Proto Labs Inc

PRLB

Fabricated Structural Metal Products

Mkt Cap

$782.5M

PE

39.46

Debt

Cash

$92.8M

EV

FCF

$44.77M

Market Cap

$782.5M

P/E Ratio

39.46

Debt

Cash

$92.8M

EV

FCF

$44.77M

Charts data: {"Earnings":[{"time":"2014-12-30","value":41635000},{"time":"2015-12-30","value":46514000},{"time":"2016-12-30","value":42707000},{"time":"2017-12-30","value":51778000},{"time":"2018-12-30","value":76588000},{"time":"2019-12-30","value":63655000},{"time":"2020-12-30","value":50867000},{"time":"2021-12-30","value":33372000},{"time":"2022-12-30","value":-103462000},{"time":"2023-12-30","value":17220000}],"Sales":[{"time":"2014-12-30","value":209583000},{"time":"2015-12-30","value":264106000},{"time":"2016-12-30","value":298055000},{"time":"2017-12-30","value":344490000},{"time":"2018-12-30","value":445596000},{"time":"2019-12-30","value":458728000},{"time":"2020-12-30","value":434395000},{"time":"2021-12-30","value":488098000},{"time":"2022-12-30","value":488398000},{"time":"2023-12-30","value":503877000}],"Net Margins":[{"time":"2014-12-30","value":0.19865637957277069},{"time":"2015-12-30","value":0.17611867962106123},{"time":"2016-12-30","value":0.14328563520155677},{"time":"2017-12-30","value":0.15030334697669018},{"time":"2018-12-30","value":0.17187766497006257},{"time":"2019-12-30","value":0.138764147817443},{"time":"2020-12-30","value":0.117098493306783},{"time":"2021-12-30","value":0.06837151555630222},{"time":"2022-12-30","value":-0.21183952432237643},{"time":"2023-12-30","value":0.03417500699575492}],"Assets":[{"time":"2014-12-30","value":287514000},{"time":"2015-12-30","value":361036000},{"time":"2016-12-30","value":414241000},{"time":"2017-12-30","value":518738000},{"time":"2018-12-30","value":618985000},{"time":"2019-12-30","value":673667000},{"time":"2020-12-30","value":744204000},{"time":"2021-12-30","value":928582000},{"time":"2022-12-30","value":802168000},{"time":"2023-12-30","value":772353000}],"Stockholders Equity":[{"time":"2014-12-30","value":265539000},{"time":"2015-12-30","value":327645000},{"time":"2016-12-30","value":379833000},{"time":"2017-12-30","value":461215000},{"time":"2018-12-30","value":541497000},{"time":"2019-12-30","value":585790000},{"time":"2020-12-30","value":644356000},{"time":"2021-12-30","value":828493000},{"time":"2022-12-30","value":697648000},{"time":"2023-12-30","value":695295000}],"ROE":[{"time":"2014-12-30","value":0.15679429387020363},{"time":"2015-12-30","value":0.14196462634863954},{"time":"2016-12-30","value":0.1124362548804343},{"time":"2017-12-30","value":0.1122643452619711},{"time":"2018-12-30","value":0.14143753335660217},{"time":"2019-12-30","value":0.10866522132504823},{"time":"2020-12-30","value":0.07894238588606299},{"time":"2021-12-30","value":0.04028036446898163},{"time":"2022-12-30","value":-0.14830114900350894},{"time":"2023-12-30","value":0.02476646603240351}],"ROA":[{"time":"2014-12-30","value":0.21053235668523967},{"time":"2015-12-30","value":0.18796186529875136},{"time":"2016-12-30","value":0.15503293976211915},{"time":"2017-12-30","value":0.14349247597052847},{"time":"2018-12-30","value":0.14807305508211022},{"time":"2019-12-30","value":0.12052393838498843},{"time":"2020-12-30","value":0.08458030325018409},{"time":"2021-12-30","value":0.043444736167619014},{"time":"2022-12-30","value":-0.12201558775717805},{"time":"2023-12-30","value":0.03646907566876804}]}

Proto Labs, Inc., together with its subsidiaries, operates as an e-commerce 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. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

Sector

10-Q
9/30/23
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6/30/23
10-Q
3/31/23
10-K
12/31/22
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3/31/22
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12/31/21
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9/30/21
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3/31/21
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12/31/20
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3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Proto Labs Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$44.77M	$46.93M	$49.2M	$51.58M	$54.07M	$56.68M	$59.42M	$62.29M	$65.29M	$68.45M	$71.75M	$717.5M
DCF		$40.81M	$37.2M	$33.91M	$30.91M	$28.18M	$25.69M	$23.42M	$21.34M	$19.46M	$17.74M	$177.4M
Value	$456M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -7.8%

Earnings Stability 20%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	18%	14%	15%	17%	14%	12%	6.8%	-21%	3.4%	3.9%
ROA	19%	16%	14%	15%	12%	8.5%	4.3%	-12%	3.6%	4%
ROE	14%	11%	11%	14%	11%	7.9%	4%	-15%	2.5%	2.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.31%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -5.11%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.18%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -3.79%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +4.1%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -3.98%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	0.10	-	-	-	-	-	-	-
Debt Equity	-	-	0.01	-	-	-	-	-	-	-
MIN
Graham Stability	-	-	100%	100%	100%	79%	52%	-210%	-	-210%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at -2.10.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.8%	2.5%	5.1%	3.2%	-2.8%
Net Income	-12%	-26%	-30%	-	-7.2%
Stockholders Equity	9%	5.1%	2.6%	-0.34%	-3.1%
FCF	0.41%	4.7%	-9%	12%	-5.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.49%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.85%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -25.81%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -7.15%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +5.13%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -3.05%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +4.74%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -5.58%.