Photronics (PLAB) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 503.76K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.69
• Revenue Growth: -3.19%
• EPS Growth: -11.06%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): 0.40
• Shares Outstanding: 60,150,513
• 10 Day Avg. Volume: 414,034
• 30 Day Avg. Volume: 503,758
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 3.30
• 1Y Price Target: $26.25
• Price Target Upside: 18.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $22.50 ▲(1.90% Upside)

Photronics' overall stock score reflects a strong financial position with low debt and efficient cost management, contributing significantly to the score. The technical analysis indicates short-term bullish momentum, although long-term caution is advised. Valuation suggests the stock may be undervalued, providing potential upside. The earnings call highlighted strategic achievements but also noted revenue declines and macroeconomic uncertainties, balancing the outlook.

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 displays a strong balance sheet with high equity and low debt, indicating financial stability. However, there is a slight decline in net income and free cash flow growth, suggesting careful management is needed to maintain financial health.

Income Statement

Photronics has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2024. However, the TTM revenue has slightly decreased compared to 2024. Gross profit and EBITDA margins have remained strong, indicating efficient cost management. The net profit margin has declined in the TTM period due to a reduction in net income. Overall, the income statement shows a stable financial performance with potential for improvement in net income.

Balance Sheet

The company maintains a strong balance sheet with a high equity ratio, indicating financial stability and low reliance on debt. The debt-to-equity ratio is exceptionally low, showcasing minimal leverage risk. Return on equity is healthy, though it has slightly decreased in the TTM period. The company's assets have shown a steady increase, reflecting growth and expansion capabilities.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow generation, although there is a slight decline in the TTM period. Operating cash flow remains strong and consistently exceeds net income, suggesting efficient cash management. However, the reduction in free cash flow growth rate signals a need for cautious capital expenditure management moving forward.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	866.95M	892.08M	824.55M	663.76M	609.69M
Gross Profit	315.95M	336.16M	294.21M	167.04M	134.65M
EBITDA	330.55M	351.21M	321.22M	194.09M	157.78M
Net Income	130.69M	125.48M	179.24M	78.82M	33.82M
Balance Sheet
Total Assets	1.71B	1.53B	1.32B	1.29B	1.19B
Cash, Cash Equivalents and Short-Term Investments	640.67M	512.21M	358.50M	276.67M	278.67M
Total Debt	18.00M	26.53M	42.33M	111.69M	70.83M
Total Liabilities	231.30M	250.61M	253.74M	293.64M	225.92M
Stockholders Equity	1.12B	975.01M	831.53M	823.69M	804.96M
Cash Flow
Free Cash Flow	130.50M	170.88M	162.85M	41.50M	72.07M
Operating Cash Flow	261.44M	302.18M	275.19M	150.77M	143.05M
Investing Cash Flow	-156.47M	-101.55M	-147.76M	-103.49M	-65.71M
Financing Cash Flow	-7.73M	-18.49M	-38.69M	-53.90M	-16.01M

Photronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.08
• 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 22.08 is above the 20-day moving average (MA) of 20.69, above the 50-day MA of 19.81, and above the 200-day MA of 21.29, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.29 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
ACLS	78 Outperform	$2.47B	16.62	16.19%	―	-19.38%	-33.03%
PLAB	74 Outperform	$1.26B	11.49	11.23%	―	-3.19%	-11.06%
SIMO	70 Outperform	$2.50B	31.00	10.16%	2.60%	-0.29%	1.47%
VECO	70 Neutral	$1.46B	23.57	7.83%	―	-0.19%	-28.72%
HIMX	59 Neutral	$1.31B	17.50	8.64%	4.73%	-2.16%	-2.77%
Sector *	57 Neutral	HK$14.66B	10.33	-0.76%	4.28%	7.00%	-31.51%
UCTT	53 Neutral	$1.04B	38.78	-19.47%	―	14.28%	-1644.64%

Photronics Corporate Events

Photronics Amends CEO Employment Agreement

On June 27, 2025, Photronics, Inc. announced an amended employment agreement with its CEO, George C. Macricostas, effective from May 28, 2025. The agreement outlines his compensation, including a base salary of $675,000 and eligibility for annual bonuses, and specifies terms for termination benefits and non-compete clauses, impacting the company’s leadership stability and strategic focus.

The most recent analyst rating on (PLAB) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Photronics stock, see the PLAB Stock Forecast page.

Photronics Appoints New CEO Amid Leadership Transition

On May 24, 2025, Dr. Frank Lee announced his intention to retire from Photronics, Inc. within the next two years, stepping down as CEO but continuing to oversee the company’s Asia operations and remaining Chairman and President of the PDMC subsidiary in Taiwan. George Macricostas, a seasoned investor and entrepreneur with extensive experience in business operations and IT, has assumed the role of CEO while continuing as Chairman of the Board. Photronics reported a revenue of $211 million for the second quarter of fiscal 2025, a slight decrease from previous periods, and executed a strategic stock repurchase of $72 million, indicating confidence in its long-term business model.