production use cases and reinforcing its core prototyping business.

Proto Labs Financial Statement Overview

Summary

Proto Labs exhibits a solid financial foundation with stable income statement performance, a strong balance sheet, and efficient cash flow management. While profitability margins are under pressure, the company's low leverage and strong cash flow generation provide resilience against market fluctuations. Continued focus on improving net profitability could enhance overall financial health.

Income Statement

Positive

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

Positive

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

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
499.20M	500.89M	503.88M	488.40M	488.10M	434.39M
	Gross Profit
221.43M	223.20M	221.99M	215.47M	222.69M	217.83M
	EBIT
17.61M	19.91M	28.17M	151.88M	40.34M	59.84M
	EBITDA
46.82M	60.68M	66.58M	66.37M	80.83M	92.43M
	Net Income Common Stockholders
14.92M	16.59M	17.22M	-103.46M	33.37M	50.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
109.68M	103.09M	102.80M	80.13M	77.51M	161.69M
	Total Assets
769.80M	743.51M	772.35M	802.17M	928.58M	744.20M
	Total Debt
4.96M	3.52M	5.48M	21.35M	7.44M	13.33M
	Net Debt
-87.85M	-85.56M	-78.31M	-35.20M	-58.48M	-114.27M
	Total Liabilities
82.49M	73.36M	77.06M	104.52M	100.09M	99.85M
	Stockholders Equity
687.31M	670.15M	695.29M	697.65M	828.49M	644.36M
Cash Flow		Free Cash Flow
76.63M	68.66M	45.16M	40.39M	21.03M	59.96M
	Operating Cash Flow
74.87M	77.83M	73.27M	62.08M	55.24M	106.97M
	Investing Cash Flow
-20.91M	-13.58M	-4.55M	-43.09M	-94.66M	-95.47M
	Financing Cash Flow
-63.86M	-58.55M	-41.86M	-27.92M	-22.20M	-10.73M

Proto Labs Technical Analysis

Technical Analysis Sentiment

Positive

Last Price38.34

Price Trends

50DMA

36.65

Positive

100DMA

38.23

Positive

200DMA

36.23

Positive

Market Momentum

MACD

>-0.01

Positive

RSI

52.19

Neutral

STOCH

66.48

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 38.34 is below the 20-day moving average (MA) of 38.99, above the 50-day MA of 36.65, and above the 200-day MA of 36.23, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.48 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 (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIIN	75 Outperform	$696.88M	31.13	6.61%	0.33%	-0.33%	-7.06%
PRLB	73 Outperform	$911.37M	64.22	2.22%	―	-1.32%	-21.84%
MEC	70 Outperform	$306.92M	13.89	9.40%	―	-8.42%	164.82%
NWPX	67 Neutral	$390.97M	12.09	9.13%	―	8.06%	38.46%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
RYI	59 Neutral	$704.77M	37.86	-0.78%	3.43%	-9.04%	-108.47%
CMPO	59 Neutral	$1.42B	―	8.26%	2.38%	-5.74%	-192.12%

* Industrials Sector Average

Performance Comparison

PRLB

Proto Labs

39.20

7.33

23.00%

IIIN

Insteel Industries

35.90

6.53

22.23%

NWPX

Northwest Pipe Company

39.58

5.91

17.55%

RYI

Ryerson Holdings

21.89

0.65

3.06%

MEC

Mayville Engineering Company

14.91

-1.96

-11.62%

CMPO

CompoSecure

13.92

8.72

167.69%

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.

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.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures

Proto Labs Appoints Suresh Krishna as New CEO

Positive

May 21, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.