Proto Labs (PRLB) Stock Analysis & Winston Score

Proto Labs is a manufacturing company that makes custom parts very quickly for engineers and product designers. Customers upload a 3D design file online, and Proto Labs produces the part using methods like 3D printing, CNC machining, and injection molding. It serves industries such as medical devices, aerospace, electronics, and consumer products — essentially any business that needs small batches of custom parts fast.

The company makes money by charging per order, with pricing generated automatically by its software when a customer uploads a design. Proto Labs operates primarily in the United States and Europe, and its main competitive advantage is speed and automation — its software can quote and manufacture parts far faster than traditional machine shops. However, growth faces pressure from increasing competition, including other digital manufacturing platforms and in-house 3D printing becoming more affordable, which could reduce demand for outsourced rapid prototyping over time.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+126.7% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

1.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$124M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Proto Labs is a rare growth stock that's already generating positive cash flow while growing at 10%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

45.6%

Healthy — 45.6% gross margin

Operating Margin

8.1%

Modest — 8.1% operating margin

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+9.4%

Steady sales growth (9.4% YoY)

EPS YoY

+79.0%

Earnings growing fast (79.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

286%

Turns 286% of profit into real cash

FCF Margin

10.9%

Modest free cash flow (10.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

71.4x

no trend

Expensive — P/E 71.4

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+33.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (71.4 → 38.4)

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Dividends

Not applicable for this business.

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