Photronics (PLAB) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 612.27K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.78
• Revenue Growth: -3.85%
• EPS Growth: 5.95%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): 0.52
• Shares Outstanding: 63,561,710
• 10 Day Avg. Volume: 429,237
• 30 Day Avg. Volume: 612,268
• PEG Ratio: 0.71
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $23.00 ▲( 18.13% Upside)

Photronics' overall stock score of 80 reflects its strong financial health and attractive valuation, which are bolstered by robust profitability and low leverage. Technical indicators suggest potential for upward momentum, although longer-term trends remain challenging. Despite some revenue and geopolitical challenges, the company's strong earnings performance and strategic shifts indicate potential for future growth.

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 primarily generates revenue through the sale of photomasks to semiconductor and flat panel display manufacturers. The company's key revenue streams include contracts and sales agreements with major technology companies that require photomasks for their production processes. Photronics benefits from long-term partnerships with leading semiconductor firms, which ensure a consistent demand for its products. Additionally, the company invests in state-of-the-art technology and equipment to maintain its competitive edge in the rapidly evolving electronics industry, thus enhancing its profitability. Photronics' global presence, with facilities in North America, Europe, and Asia, allows it to serve a diverse customer base and capitalize on growth opportunities in various geographic markets.

Photronics Financial Statement Overview

Summary

Photronics exhibits strong financial health characterized by robust profitability, effective equity usage, and efficient cash flow management. Despite a slight challenge in revenue growth, the company's low leverage and strong cash flow ratios position it well for future stability and growth in the semiconductor industry.

Income Statement

Photronics demonstrates strong profitability with a consistent gross profit margin and improving net profit margin over the years. The TTM data shows a gross profit margin of 36.18% and a net profit margin of 17.08%. However, there is a slight decline in revenue from the previous annual report, suggesting a potential challenge in revenue growth.

Balance Sheet

The company maintains a solid financial position with a very low debt-to-equity ratio of 0.0018 and a high equity ratio of 87.67% in the TTM period. The return on equity is strong at 9.86%, indicating effective use of equity. The low leverage reduces financial risk significantly.

Cash Flow

Photronics shows robust cash flow management with an impressive free cash flow growth and a strong operating cash flow to net income ratio of 2.02 in the TTM period. The free cash flow to net income ratio of 1.19 further underscores efficient cash utilization.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
862.75M	866.95M	892.08M	824.55M	663.76M	609.69M
	Gross Profit
312.23M	315.95M	336.16M	294.21M	167.04M	134.65M
	EBIT
216.12M	221.52M	253.05M	211.87M	94.55M	-29.89M
	EBITDA
354.02M	221.52M	351.21M	321.22M	194.09M	157.78M
	Net Income Common Stockholders
147.36M	130.69M	125.48M	179.24M	78.82M	33.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.94M	640.67M	512.21M	358.50M	276.67M	278.67M
	Total Assets
703.88M	1.71B	1.53B	1.32B	1.29B	1.19B
	Total Debt
90.32M	18.00M	26.53M	42.33M	111.69M	70.83M
	Net Debt
-8.63M	-580.49M	-472.76M	-277.35M	-164.98M	-207.83M
	Total Liabilities
207.94M	231.30M	250.61M	253.74M	293.64M	225.92M
	Stockholders Equity
441.80M	1.12B	975.01M	831.53M	823.69M	804.96M
Cash Flow		Free Cash Flow
175.57M	130.50M	170.88M	162.85M	41.50M	72.07M
	Operating Cash Flow
298.40M	261.44M	302.18M	275.19M	150.77M	143.05M
	Investing Cash Flow
-107.41M	-156.47M	-101.55M	-147.76M	-103.49M	-65.71M
	Financing Cash Flow
-25.34M	-7.73M	-18.49M	-38.69M	-53.90M	-16.01M

Photronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 19.47 is below the 20-day moving average (MA) of 19.64, below the 50-day MA of 19.53, and below the 200-day MA of 22.57, indicating a bearish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLAB.

Photronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	80 Outperform	$1.26B	8.42	13.70%	―	-3.85%	5.95%
ACLS	77 Outperform	$1.90B	10.82	18.45%	―	-15.14%	-28.30%
VECO	73 Outperform	$1.16B	18.26	8.68%	―	3.30%	―
SIMO	70 Outperform	$2.19B	23.29	12.33%	3.08%	10.78%	58.82%
HIMX	70 Neutral	$1.48B	16.84	9.79%	3.41%	0.61%	80.97%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
UCTT	59 Neutral	$915.17M	32.81	3.30%	―	20.20%	―

Photronics Corporate Events

Photronics Appoints New CFO Eric Rivera

On April 30, 2025, Photronics, Inc. entered into an Employment Agreement with Eric Rivera, the Executive Vice President and Chief Financial Officer. The agreement outlines Mr. Rivera’s compensation, benefits, and conditions for termination, including provisions for severance and non-compete clauses, impacting the company’s executive management structure and potentially its strategic operations.

Photronics Solidifies Leadership with New Executive Agreement

On April 11, 2025, Photronics, Inc. entered into an Employment Agreement with its Executive Chairman, George C. Macricostas. The agreement outlines his compensation, including a base salary of $500,000 and eligibility for annual bonuses, with provisions for termination benefits and non-compete clauses. This move solidifies leadership stability and outlines clear terms for executive compensation, potentially impacting the company’s strategic direction and stakeholder confidence.