Proto Labs, Inc. (NYSE: PRLB)Proto Labs, Inc. (NYSE: PRLB)
Market Capitalization: $897.3M
Quant Rating: Strong Buy
Quant Sector Ranking (as of 1/10/25): 42 out of 613
Quant Industry Ranking (as of 1/10/25): 4 out of 73
PRLB could be a compelling opportunity to buy the dip. Despite falling around 16% over the past month, the company reported industry-leading profitability and $24.8M in cash flows in Q3’24, the highest seen since its 2020 acquisition of 3D-printing parts manufacturer 3D Hubs. Headquartered in Minnesota, Proto Labs specializes in on-demand manufacturing solutions for a wide range of companies, eliminating the need for them to stock large quantities of products.
Proto Labs has registered five upward EPS revisions and five upward revenue revisions over the last 90 days. The more professional analysts’ earnings per share revisions associated with a stock, the more it's deemed to have higher-than-expected earnings growth compared to its sector in the long term. Strong sector tailwinds are also on PRLB’s side: The global print-on-demand market size was valued at $6.18B in 2022 and is expected to grow at a CAGR of 25.8% through 2030.
PRLB Valuation
PRLB has a long-term growth rate of 25%, over 119% higher than the sector’s 11.4%, and YoY capital expenditure (capex) growth of 74.4%, 1,612.85% higher than the sector’s 4.3%—suggesting that it's reinvesting significant cash back into its operations.
The company is fairly valued with a forward PEG of 0.98, a -51.39 difference from the sector. Its price-to-book ratio (TTM) of 1.36 is also a green flag at a -52.83% difference from the sector, while its ‘D’-rated forward and trailing P/E figures of 39.9 and 48.8, respectively, reflect its dipping share price, bringing the overall Valuation Grade to a ‘C’.
