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Photronics (PLAB)
NASDAQ:PLAB
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Photronics
(NASDAQ:PLAB)
74Outperform
Photronics (PLAB) vs. S&P 500 (SPY)
Market Cap
$1.31B
Dividend YieldN/A
Average Volume (3M)681.97K
Price to Earnings (P/E)8.7
Beta (1Y)2.04
Revenue Growth-3.85%
EPS Growth5.95%
CountryUS
Employees1,900
SectorTechnology
Sector Strength44
IndustrySemiconductors
Share Statistics
EPS (TTM)2.36
Shares Outstanding63,561,710
10 Day Avg. Volume723,639
30 Day Avg. Volume681,969
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)N/A
Price to Sales (P/S)1.54
Price to Cash Flow (P/CF)4.90
P/FCF Ratio13.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Photronics Business Overview & Revenue Model
Company DescriptionPhotronics, Inc. (PLAB) is a leading global supplier in the semiconductor photomask industry. The company operates in the electronics sector, specializing in the production of photomasks, which are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits and flat panel displays. Photronics serves a diverse customer base including semiconductor manufacturers and electronics companies, supporting their needs for precise and high-quality photomasks across various technology nodes.
How the Company Makes MoneyPhotronics generates revenue primarily through the design, manufacture, and sale of photomasks. The company's key revenue streams include sales to semiconductor manufacturers, which require photomasks for the production of integrated circuits, and sales to flat panel display manufacturers. Photronics benefits from its technological expertise and ability to produce photomasks that support advanced semiconductor nodes, which are essential for the latest electronic devices. The company's strategic partnerships with leading technology firms and its global presence in key markets enhance its ability to capture demand across different geographies and customer segments. Additionally, Photronics invests in research and development to maintain its competitive edge and meet the evolving needs of the semiconductor industry.
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.82
Very Positive
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.88
Very Positive
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.85
Very Positive
| 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
Negative
20.60
Price Trends
21.91
Negative
23.31
Negative
23.75
Negative
Market Momentum
-0.20
Negative
42.58
Neutral
33.35
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 20.6 is below the 20-day moving average (MA) of 21.14, below the 50-day MA of 21.91, and below the 200-day MA of 23.75, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLAB.
Photronics Risk Analysis
Photronics disclosed 31 risk factors in its most recent earnings report. Photronics reported the most risks in the “Finance & Corporate” 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $93.21B | 22.06 | 50.42% | 1.18% | 13.21% | 27.25% | |
77 Outperform | $89.51B | 28.33 | 96.81% | 0.94% | 12.19% | 20.80% | |
76 Outperform | $117.85B | 18.98 | 35.19% | 1.10% | 4.45% | -10.01% | |
76 Outperform | $262.72B | 32.39 | 48.13% | 0.85% | 2.53% | -3.33% | |
74 Outperform | $1.31B | 8.74 | 13.70% | ― | -3.85% | 5.95% | |
73 Outperform | $13.39B | 24.93 | 20.29% | 0.58% | 5.52% | 16.59% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% |
* Technology Sector Average
Performance Comparison
PLAB
Photronics
20.76
-8.02
-27.87%
AMAT
Applied Materials
145.12
-61.83
-29.88%
ASML
ASML Holding
674.58
-311.32
-31.58%
KLAC
KLA
679.80
-24.79
-3.52%
LRCX
Lam Research
72.70
-24.41
-25.14%
TER
Teradyne
82.60
-29.90
-26.58%
Photronics Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -0.48% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Photronics showcased strong profitability, cash flow, and technological advancements in high-end IC and FPD segments, it faced challenges with revenue decline, mainstream IC weakness, and geopolitical uncertainties. The sentiment is balanced with significant achievements countered by notable challenges.Highlights
Strong EPS Performance
Diluted EPS of $0.52 was above the high end of guidance, indicating strong profitability and financial performance.
High-End IC Business Growth
High-end IC business increased to 39% of ASPs in Q1, up from 36% in fiscal 2024, with particular strength in the 14 to 22 nanometer geometry ranges.
Robust Cash Flow Generation
Generated $78 million in operating cash flow, representing 37% of total revenue, maintaining a strong cash balance of $642 million.
Technological Leadership in FPD
Market leader in FPD photomasks due to technological superiority and manufacturing footprint, maintaining revenue despite market headwinds.
G8.6 AMOLED Display Orders
Received first orders for G8.6 AMOLED displays, which require more advanced masks with higher ASPs, marking a milestone for the company.
Lowlights
Overall Revenue Decline
Total revenue declined 5% sequentially, with IC revenue declining 6% quarter over quarter, reflecting broader semiconductor industry softness.
Mainstream IC Weakness
Mainstream IC declined 9%, impacted by weakness in automotive and industrial applications and increased competition from local Chinese suppliers.
Geopolitical and Economic Uncertainty
Caution expressed due to macroeconomic conditions and geopolitical tensions affecting demand visibility for the second half of 2025.
Regional Weakness in Europe
Sales generated out of European facilities were weaker than anticipated, with expectations for continued weakness.
Company Guidance
During Photronics' fiscal first-quarter 2025 conference call, the company provided guidance indicating expected second-quarter revenue between $208 million and $216 million, with non-GAAP earnings per share projected to range from $0.44 to $0.50 per diluted share. The operating margin is anticipated to be between 23% and 25%. The first-quarter results showed revenue of $212 million, a sequential decline of 5%, with IC revenue dropping by 6% to $154 million and FPD revenue remaining stable at $58 million. Despite the revenue decline, diluted non-GAAP EPS was $0.52, surpassing the high end of guidance. The company generated $78 million in operating cash flow and plans to spend $200 million on CapEx for 2025, with a significant portion allocated to U.S. expansion. Photronics continues to focus on high-end business, with high-end ASPs increasing from 30% in fiscal 2023 to 39% in the first quarter of fiscal 2025. The company remains cautious about macroeconomic and geopolitical conditions impacting the second half of 2025.Photronics Corporate Events
Executive/Board ChangesShareholder Meetings
Photronics Board Member Walter Fiederowicz to Depart
Neutral
Jan 24, 2025
On January 21, 2025, Walter M. Fiederowicz, an independent member of Photronics’ Board of Directors, announced his decision not to stand for re-election at the upcoming annual shareholder meeting. His decision was not due to any disagreements with the company regarding its operations, policies, or practices.
Executive/Board Changes
Photronics Appoints George Macricostas as Executive Chairman
Neutral
Jan 10, 2025
Photronics, Inc. has appointed George C. Macricostas as Executive Chairman, effective January 6, 2025. With over 30 years of experience in business operations and IT, Macricostas has been a significant member of the company’s Board of Directors since 2002. His transition to Executive Chairman is expected to further influence Photronics’ strategic direction and growth. This appointment results in both George Macricostas and his father, Deno Macricostas, no longer being considered independent directors, leaving the board with nine directors, six of whom are independent.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.