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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

PLAB

0.09%

US Semiconductor

0.7%

US Market


1 Year Return

23.1%

PLAB

35.7%

US Semiconductor

13.7%

US Market

Return vs Industry: PLAB underperformed the US Semiconductor industry which returned 35.7% over the past year.

Return vs Market: PLAB exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

PLABIndustryMarket
7 Day4.0%0.09%0.7%
30 Day9.3%9.2%4.7%
90 Day32.7%14.2%6.1%
1 Year23.1%23.1%38.4%35.7%16.2%13.7%
3 Year23.7%23.7%87.7%77.1%48.8%39.2%
5 Year41.7%41.7%139.7%115.5%62.5%44.5%

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 ($12.37) is trading below our estimate of fair value ($103.65)

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 (25.3x) compared to the Semiconductor industry average (29.9x).

PE vs Market: PLAB is poor value based on its PE Ratio (25.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: PLAB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PLAB is good value based on its PB Ratio (1.1x) compared to the US Semiconductor industry average (2.9x).


Next Steps

Future Growth

How is Photronics forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLAB's forecast earnings growth (37.9% per year) is above the savings rate (2.7%).

Earnings vs Market: PLAB's earnings (37.9% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: PLAB's revenue (11.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PLAB's revenue (11.5% 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?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLAB has high quality earnings.

Growing Profit Margin: PLAB's current net profit margins (6%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: PLAB's earnings have declined by -1.4% 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 (-6.5%) over the past year, making it difficult to compare to the Semiconductor industry average (-11.6%).


Return on Equity

High ROE: PLAB's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Photronics's financial position?


Financial Position Analysis

Short Term Liabilities: PLAB's short term assets ($420.5M) exceeds its short term liabilities ($159.3M)

Long Term Liabilities: PLAB's short term assets ($420.5M) exceeds its long term liabilities (54.6M)


Debt to Equity History and Analysis

Debt Level: PLAB's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: PLAB's debt to equity ratio has reduced from 23.2% to 5.4% over the past 5 years.

Debt Coverage: PLAB's debt is well covered by operating cash flow (138%).

Interest Coverage: PLAB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PLAB has a high level of physical assets or inventory.

Debt Coverage by Assets: PLAB's 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.3yrs

Average management tenure


CEO

Peter Kirlin (58yo)

4.5yrs

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

Compensation vs Market: Peter's total compensation ($USD1.55M) is below average for companies of similar size in the US market ($USD2.62M).

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


Management Age and Tenure

7.3yrs

Average Tenure

62yo

Average Age

Experienced Management: PLAB's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

70yo

Average Age

Experienced Board: PLAB's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: PLAB 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

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


Management Team

  • John Jordan (73yo)

    Senior VP & CFO

    • Tenure: 2.2yrs
    • Compensation: US$500.93k
  • Constantine Macricostas (83yo)

    Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: US$617.84k
  • Peter Kirlin (58yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$1.55m
  • Christopher Progler (55yo)

    VP of Strategic Planning & CTO

    • Tenure: 15.7yrs
    • Compensation: US$674.37k
  • Richelle Burr (55yo)

    VP, General Counsel & Secretary

    • Tenure: 9.8yrs
    • Compensation: US$556.79k
  • R. Dewar

    Director of Investor Relations

    • Tenure: 0yrs
  • Pete Broadbent

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

    • Tenure: 4.8yrs
  • Frank Lee (66yo)

    President of PDMC

    • Tenure: 13.8yrs
    • Compensation: US$957.90k

Board Members

  • Constantine Macricostas (83yo)

    Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: US$617.84k
  • Peter Kirlin (58yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$1.55m
  • Mitch Tyson (64yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$194.20k
  • Walter Fiederowicz (72yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 32.8yrs
    • Compensation: US$219.20k
  • George Macricostas (49yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$184.20k
  • LC Hsia (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$184.20k
  • Mary Paladino

    Independent Director

    • Tenure: 0.08yrs

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$831.225m
  • 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 Analysis2019/11/17 23:43
End of Day Share Price2019/11/15 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.