Photronics (PLAB) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.47
• Revenue Growth: -2.04%
• EPS Growth: 8.84%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.60
• Shares Outstanding: 59,064,640
• 10 Day Avg. Volume: 1,259,196
• 30 Day Avg. Volume: 1,789,844
• 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: 0.36
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $43.50
• Price Target Upside: 27.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $896.05M

• Rating: 74 Outperform
• Price Target: $26.00 ▼(-24.02% Downside)

Photronics' strong financial performance and attractive valuation are the primary strengths, supported by strategic investments and revenue exceeding expectations. However, technical indicators suggest caution due to bearish momentum, and challenges in the integrated circuits market and geopolitical factors present risks.

Positive Factors

Strong Balance Sheet

Photronics' low debt levels and high equity provide financial stability, reducing risk and enhancing its ability to invest in growth opportunities.

High-End Node Migration

The shift to high-end nodes supports higher revenue per unit, strengthening Photronics' competitive position in the semiconductor industry.

Operational Margin Improvement

Improved operational margins indicate efficient cost management and enhance profitability, supporting long-term financial health.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining sales growth, which could impact future profitability and market position.

Macroeconomic Uncertainty

Macroeconomic uncertainties, such as tariffs, can affect demand and disrupt supply chains, posing risks to Photronics' revenue stability.

Mainstream IC Revenue Decline

Declining mainstream IC revenue suggests challenges in older product lines, potentially affecting overall revenue and necessitating strategic shifts.

Photronics Business Overview & Revenue Model

Company Description

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. The company offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, FDP substrates, and other types of electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.

How the Company Makes Money

Photronics generates revenue primarily through the sale of photomasks to semiconductor and display manufacturers. The company's revenue model is based on the production and delivery of high-precision photomasks that are tailored to specific customer needs. Key revenue streams include sales from standard photomask products, custom photomasks designed for advanced technology nodes, and the provision of related services such as engineering support and design assistance. Significant partnerships with leading semiconductor companies allow Photronics to secure long-term contracts and leverage economies of scale, contributing to its overall earnings. Additionally, as technology continues to advance with the push for smaller and more efficient chips, Photronics benefits from increased demand for its high-end photomask solutions, aligning with industry trends towards miniaturization and enhanced performance.

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	281.17M	330.55M	351.21M	321.22M	194.09M	157.78M
Net Income	108.47M	130.69M	125.48M	118.79M	55.45M	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	45.62M	117.21M	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: 34.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 34.22 is above the 20-day moving average (MA) of 33.49, above the 50-day MA of 28.54, and above the 200-day MA of 22.65, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 57.43 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 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	74 Outperform	$2.02B	15.08	11.89%	―	-2.04%	8.84%
VECO	70 Neutral	$2.06B	39.77	6.12%	―	-3.90%	-41.66%
HIMX	69 Neutral	$1.47B	23.40	7.17%	4.48%	-3.62%	-20.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MXL	60 Neutral	$1.68B	-9.21	-35.16%	―	7.53%	22.97%
COHU	53 Neutral	$1.36B	-18.03	-8.53%	―	-4.50%	-45.79%
UCTT	51 Neutral	$1.97B	-12.23	-20.61%	―	6.65%	-4652.36%

Photronics Corporate Events

Photronics Expands Board, Appoints Independent Finance Executive

On January 1, 2026, Photronics expanded its board of directors from eight to nine members and appointed finance executive Michelle Almeida as an independent director, a move the company announced publicly on January 7, 2026. Almeida, currently vice president of corporate finance and treasurer at Compass Datacenters, brings more than 25 years of experience in treasury and financial planning and analysis, and will receive compensation in line with other non-employee directors, though she has not yet been assigned to any board committees; the appointment underscores Photronics’ effort to deepen financial and strategic expertise at the board level as it pursues its long-term strategy, without any disclosed related-party transactions or special arrangements tied to her election.

The most recent analyst rating on (PLAB) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Photronics stock, see the PLAB Stock Forecast page.

Photronics announces CTO transition and leadership changes

On January 2, 2026, Photronics announced that Executive Vice President and Chief Technology Officer Dr. Christopher J. Progler stepped down from his position effective December 29, 2025, concluding more than two decades of service in which he played a pivotal role in shaping the company’s technology strategy and strengthening its competitive position in integrated circuit and flat panel display photomask markets. Under the terms of his employment agreement, Progler will receive severance equal to one year of base salary, continued medical and dental coverage for 360 days, and accrued obligations, and he is considering an advisory role to support continuity on strategic priorities, as Photronics underscores its intention to maintain disciplined operational execution and long-term value creation for shareholders despite the leadership transition.

The most recent analyst rating on (PLAB) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Photronics stock, see the PLAB Stock Forecast page.