Photronics (PLAB)
NASDAQ:PLAB
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Photronics
(NASDAQ:PLAB)
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Rating:80Outperform
Price Target:
$57.00
▲(17.82% Upside)
Action:Reiterated
Date:04/22/26
The score is primarily supported by strong financial health (especially the near-zero leverage balance sheet) and solid profitability, reinforced by a constructive earnings update with strong high-end demand and cash generation. Offsetting factors are weaker free cash flow conversion, overbought technical conditions, and execution/visibility risks highlighted in guidance (short backlog and elevated CapEx).
Positive Factors
Conservative balance sheet / low leverage
Near‑zero debt and an expanding equity base provide durable financial flexibility to fund elevated CapEx, absorb semiconductor cyclicality, and finance expansion without materially increasing leverage. This reduces solvency risk and supports strategic investments over multiple quarters.
Negative Factors
Very limited order visibility / short backlog
A 1–3 week typical backlog creates persistent revenue and cash‑flow volatility and complicates multi‑quarter planning. High sensitivity to a few high‑ASP orders makes revenue and margins lumpy, challenging capacity planning and stable utilization over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Near‑zero debt and an expanding equity base provide durable financial flexibility to fund elevated CapEx, absorb semiconductor cyclicality, and finance expansion without materially increasing leverage. This reduces solvency risk and supports strategic investments over multiple quarters.
Read all positive factors
Photronics (PLAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.80B
Dividend YieldN/A
Average Volume (3M)818.53K
Price to Earnings (P/E)12.1
Beta (1Y)1.37
Revenue Growth-0.06%
EPS Growth-1.01%
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.34
Shares Outstanding58,966,393
10 Day Avg. Volume772,162
30 Day Avg. Volume818,526
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)1.21
Price to Sales (P/S)1.68
P/FCF Ratio23.88
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit7.90
Enterprise Value/Ebitda8.10
Forecast
1Y Price Target
$51.50Price Target Upside6.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.26
Revenue Forecast (FY)$886.20M
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 ma...
How the Company Makes Money
Photronics makes money primarily by selling photomasks and related mask services to semiconductor and display manufacturers. Its revenue model is largely project- and volume-based: customers place orders for specific mask sets required to manufact...
Photronics Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and financial performance: revenue growth, record high-end IC sales, strong margins, and robust operating cash flow. Management has clear strategic initiatives—technology leadership, geographic expansion (U.S., Korea), and prioritized high-end opportunities—that support future growth. Near-term cautions include a seasonal Q2 revenue dip due to Chinese New Year, limited order visibility (1–3 week backlog), capacity constraints until expansions and qualifications complete, elevated fiscal 2026 CapEx (which will raise depreciation), and competitive pressure in China’s mainstream segment. On balance, the positives (growth, record high-end demand, strong profitability and cash generation, and clear expansion strategy) outweigh the near-term headwinds and execution risks.Positive Updates
FPD Performance and Technology Leadership
FPD revenue of $60.0M, up 3% year-over-year. Installed a most-advanced mask writer in Korea enabling G8.6 AMOLED capability — first supplier with this tool — positioning the company for higher ASP opportunities as G8.6 adoption broadens.
Negative Updates
Near-Term Seasonal Headwind and Q2 Revenue Guidance Decline
Fiscal Q2 revenue guidance of $212.0M–$220.0M implies a sequential decline versus Q1 (~2.2% to 5.8% lower than $225.0M), with management attributing the shortfall primarily to the Chinese New Year holiday impact and related temporary slowdown.
Read all updates
Q1-2026 Updates
Positive
Negative
FPD Performance and Technology Leadership
FPD revenue of $60.0M, up 3% year-over-year. Installed a most-advanced mask writer in Korea enabling G8.6 AMOLED capability — first supplier with this tool — positioning the company for higher ASP opportunities as G8.6 adoption broadens.
Read all positive updates
Company Guidance
For fiscal Q2 the company guided revenue of $212 million to $220 million, an operating margin of 22%–24% and non‑GAAP diluted EPS of $0.49–$0.55, citing a modest seasonal impact from Chinese New Year and limited visibility with typical backlog of only 1–3 weeks (and noting high‑end orders carry materially higher ASPs). For context, fiscal Q1 revenue was $225 million (up 4% sequentially, 6% year‑over‑year), with IC revenue $165 million (up 7% YoY) including record high‑end IC revenue of $71 million (up 19%), FPD revenue $60 million (up 3% YoY), gross margin at 35% (high end of expectations), operating margin 24%, GAAP diluted EPS $0.74 and non‑GAAP diluted EPS $0.61; operating cash flow was $97 million (43% of revenue) and Q1 CapEx was $48 million, while full‑year fiscal 2026 CapEx remains at $330 million; total cash and short‑term investments rose to $637 million (including $459 million in JVs, 50.1% ownership), and the company reiterated elevated CapEx plans to expand high‑end capacity.Photronics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
93
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 862.22M | 849.29M | 866.95M | 892.08M | 824.55M | 663.76M |
| Gross Profit | 303.00M | 299.83M | 315.95M | 336.16M | 294.21M | 167.04M |
| EBITDA | 295.73M | 299.39M | 330.55M | 351.21M | 321.22M | 194.09M |
| Net Income | 136.49M | 136.41M | 130.69M | 125.48M | 118.79M | 55.45M |
Balance Sheet | ||||||
| Total Assets | 1.90B | 1.80B | 1.71B | 1.53B | 1.32B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 636.87M | 588.16M | 640.67M | 512.21M | 358.50M | 276.67M |
| Total Debt | 21.00K | 5.96M | 22.96M | 26.53M | 45.62M | 117.21M |
| Total Liabilities | 251.50M | 207.23M | 231.30M | 250.61M | 253.74M | 293.64M |
| Stockholders Equity | 1.21B | 1.17B | 1.12B | 975.01M | 831.53M | 823.69M |
Cash Flow | ||||||
| Free Cash Flow | 65.92M | 59.66M | 130.50M | 170.88M | 162.85M | 41.50M |
| Operating Cash Flow | 266.59M | 247.80M | 261.44M | 302.18M | 275.19M | 150.77M |
| Investing Cash Flow | -286.02M | -238.90M | -156.47M | -101.55M | -147.76M | -103.49M |
| Financing Cash Flow | -94.03M | -115.26M | -7.73M | -18.49M | -38.69M | -53.90M |
Photronics Technical Analysis
Neutral
48.38
Price Trends
44.61
Positive
40.08
Positive
32.03
Positive
Market Momentum
1.10
Positive
42.24
Neutral
12.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAB, the sentiment is Neutral. The current price of 48.38 is below the 20-day moving average (MA) of 50.52, above the 50-day MA of 44.61, and above the 200-day MA of 32.03, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLAB.
Photronics Risk Analysis
Photronics disclosed 1 risk factors in its most recent earnings report. Photronics reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Photronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.80B | 12.15 | 11.84% | ― | -0.06% | -1.01% | |
68 Neutral | $2.09B | -29.19 | -6.91% | ― | 23.10% | 35.49% | |
66 Neutral | $3.40B | -1,578.41 | 2.64% | ― | -7.71% | -66.03% | |
62 Neutral | $3.16B | 42.83 | 3.60% | 4.48% | -10.57% | -62.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $7.83B | -8.44 | -28.42% | ― | 40.89% | 42.62% | |
58 Neutral | $3.48B | -37.25 | -28.05% | ― | -3.24% | -786.94% |
* Technology Sector Average
PLAB
Photronics
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128.74%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.