# Proto Labs (PRLB.US)

Canonical: https://gigainvestors.com/s/PRLB

Analysis as of: 2026-10-16T07:31:19.958Z. Financial observations: FY2009–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $87.41 per share; close as of 2026-10-15.

Estimated value: low $24.82 per share, central $27.48 per share, high $31.03 per share. Buy at or below the central value $27.48 per share. Valuation as of 2026-10-16T07:31:19.958Z; scenarios are not confidence intervals.

Expected annual return: 4.8% at the stated quote. About 4.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.60×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.20×

- FY2019: 0.17×

- FY2020: 0.14×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.05×

- FY2025: 0.05×

- LTM to Jun 2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.8%

- ROIC, second-lowest year: 5.8%

- Typical minus recent gross margin: 3.4 pp

- Typical gross margin (annual median): 47.9%

- Recent gross margin (lower of latest and 3-year median): 44.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.2%

- ROIC including acquisitions, ten-year median: 7.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.9%

- FY2017: 20.6%

- FY2018: 26.4%

- FY2019: 20.3%

- FY2020: 13.2%

- FY2021: 6.5%

- FY2022: 5.8%

- FY2023: 5.7%

- FY2024: 5.8%

- FY2025: 6.5%

### economics: fail

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $64M

- Net income, five-year total: -$15M

- Return on incremental invested capital: -28.2%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 14.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $40M

- FY2022: -$86M

- FY2023: $27M

- FY2024: $43M

- FY2025: $40M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.6% vs 5.8%

- Per-share earnings: 1.77 to 0.66 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: -$166M

- Cumulative retained earnings: $64M

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -11.6%

- Per-share value change: -$1.11

- Per-share value, starting three-year median: $1.77

- Per-share value, ending three-year median: $0.66

- Buybacks concentrated in cheaper years (correlation): -0.42

- Average buyback yield: 2.5%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $238M

- Cumulative net income, 10 years: $271M

- ROIC, first three-year median: 20.6%

- ROIC, last three-year median: 5.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.61

- FY2017: $1.93

- FY2018: $2.81

- FY2019: $2.35

- FY2020: $1.89

- FY2021: $1.21

- FY2022: -$3.77

- FY2023: $0.66

- FY2024: $0.66

- FY2025: $0.88

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -6.8%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 21.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.51×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.8%

- FY2017: -5.8%

- FY2018: -7.5%

- FY2019: -7.8%

- FY2020: -7.5%

- FY2021: -2.4%

- FY2022: -20.6%

- FY2023: -7.3%

- FY2024: -8.2%

- FY2025: -6.8%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 17.6% a year for ten years · sales +5.1%

Story as of 2026-10-16T09:59:26.556Z; price observation 2026-10-15.

Price needs cash profits to grow 17.6% a year for ten years

- 2025-05-02: Proto Labs (NYSE:PRLB) Posts Better-Than-Expected Sales In Q1, Quarterly Revenue Guidance Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/proto-labs-nyse-prlb-posts-101517226.html))

- 2025-08-13: PRLB Q2 Deep Dive: CNC Machining Growth Offsets Margin Pressure, New CEO Prioritizes Execution ([finance.yahoo.com](https://finance.yahoo.com/news/prlb-q2-deep-dive-cnc-034330730.html))

- 2025-11-03: PRLB Q3 Deep Dive: U.S. CNC Growth and Expanded Capabilities Offset Weakness in Europe ([finance.yahoo.com](https://finance.yahoo.com/news/prlb-q3-deep-dive-u-150119130.html))

- 2026-02-06: Proto Labs beats top-line and bottom-line estimates; initiates Q1 and FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4548447-proto-labs-beats-top-line-and-bottom-line-estimates-initiates-q1-and-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5.1%; source https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm; observed 2026-02-20.

- FY2017: $344M 

- FY2018: $446M 

- FY2019: $459M 

- FY2020: $434M 

- FY2021: $488M 

- FY2022: $488M 

- FY2023: $504M 

- FY2024: $501M 

- FY2025: $533M 

- FY2026: $561M 

### Gross margin · FY2025

gross margin 44.5%; source https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm; observed 2026-02-20.

