Proto Labs, Inc.
Proto Labs, Inc. Fundamental Analysis
Proto Labs, Inc. (PRLB) shows weak financial fundamentals with a PE ratio of 61.90, profit margin of 3.98%, and ROE of 3.20%. The company generates $0.5B in annual revenue with weak year-over-year growth of -0.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PRLB's fundamental strength across five key dimensions:
Efficiency Score
WeakPRLB struggles to generate sufficient returns from assets.
Valuation Score
ModeratePRLB shows balanced valuation metrics.
Growth Score
WeakPRLB faces weak or negative growth trends.
Financial Health Score
ExcellentPRLB maintains a strong and stable balance sheet.
Profitability Score
WeakPRLB struggles to sustain strong margins.
Key Financial Metrics
Is PRLB Expensive or Cheap?
P/E Ratio
PRLB trades at 61.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PRLB's PEG of 1.42 indicates fair valuation.
Price to Book
The market values Proto Labs, Inc. at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.92 times EBITDA. This signals the market has high growth expectations.
How Well Does PRLB Make Money?
Net Profit Margin
For every $100 in sales, Proto Labs, Inc. keeps $3.98 as profit after all expenses.
Operating Margin
Core operations generate 4.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.20 in profit for every $100 of shareholder equity.
ROA
Proto Labs, Inc. generates $2.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Proto Labs, Inc. produces operating cash flow of $74.55M, showing steady but balanced cash generation.
Free Cash Flow
Proto Labs, Inc. generates strong free cash flow of $65.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.74 in free cash annually.
FCF Yield
PRLB converts 4.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How PRLB Stacks Against Its Sector Peers
| Metric | PRLB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.90 | 24.98 | Worse (Expensive) |
| ROE | 3.20% | 1284.00% | Weak |
| Net Margin | 3.98% | -45683.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.49 | 10.67 | Strong Liquidity |
| ROA | 2.79% | -1542352.00% (disorted) | Weak |
PRLB outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Proto Labs, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.90%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-72.09%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-28.20%
Industry Style: Cyclical, Value, Infrastructure
Declining