Photronics, Inc.
Photronics, Inc. Fundamental Analysis
Photronics, Inc. (PLAB) shows moderate financial fundamentals with a PE ratio of 14.15, profit margin of 15.83%, and ROE of 11.84%. The company generates $0.9B in annual revenue with weak year-over-year growth of -2.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PLAB's fundamental strength across five key dimensions:
Efficiency Score
WeakPLAB struggles to generate sufficient returns from assets.
Valuation Score
ModeratePLAB shows balanced valuation metrics.
Growth Score
WeakPLAB faces weak or negative growth trends.
Financial Health Score
ExcellentPLAB maintains a strong and stable balance sheet.
Profitability Score
ModeratePLAB maintains healthy but balanced margins.
Key Financial Metrics
Is PLAB Expensive or Cheap?
P/E Ratio
PLAB trades at 14.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PLAB's PEG of 6.48 indicates potential overvaluation.
Price to Book
The market values Photronics, Inc. at 1.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.51 times EBITDA. This is generally considered low.
How Well Does PLAB Make Money?
Net Profit Margin
For every $100 in sales, Photronics, Inc. keeps $15.83 as profit after all expenses.
Operating Margin
Core operations generate 24.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.84 in profit for every $100 of shareholder equity.
ROA
Photronics, Inc. generates $7.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Photronics, Inc. generates strong operating cash flow of $272.45M, reflecting robust business health.
Free Cash Flow
Photronics, Inc. produces free cash flow of $67.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
PLAB converts 3.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How PLAB Stacks Against Its Sector Peers
| Metric | PLAB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.15 | 34.43 | Better (Cheaper) |
| ROE | 11.84% | 1135.00% | Weak |
| Net Margin | 15.83% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 4.58 | 5.77 | Strong Liquidity |
| ROA | 7.18% | -310462.00% (disorted) | Weak |
PLAB outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Photronics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
338.92%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
88.52%
Industry Style: Growth, Innovation, High Beta
High Growth