Proto Labs (PRLB) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 188.38K
• Price to Earnings (P/E): 82.1
• Beta (1Y): 1.55
• Revenue Growth: -0.13%
• EPS Growth: -37.00%
• Country: US
• Employees: 2,357
• Sector: Technology
• Sector Strength: 85
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.41
• Shares Outstanding: 23,874,758
• 10 Day Avg. Volume: 156,624
• 30 Day Avg. Volume: 188,380
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 14.70
• 1Y Price Target: $50.00
• Price Target Upside: 1.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $55.00 ▲(11.34% 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

Strong CNC Machining Growth

The significant growth in CNC machining, especially in the U.S., highlights Proto Labs' competitive advantage in this segment, supporting long-term revenue expansion and market leadership.

Cash Generation and Financial Health

Strong cash generation and a debt-free balance sheet provide financial stability and flexibility for strategic investments and growth initiatives.

Growth in Strategic Sectors

Expanding presence in high-demand sectors like Aerospace and Defense positions Proto Labs for sustained growth and diversification of its revenue base.

Negative Factors

Injection Molding and 3D Printing Decline

Declines in key segments like injection molding and 3D printing indicate potential challenges in maintaining growth and competitiveness in these areas.

European Revenue Decline

Significant revenue decline in Europe suggests regional market challenges, potentially impacting overall growth and requiring strategic adjustments.

Margin Pressures from Tariffs

Ongoing margin pressures from tariffs could affect profitability, necessitating cost management strategies to sustain long-term financial health.

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 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 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

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

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

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.

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	58.83M	61.30M	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	78.55M	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: 49.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 49.4 is below the 20-day moving average (MA) of 49.45, above the 50-day MA of 44.85, and above the 200-day MA of 40.41, indicating a bullish trend. The MACD of 1.38 indicates Positive momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 44.01 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	$1.20B	82.09	2.19%	―	-0.13%	-37.00%
IIIN	75 Outperform	$766.69M	24.09	8.87%	2.84%	9.44%	53.83%
NWPX	72 Outperform	$514.74M	16.05	9.14%	―	5.83%	33.50%
MEC	65 Neutral	$295.42M	17.18	7.37%	―	-16.95%	66.04%
RYI	63 Neutral	$728.02M	37.86	-1.73%	3.42%	-7.98%	-124.63%
Sector *	61 Neutral	$36.69B	12.42	-10.22%	1.85%	8.50%	-7.32%
CMPO	61 Neutral	$1.97B	―	8.26%	1.54%	-34.58%	-240.25%

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.