Photronics (PLAB) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 888.79K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.73
• Revenue Growth: -1.79%
• EPS Growth: -22.58%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.51
• Shares Outstanding: 59,004,623
• 10 Day Avg. Volume: 635,898
• 30 Day Avg. Volume: 888,788
• PEG Ratio: 3.15
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 10.78
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $33.00
• Price Target Upside: 37.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $26.00 ▲(8.20% Upside)

Photronics' strong financial performance and positive earnings call results are the primary drivers of its stock score. The company's robust profitability and strategic investments in growth areas are offset by challenges in revenue growth and geopolitical risks.

Photronics Business Overview & Revenue Model

Company Description

Photronics, Inc. (PLAB) is a leading global manufacturer of photomasks, which are essential components in the semiconductor and flat panel display industries. The company specializes in producing high-precision photomasks used in the fabrication of integrated circuits (ICs) and various advanced display technologies. With a focus on innovation and quality, Photronics serves a diverse clientele, including major semiconductor manufacturers and display producers, providing cutting-edge solutions that support the ongoing demand for smaller, more efficient electronic devices.

How the Company Makes Money

Photronics generates revenue primarily through the sale of photomasks, which are critical for the production of semiconductor devices and displays. The company's revenue model is based on contracts with semiconductor manufacturers, where they provide custom photomask solutions tailored to specific manufacturing processes. Key revenue streams include sales of photomasks for both advanced nodes in semiconductor fabrication and for flat panel displays. Additionally, Photronics benefits from long-term partnerships with leading semiconductor firms, which ensures a steady demand for their products. The company also invests in research and development to enhance its photomask technology, enabling it to cater to the evolving needs of the semiconductor industry and maintain a competitive edge.

Photronics Financial Statement Overview

Summary

Photronics demonstrates strong profitability and financial stability, with efficient operations and low leverage. However, recent declines in revenue and free cash flow growth present challenges that need to be addressed to sustain long-term growth.

Income Statement

Photronics shows strong profitability with a consistent gross profit margin around 35-37% and a net profit margin of 12-15% over the years. However, recent revenue growth has been negative, indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins are healthy, reflecting efficient cost management.

Balance Sheet

The company maintains a very low debt-to-equity ratio, indicating strong financial stability and low leverage risk. Return on equity has decreased over time but remains respectable. The equity ratio is solid, suggesting a strong capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow is robust relative to net income, indicating good cash generation from operations. However, free cash flow growth has been negative recently, which could impact future investments. The free cash flow to net income ratio is moderate, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.15M	866.95M	892.08M	824.55M	663.76M	609.69M
Gross Profit	306.60M	315.95M	336.16M	294.21M	167.04M	134.65M
EBITDA	215.64M	330.55M	351.21M	321.22M	194.09M	157.78M
Net Income	108.47M	130.69M	125.48M	179.24M	78.82M	33.82M
Balance Sheet
Total Assets	1.75B	1.71B	1.53B	1.32B	1.29B	1.19B
Cash, Cash Equivalents and Short-Term Investments	575.80M	640.67M	512.21M	358.50M	276.67M	278.67M
Total Debt	27.00K	22.96M	26.53M	42.33M	111.69M	70.83M
Total Liabilities	214.76M	231.30M	250.61M	253.74M	293.64M	225.92M
Stockholders Equity	1.13B	1.12B	975.01M	831.53M	823.69M	804.96M
Cash Flow
Free Cash Flow	64.55M	130.50M	170.88M	162.85M	41.50M	72.07M
Operating Cash Flow	228.34M	261.44M	302.18M	275.19M	150.77M	143.05M
Investing Cash Flow	-188.01M	-156.47M	-101.55M	-147.76M	-103.49M	-65.71M
Financing Cash Flow	-116.59M	-7.73M	-18.49M	-38.69M	-53.90M	-16.01M

Photronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAB, the sentiment is Positive. The current price of 24.03 is above the 20-day moving average (MA) of 23.66, above the 50-day MA of 23.16, and above the 200-day MA of 20.97, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLAB.

Photronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	―	$1.41B	13.61	9.89%	―	-1.79%	-22.58%
HIMX	―	$1.62B	21.68	8.64%	3.98%	-2.16%	-2.77%
VECO	―	$1.76B	28.83	7.83%	―	-0.19%	-28.72%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COHU	―	$1.07B	-12.61	-10.09%	―	-21.27%	-207.30%
UCTT	―	$1.36B	-8.98	-19.47%	―	14.28%	-1644.64%
MXL	―	$1.36B	―	-35.16%	―	7.53%	22.97%

Photronics Corporate Events

Photronics’ Earnings Call: Growth Amid Challenges

Photronics’ Latest Earnings Call: A Mixed Bag of Successes and Challenges

Photronics Reports Strong Q3 2025 Financial Results

Photronics, Inc. is a global leader in photomask technology, providing essential components for integrated circuits and flat panel displays, with operations spanning Asia, Europe, and North America. In its third quarter of fiscal 2025, Photronics reported robust financial results, surpassing expectations in revenue, profitability, and earnings per share. The company achieved a revenue of $210.4 million, with a slight decline from the previous year, while net income attributable to shareholders stood at $22.9 million. Despite a year-over-year revenue drop, the company experienced a significant increase in flat panel display revenue by 14%. Photronics also announced a $25 million increase in its share repurchase authorization, reflecting confidence in its financial stability. Looking ahead, Photronics remains committed to enhancing operational efficiency and geographic diversification to support sustained growth in revenue and earnings.