- FY2016: 56.0% 

- FY2017: 56.3% 

- FY2018: 53.6% 

- FY2019: 51.3% 

- FY2020: 50.1% 

- FY2021: 45.6% 

- FY2022: 44.1% 

- FY2023: 44.1% 

- FY2024: 44.6% 

- FY2025: 44.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in metal fabrication; annual sales are USD 533.1 million.

- Source: https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm (filed 2026-02-20); FY2025: revenue 533126999; grossProfit 237137000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRLB.US: Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. It offers manufacturing services, such as molding, computer numerical control machining, 3D printing, and sheet metal to developers, engineers, and supply chain teams. The company was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

### Why customers stay

Margins ranged from 44.1% to 44.6% during 2023–25; it earns 9.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 44.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 44.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 44.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.1692805895962703],[2017,0.20626237584212212],[2018,0.26440463661814856],[2019,0.20308354111244056],[2020,0.1316694727756897],[2021,0.06461309088978863],[2022,0.058342185461680976],[2023,0.0565104865966017],[2024,0.05781519043393453],[2025,0.06518444418704661]]; median 0.09842695848136815. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 44% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.45624239394547816],[2022,0.4411668352450256],[2023,0.4405698216032881]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 43 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 14148863.626763724; upkeep 19467136.373236276; owner earnings 40724863.626763724. Growth capex / owner earnings = 0.34742568462440027.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 14161000; upkeep 18474000; cash acquisitions 110533000; owner earnings 51778000. Growth capex plus acquisitions / owner earnings = 2.408242883077755.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 48039360.455038674; upkeep 39064639.544961326; cash acquisitions 90000; owner earnings 64277360.455038674. Growth capex plus acquisitions / owner earnings = 0.7487762427442031.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 6666572.463484958; upkeep 55563427.53651504; cash acquisitions 0; owner earnings 38955572.46348496. Growth capex plus acquisitions / owner earnings = 0.17113270430652447.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 47010000; cash acquisitions 0; owner earnings 36451000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 34209000; cash acquisitions 127413000; owner earnings 39651000. Growth capex plus acquisitions / owner earnings = 3.213361579783612.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 28116000; cash acquisitions 0; owner earnings 26632000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 9169000; owner earnings 43232000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 14842000; owner earnings 40213000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,7557000],[2021,5862000],[2022,1682000],[2023,3835000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 42963000 USD.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRLB.US SharesStats.PercentInsiders = 1.274 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 17.6% yearly over ten years; actual growth was 1.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.2424757291708977. Price 87.41; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.4313463474437433 → FY2025 1.6585964091282568. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $44.70 per share

