NasdaqGS:PLAB

Stock Analysis Report

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Executive Summary

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. More Details

Rewards

Trading at 73.3% below our estimate of its fair value

Earnings are forecast to grow 31.24% per year

Risk Analysis

No risks detected for PLAB from our risk checks.


Snowflake Analysis

Flawless balance sheet and undervalued.


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

Stable Share Price: PLAB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PLAB's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-12.6%

PLAB

-6.9%

US Semiconductor

-3.4%

US Market


1 Year Return

-13.5%

PLAB

57.1%

US Semiconductor

29.4%

US Market

Return vs Industry: PLAB underperformed the US Semiconductor industry which returned 57.1% over the past year.

Return vs Market: PLAB underperformed the US Market which returned 29.4% over the past year.


Shareholder returns

PLABIndustryMarket
7 Day-12.6%-6.9%-3.4%
30 Day0.2%-1.3%0.6%
90 Day-4.6%7.3%6.3%
1 Year-13.5%-13.5%59.7%57.1%32.2%29.4%
3 Year39.3%39.3%98.0%87.9%51.3%41.7%
5 Year17.7%17.7%323.4%282.5%119.6%95.2%

Long-Term 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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLAB ($11.7) is trading below our estimate of fair value ($43.87)

Significantly Below Fair Value: PLAB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PLAB is good value based on its PE Ratio (23.8x) compared to the US Semiconductor industry average (38.1x).

PE vs Market: PLAB is poor value based on its PE Ratio (23.8x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: PLAB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PLAB is good value based on its PB Ratio (0.9x) compared to the US Semiconductor industry average (4.7x).


Next Steps

Future Growth

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

31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLAB's forecast earnings growth (31.2% per year) is above the savings rate (2%).

Earnings vs Market: PLAB's earnings (31.2% per year) are forecast to grow faster than the US market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PLAB's revenue (7.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PLAB's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PLAB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Photronics performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLAB has high quality earnings.

Growing Profit Margin: PLAB's current net profit margins (5.2%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: PLAB's earnings have declined by 7.6% per year over the past 5 years.

Accelerating Growth: PLAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PLAB had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Semiconductor industry average (18.2%).


Return on Equity

High ROE: PLAB's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Photronics's financial position?


Financial Position Analysis

Short Term Liabilities: PLAB's short term assets ($506.1M) exceed its short term liabilities ($145.5M).

Long Term Liabilities: PLAB's short term assets ($506.1M) exceed its long term liabilities ($108.0M).


Debt to Equity History and Analysis

Debt Level: PLAB's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: PLAB's debt to equity ratio has reduced from 16.5% to 9.7% over the past 5 years.

Debt Coverage: PLAB's debt is well covered by operating cash flow (146.7%).

Interest Coverage: PLAB's interest payments on its debt are well covered by EBIT (32.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PLAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PLAB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PLAB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLAB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PLAB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Peter Kirlin (59 yo)

5.83yrs

Tenure

US$2,103,896

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

Compensation vs Market: Peter's total compensation ($USD2.10M) is about average for companies of similar size in the US market ($USD2.20M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Constantine Macricostas
Chairman of the Board5.83yrsUS$250.80k0.83%
$ 6.1m
Peter Kirlin
CEO & Director5.83yrsUS$2.10m0.63%
$ 4.7m
John Jordan
Executive VP & CFO3.5yrsUS$995.36k0.22%
$ 1.6m
Christopher Progler
Executive VP of Strategic Planning & CTO17yrsUS$1.04m0.23%
$ 1.7m
Richelle Burr
Executive VP1.17yrsUS$994.60k0.19%
$ 1.4m
KangJyh Lee
President of Asia IC - Photomaskno dataUS$1.07m0.30%
$ 2.2m
Eric Rivera
VP, Corporate Controller1.25yrsno datano data
R. Dewar
Vice President of Investor Relationsno datano datano data

3.5yrs

Average Tenure

63yo

Average Age

Experienced Management: PLAB's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Constantine Macricostas
Chairman of the Board5.83yrsUS$250.80k0.83%
$ 6.1m
Peter Kirlin
CEO & Director5.83yrsUS$2.10m0.63%
$ 4.7m
Mitchell Tyson
Independent Director17.17yrsUS$275.80k0.16%
$ 1.2m
Walter Fiederowicz
Lead Independent Directorno dataUS$305.80k0.043%
$ 315.9k
George Macricostas
Director19.17yrsUS$255.80k0.088%
$ 655.2k
Liang-Choo Hsia
Independent Director9.17yrsUS$75.20k0%
$ 0
Daniel Liao
Independent Director0.50yrUS$76.38k0.028%
$ 210.6k
Mary Paladino
Independent Director1.42yrsUS$278.30k0.043%
$ 315.9k

5.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PLAB's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$741.971m
  • Shares outstanding: 63.42m
  • 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, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 23:53
End of Day Share Price2021/03/03 00:00
Earnings2021/01/31
Annual Earnings2020/10/31


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.