Photronics Inc (PLAB) stock analysis

P/E below its 5-year median

Photronics's P/E of 9.7 is below its own 5-year median of 11.5.

P/E below the industry

Photronics's P/E of 9.7 is below the Electronic Components and Accessories median of 34.1.

EV/EBITDA above its 5-year median

Photronics's EV/EBITDA of 5.2 is above its 5-year median of 4.2.

P/B below the industry

Photronics's price-to-book of 1.27 is below the Electronic Components and Accessories median of 3.21.

Trading below fair value

The share price of $27.55 is below our fair value estimate of $58.44.

Margin of safety over 20%

The price is 52.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 52.2% over the last twelve months, against a 5-year average of 32.2% a year.

Growing slower than the industry

Revenue grew 1.2% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

Guidance issued

The latest outlook (fourth quarter of fiscal 2026 Revenue, Aug 26, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 33.7% over the last twelve months, against 35.8% a year earlier.

Return on equity under 15%

Return on equity was 13.7% over the last twelve months and averaged 11.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 29.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Photronics's return on equity of 13.7% is above the Electronic Components and Accessories median of 5.0%.

Earnings grew over 5 years

Net income grew 32.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.0% over the last twelve months, against a 5-year average of 13.6%.

Net margin above the industry

Photronics's net margin of 19.0% is above the Electronic Components and Accessories median of 3.0%.

Low debt

Debt is 0.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 8.5% five years ago to 0.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 7923% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 4.94 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.79; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Photronics has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.