NasdaqGS:PLAB

Stock Analysis Report

Executive Summary

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Photronics has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Photronics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

NasdaqGS:PLAB

2.0%

US Semiconductor

1.2%

US Market


1 Year Return

12.4%

NasdaqGS:PLAB

10.9%

US Semiconductor

1.7%

US Market

PLAB outperformed the Semiconductor industry which returned 10.9% over the past year.

PLAB outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

PLABIndustryMarket
7 Day3.9%2.0%1.2%
30 Day29.6%10.8%4.9%
90 Day35.9%17.2%3.7%
1 Year12.4%12.4%13.0%10.9%3.9%1.7%
3 Year14.4%14.4%83.8%73.0%47.2%37.7%
5 Year33.6%33.6%122.5%100.0%60.0%42.4%

Price Volatility Vs. Market

How volatile is Photronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Photronics undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Photronics's share price is below the future cash flow value, and at a moderate discount (> 20%).

Photronics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Photronics is good value based on earnings compared to the US Semiconductor industry average.

Photronics is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Photronics is good value based on expected growth next year.


Price Based on Value of Assets

Photronics is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Photronics expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Photronics's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Photronics's earnings are expected to grow significantly at over 20% yearly.

Photronics's revenue growth is expected to exceed the United States of America market average.

Photronics's earnings growth is expected to exceed the United States of America market average.

Photronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Photronics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Photronics performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Photronics's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Photronics's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Photronics's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Photronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Photronics used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Photronics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Photronics's financial position?


Financial Position Analysis

Photronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Photronics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Photronics's level of debt (5.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (23.2% vs 5.4% today).

Debt is well covered by operating cash flow (138%, greater than 20% of total debt).

Photronics earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8.6x debt.


Next Steps

Dividend

What is Photronics's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Photronics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Photronics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Photronics has not reported any payouts.

Unable to verify if Photronics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Photronics has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Photronics's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Peter Kirlin (58yo)

4.3yrs

Tenure

US$1,546,173

Compensation

Dr. Peter S. Kirlin Ph.D. has been the Chief Executive Officer of Photronics, Inc. since May 4, 2015 and served as its Principal Financial Officer since August 25, 2017 until September 5, 2017. Dr. Kirlin  ...


CEO Compensation Analysis

Peter's remuneration is lower than average for companies of similar size in United States of America.

Peter's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

7.2yrs

Average Tenure

62yo

Average Age

The average tenure for the Photronics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.7yrs

Average Tenure

70yo

Average Age

The average tenure for the Photronics board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Photronics individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$59,12504 Sep 19
Christopher Progler
EntityIndividual
Role
Chief Technology Officer
VP of Strategic Planning & CTO
Shares5,500
Max PriceUS$10.75
SellUS$28,08029 Aug 19
KangJyh Lee
EntityIndividual
Role
Unit President
President of PDMC
Shares3,000
Max PriceUS$9.36
BuyUS$9,25019 Mar 19
John Jordan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,000
Max PriceUS$9.25
SellUS$50,70006 Mar 19
KangJyh Lee
EntityIndividual
Role
Unit President
President of PDMC
Shares5,000
Max PriceUS$10.14
SellUS$216,72016 Jan 19
Walter Fiederowicz
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares21,000
Max PriceUS$10.32
SellUS$21,22714 Jan 19
Richelle Burr
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,043
Max PriceUS$10.39
SellUS$221,27011 Jan 19
George Macricostas
EntityIndividual
Role
Member of the Board of Directors
Director
Shares22,000
Max PriceUS$10.10
SellUS$147,15005 Jan 19
George Macricostas
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$9.85
SellUS$89,25505 Jan 19
Christopher Progler
EntityIndividual
Role
Chief Technology Officer
VP of Strategic Planning & CTO
Shares9,475
Max PriceUS$9.42
SellUS$28,80031 Dec 18
George Macricostas
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$9.60

Ownership Breakdown


Management Team

  • John Jordan (73yo)

    Senior VP & CFO

    • Tenure: 2yrs
    • Compensation: US$500.93k
  • Constantine Macricostas (83yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$617.84k
  • Peter Kirlin (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$1.55m
  • Christopher Progler (55yo)

    VP of Strategic Planning & CTO

    • Tenure: 15.5yrs
    • Compensation: US$674.37k
  • Richelle Burr (55yo)

    VP, General Counsel & Secretary

    • Tenure: 9.7yrs
    • Compensation: US$556.79k
  • R. Dewar

    Director of Investor Relations

    • Tenure: 0yrs
  • Pete Broadbent

    Vice President of U.S. & Europe - Mainstream Sales & Operations

    • Tenure: 4.7yrs
  • Frank Lee (66yo)

    President of PDMC

    • Tenure: 13.7yrs
    • Compensation: US$957.90k

Board Members

  • Constantine Macricostas (83yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$617.84k
  • Peter Kirlin (58yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$1.55m
  • Mitch Tyson (64yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$194.20k
  • Walter Fiederowicz (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$219.20k
  • Joseph Fiorita (74yo)

    Director

    • Tenure: 32.7yrs
    • Compensation: US$219.20k
  • George Macricostas (49yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$184.20k
  • LC Hsia (70yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$184.20k

Company Information

Photronics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Photronics, Inc.
  • Ticker: PLAB
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$747.901m
  • Shares outstanding: 67.20m
  • Website: https://www.photronics.com

Number of Employees


Location

  • Photronics, Inc.
  • 15 Secor Road
  • Brookfield
  • Connecticut
  • 6804
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLABNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1987
PQ2DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1987

Biography

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally. The company offers photomasks, which are high precision ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 23:39
End of Day Share Price2019/09/13 00:00
Earnings2019/07/28
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.