- 2016-11: $52.10 per share

- 2016-12: $51.35 per share

- 2017-01: $52.50 per share

- 2017-02: $54.60 per share

- 2017-03: $51.10 per share

- 2017-04: $58.00 per share

- 2017-05: $64.00 per share

- 2017-06: $67.25 per share

- 2017-07: $73.90 per share

- 2017-08: $71.80 per share

- 2017-09: $80.30 per share

- 2017-10: $87.25 per share

- 2017-11: $96.20 per share

- 2017-12: $103.00 per share

- 2018-01: $109.35 per share

- 2018-02: $108.95 per share

- 2018-03: $117.55 per share

- 2018-04: $119.15 per share

- 2018-05: $120.60 per share

- 2018-06: $118.95 per share

- 2018-07: $124.65 per share

- 2018-08: $155.45 per share

- 2018-09: $161.75 per share

- 2018-10: $119.45 per share

- 2018-11: $128.69 per share

- 2018-12: $112.79 per share

- 2019-01: $124.15 per share

- 2019-02: $112.99 per share

- 2019-03: $105.14 per share

- 2019-04: $109.79 per share

- 2019-05: $100.35 per share

- 2019-06: $116.02 per share

- 2019-07: $104.10 per share

- 2019-08: $94.74 per share

- 2019-09: $102.10 per share

- 2019-10: $96.97 per share

- 2019-11: $96.89 per share

- 2019-12: $101.55 per share

- 2020-01: $103.50 per share

- 2020-02: $87.64 per share

- 2020-03: $76.13 per share

- 2020-04: $101.59 per share

- 2020-05: $126.35 per share

- 2020-06: $112.47 per share

- 2020-07: $120.12 per share

- 2020-08: $147.00 per share

- 2020-09: $129.50 per share

- 2020-10: $118.08 per share

- 2020-11: $138.16 per share

- 2020-12: $153.40 per share

- 2021-01: $211.80 per share

- 2021-02: $145.68 per share

- 2021-03: $121.75 per share

- 2021-04: $112.06 per share

- 2021-05: $89.39 per share

- 2021-06: $91.80 per share

- 2021-07: $78.19 per share

- 2021-08: $74.16 per share

- 2021-09: $66.60 per share

- 2021-10: $59.81 per share

- 2021-11: $50.12 per share

- 2021-12: $51.35 per share

- 2022-01: $50.18 per share

- 2022-02: $56.23 per share

- 2022-03: $52.90 per share

- 2022-04: $42.61 per share

- 2022-05: $48.19 per share

- 2022-06: $47.84 per share

- 2022-07: $48.89 per share

- 2022-08: $38.40 per share

- 2022-09: $36.43 per share

- 2022-10: $38.19 per share

- 2022-11: $26.52 per share

- 2022-12: $25.53 per share

- 2023-01: $30.60 per share

- 2023-02: $31.44 per share

- 2023-03: $33.15 per share

- 2023-04: $28.77 per share

- 2023-05: $30.76 per share

- 2023-06: $34.96 per share

- 2023-07: $33.15 per share

- 2023-08: $29.50 per share

- 2023-09: $26.40 per share

- 2023-10: $23.61 per share

- 2023-11: $36.20 per share

- 2023-12: $38.96 per share

- 2024-01: $36.09 per share

- 2024-02: $36.43 per share

- 2024-03: $35.75 per share

- 2024-04: $30.48 per share

- 2024-05: $30.97 per share

- 2024-06: $30.89 per share

- 2024-07: $34.82 per share

- 2024-08: $30.58 per share

- 2024-09: $29.37 per share

- 2024-10: $27.40 per share

- 2024-11: $41.19 per share

- 2024-12: $39.09 per share

- 2025-01: $41.73 per share

- 2025-02: $39.88 per share

- 2025-03: $35.04 per share

- 2025-04: $35.16 per share

- 2025-05: $36.98 per share

- 2025-06: $40.04 per share

- 2025-07: $43.12 per share

- 2025-08: $49.81 per share

- 2025-09: $50.03 per share

- 2025-10: $49.76 per share

- 2025-11: $50.82 per share

- 2025-12: $50.59 per share

- 2026-01: $52.65 per share

- 2026-02: $62.08 per share

- 2026-03: $57.02 per share

- 2026-04: $64.81 per share

- 2026-05: $75.76 per share

- 2026-06: $81.51 per share

- 2026-07: $75.05 per share

- 2026-08: $80.06 per share

- 2026-09: $94.85 per share

- 2026-10: $87.41 per share

## Annual estimated value (USD per share)

- FY2016: low $21.35 per share, central $23.76 per share, high $26.97 per share

- FY2017: low $23.26 per share, central $26.02 per share, high $29.69 per share

- FY2018: low $29.97 per share, central $33.48 per share, high $38.16 per share

- FY2019: low $38.49 per share, central $52.58 per share, high $60.79 per share

- FY2020: low $33.27 per share, central $41.81 per share, high $47.94 per share

- FY2021: low $19.35 per share, central $22.32 per share, high $25.57 per share

- FY2022: low $18.91 per share, central $21.16 per share, high $24.16 per share

- FY2023: low $20.60 per share, central $22.95 per share, high $26.08 per share

- FY2024: low $21.33 per share, central $23.76 per share, high $27.00 per share

- FY2025: low $22.97 per share, central $25.47 per share, high $28.80 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1443669/000144366926000010/prlb-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.