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Proto Labs Inc. (PRLB)
NYSE:PRLB
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Proto Labs
(NYSE:PRLB)
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Rating:70Outperform
Price Target:
$57.00
▲(3.77% 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 (PRLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)131.78K
Price to Earnings (P/E)89.7
Beta (1Y)1.17
Revenue Growth2.82%
EPS Growth-34.29%
CountryUS
Employees2,357
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.47
Shares Outstanding23,678,745
10 Day Avg. Volume110,323
30 Day Avg. Volume131,784
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.46
Price to Sales (P/S)1.96
P/FCF Ratio14.29
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$55.00Price Target Upside0.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Proto Labs is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Proto Labs is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyProto Labs Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted record-breaking revenue and strong growth in CNC machining, alongside improvements in revenue per customer and expansion of capabilities. However, challenges persist with declines in 3D printing revenue, weak European market performance, and a decrease in unique developers. Despite these challenges, the company shows strong cash generation and strategic leadership enhancements.Q3-2025 Updates
Positive Updates
Record Quarterly Revenue
Revenue grew 7.8% year-over-year to a quarterly record of $135.4 million, driven by strong demand in the U.S. CNC machining and sheet metal offerings.
Significant Growth in CNC Machining
CNC machining revenue grew 18.2% year-over-year, with U.S. CNC machining revenue up 24% year-over-year, fueled by demand in aerospace, defense, drones, satellites, and space exploration.
Improved Revenue Per Customer
Revenue per customer increased almost 15% year-over-year, showing increased share of wallet with large and strategic customers.
Expansion of Advanced CNC Machining Capabilities
Launch of advanced CNC machining capabilities including tighter tolerances, diverse finishes, and fast quality documentation, now available via e-commerce platform.
Recognition and Leadership Enhancement
Named one of America's Best-in-State Employers by Forbes and appointed Marc Kermisch as Chief Technology and AI Officer to strengthen leadership.
Strong Cash Generation and Shareholder Returns
Generated $29.1 million of cash from operations and returned $12.8 million to shareholders through repurchases, with $138.4 million of cash and investments and $0 debt.
Negative Updates
Decline in 3D Printing Revenue
3D printing revenue declined 6.3% year-over-year, driven by weak demand in Europe.
Weak European Market Performance
Revenue in Europe declined 5% in constant currencies due to continued contraction in European manufacturing activity.
Flat Performance in Injection Molding
Injection molding grew only 2% year-over-year, with weak prototyping demand affecting performance.
Decrease in Unique Developers
The number of unique developers has reached a 3-year low, indicating challenges in attracting new customers.
Company Guidance
During Proto Labs' Third Quarter 2025 earnings call, the company provided several key metrics and guidance for future performance. The company reported a record quarterly revenue of $135.4 million, reflecting a 7.8% increase year-over-year. The CNC machining segment saw significant growth, with a year-over-year increase of 18.2%, and the U.S. CNC machining revenue grew by 24%. Additionally, the company highlighted strong performance in various sectors, including aerospace and defense, and industrial and commercial machinery, with notable growth in areas like drones, satellites, and space exploration. The revenue per customer increased by nearly 15% year-over-year, and the adoption of combined factory and network fulfillment offerings rose by 35% from the previous quarter. For the fourth quarter of 2025, Proto Labs offered revenue guidance between $125 million and $133 million, anticipating a 6% growth at the midpoint. The company also provided non-GAAP earnings per share guidance ranging from $0.30 to $0.38.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
Positive
54.93
Price Trends
51.08
Positive
50.83
Positive
44.83
Positive
Market Momentum
0.67
Negative
64.24
Neutral
94.96
Negative
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 54.93 is above the 20-day moving average (MA) of 52.70, above the 50-day MA of 51.08, and above the 200-day MA of 44.83, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 94.96 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $611.65M | 17.31 | 9.78% | ― | 7.61% | 25.35% | |
73 Outperform | $637.95M | 15.81 | 11.36% | 3.49% | 22.39% | 112.75% | |
70 Outperform | $1.30B | 89.65 | 2.21% | ― | 2.82% | -34.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $371.62M | 31.84 | 5.06% | ― | -12.38% | -0.71% | |
54 Neutral | $261.83M | 22.75 | 1.26% | ― | -3.42% | ― | |
52 Neutral | $885.11M | -38.60 | -2.81% | 2.84% | -4.89% | -214.50% |
* Industrials Sector Average
PRLB
Proto Labs
54.93
18.32
50.04%
IIIN
Insteel Industries
32.89
9.70
41.81%
NWPX
Northwest Pipe Company
63.65
18.46
40.85%
TG
Tredegar
7.50
0.08
1.08%
RYI
Ryerson Holdings
27.48
9.94
56.67%
MEC
Mayville Engineering Company
18.29
3.61
24.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.