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Proto Labs Inc (PRLB)
:PRLB
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Proto Labs
(NYSE:PRLB)
75Outperform
Positive Factors
Financial Performance
Proto Labs reported better-than-expected financial results for their 1Q25, including revenue growth in the first quarter provided by a 10% jump in Network sales and a 2.5% increase in average revenue per customer.
Industry Position
The positive impact from recent consolidation in the additive manufacturing industry has reduced the number of competitors, benefiting ProtoLabs.
Share Repurchase
ProtoLabs garnered $18.4 million in operating cash flow in the first quarter, enabling the Company to complete $20.9 million in share repurchases and support $1.3 million in CapEx.
Negative Factors
Segment Performance
Revenue declines were noted in Injection Molding and 3D Printing segments, despite overall positive results.
Valuation Concerns
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.
Proto Labs (PRLB) vs. S&P 500 (SPY)
Market Cap
$976.50M
Dividend YieldN/A
Average Volume (3M)225.31K
Price to Earnings (P/E)68.8
Beta (1Y)1.60
Revenue Growth-1.32%
EPS Growth-21.84%
CountryUS
Employees2,357
SectorIndustrials
Sector Strength90
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.33
Shares Outstanding23,770,640
10 Day Avg. Volume164,046
30 Day Avg. Volume225,310
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 Cap0.90
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda3.67
Forecast
1Y Price Target
$45.00Price Target Upside9.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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 generates revenue primarily through its on-demand manufacturing services, which cater to a diverse array of industries requiring rapid prototyping and low-volume production. The company's key revenue streams include fees from manufacturing services across its 3D printing, CNC machining, injection molding, and sheet metal fabrication offerings. Proto Labs leverages its proprietary software platform to streamline the production process, allowing for quick turnaround times and competitive pricing. Additionally, the company benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, contributing to its sales and profitability.
Proto Labs Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
Main Street Data
Main Street DataProto 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
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.75
Positive
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.80
Positive
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.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| 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
Positive
41.08
Price Trends
36.26
Positive
38.34
Positive
35.64
Positive
Market Momentum
1.59
Negative
67.65
Neutral
59.90
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 41.08 is above the 20-day moving average (MA) of 37.63, above the 50-day MA of 36.26, and above the 200-day MA of 35.64, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 67.65 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $976.50M | 68.81 | 2.22% | ― | -1.32% | -21.84% | |
72 Outperform | $724.83M | 32.38 | 6.61% | 0.32% | -0.33% | -7.06% | |
69 Neutral | $318.99M | 14.44 | 9.40% | ― | -8.42% | 164.82% | |
67 Neutral | $401.54M | 12.42 | 9.13% | ― | 8.06% | 38.46% | |
64 Neutral | $4.42B | 11.99 | 5.16% | 249.23% | 4.02% | -11.68% | |
58 Neutral | $702.52M | 37.86 | -0.78% | 3.44% | -9.04% | -108.47% | |
56 Neutral | $1.31B | ― | 8.26% | 2.38% | -5.74% | -192.12% |
* Industrials Sector Average
Performance Comparison
PRLB
Proto Labs
41.08
9.27
29.14%
IIIN
Insteel Industries
37.34
6.15
19.72%
NWPX
Northwest Pipe Company
40.65
5.13
14.44%
RYI
Ryerson Holdings
21.82
-0.95
-4.17%
MEC
Mayville Engineering Company
15.59
-0.09
-0.57%
CMPO
CompoSecure
12.80
7.24
130.22%
Proto Labs Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: 14.75%|
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 Corporate Events
Stock BuybackBusiness Operations and Strategy
Proto Labs Launches $100 Million Stock Buyback Program
Positive
Feb 7, 2025
Protolabs announced a new $100 million stock repurchase program on February 7, 2025, highlighting its strategic initiative to enhance shareholder value. The company reported a slight decrease in revenue for 2024 compared to 2023, but showed improvements in gross margins and cash flow, reflecting its ongoing transformation efforts and focus on expanding production capabilities.
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.