PRLB

Proto Labs Inc

TMT, Industrial/Transportation


Presented:11/25/2020
Price:$136.02
Cap:$3.64B
Current Price:$28.33
Cap:$0.71B

Presented

Date11/25/2020
Price$136.02
Market Cap$3.64B
Ent Value$3.35B
P/E Ratio64.75x
Book Value$23.39
Div Yield0%
Shares O/S26.75M
Ave Daily Vol267,948
Short Int29.66%

Current

Price$28.33
Market Cap$0.71B
Proto Labs, Inc. engages in the digital manufacture of custom prototypes and production parts. It offers 3D printing, CNC machining, and injection molding services. The company was founded by Lawrence J. Lukis and Gregg Bloom on May 5, 1999 and is headquartered in Maple Plain, MN.

Publicly traded companies mentioned herein: Flex Ltd (FLEX), Foxconn Technology Co Ltd (2354 TT), Proto Labs Inc (PRLB)

Highlights

The presenter is short shares of Proto Labs Inc (PRLB), a contract manufacturer of early prototype products that owns a fleet of machining products (e.g., 3D printers and tools for sheet metal fabrication, injection molding, etc.). PRLB has traditionally set up booths at industry trade shows and offered to make one or two prototypes for any low volume batches instead of the designer having to use Flex Ltd (FLEX) or Foxconn Technology Co Ltd (2354 TT), and is now transitioning its high touch business online. The presenter views PRLB as an interesting business but he notes that the company’s revenue growth has consistently decelerated due to emerging competition. Despite the deceleration, the stock trades at ~55x the Street’s $2.56 2021 EPS estimate. As this competitive dynamic plays out, the presenter sees significant downside from the current ~$140 share price to ~$80. 

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