Photronics (PLAB)
NASDAQ:PLAB
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Photronics
(NASDAQ:PLAB)
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Rating:70Outperform
Price Target:
$37.00
▼(-23.52% Downside)
Action:Reiterated
Date:05/29/26
The score is driven primarily by strong financial resilience (notably the very strong balance sheet and solid cash generation) and a reasonable valuation (P/E ~12.4). These positives are tempered by weak technicals (stock below major moving averages with negative MACD) and a mixed earnings outlook with limited visibility, IC softness, and elevated CapEx despite continued profitability and strategic long-term investments.
Positive Factors
Balance Sheet Strength
Photronics' near-zero leverage and meaningful equity growth provide durable financial flexibility. This reduces refinancing and solvency risk during cyclical semiconductor downturns, enables self-funding of strategic investments and M&A optionality, and preserves operational resilience over months.
Negative Factors
IC Revenue Dependence
With IC representing ~70% of sales and recent year-over-year IC weakness, revenue is highly sensitive to design cycles, foundry utilization and memory market swings. Prolonged softness in IC tape-outs or design delays could materially reduce revenue and undercut utilization-dependent margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Photronics' near-zero leverage and meaningful equity growth provide durable financial flexibility. This reduces refinancing and solvency risk during cyclical semiconductor downturns, enables self-funding of strategic investments and M&A optionality, and preserves operational resilience over months.
Read all positive factors
Photronics (PLAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.89B
Dividend YieldN/A
Average Volume (3M)1.56M
Price to Earnings (P/E)11.5
Beta (1Y)1.29
Revenue Growth0.52%
EPS Growth41.86%
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.73
Shares Outstanding58,966,393
10 Day Avg. Volume3,137,860
30 Day Avg. Volume1,559,074
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)1.21
Price to Sales (P/S)1.68
P/FCF Ratio23.88
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit4.81
Enterprise Value/Ebitda5.26
Forecast
1Y Price Target
$48.50Price Target Upside0.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.26
Revenue Forecast (FY)$886.23M
Photronics Business Overview & Revenue Model
Company Description
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 offers photomasks that are used in the ma...
How the Company Makes Money
Photronics makes money primarily by manufacturing and selling photomasks to semiconductor and display manufacturers. Its core revenue model is transaction-based: customers place orders for specific mask sets (often multiple masks per device layer)...
Photronics Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: solid profitability, strong display performance (+13% YoY), healthy operating cash flow (22% of revenue), a robust cash position, and strategic investments (U.S. and Korea expansions, new FPD tool) that position the company for long-term growth in high-end masks. Offsetting these positives were near-term headwinds in the core IC business (IC revenue down 5% YoY), delayed design releases driven by high fab utilization, memory supply/price pressures and geopolitical uncertainty, limited visibility (1–3 week backlog), and elevated CapEx that could weigh on near-term returns if weakness persists. Overall, the company appears strategically well-positioned for medium- to long-term growth but faces meaningful short-term demand and execution risks.Positive Updates
Total Revenue Stable Year-over-Year
Total fiscal Q2 revenue of $210 million was essentially flat year-over-year, demonstrating resilience despite near-term industry headwinds.
Negative Updates
IC Revenue Decline
IC revenue decreased 5% year-over-year to $148 million and represented 70% of total revenue, reflecting delayed design releases and weaker near-term demand in the core IC business.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Stable Year-over-Year
Total fiscal Q2 revenue of $210 million was essentially flat year-over-year, demonstrating resilience despite near-term industry headwinds.
Read all positive updates
Company Guidance
Management guided fiscal Q3 revenue of $207–$215 million, an operating margin of 18%–20% and non‑GAAP diluted EPS of $0.39–$0.45; this outlook follows fiscal Q2 results of $210M revenue (IC $148M, 70% of revenue, down 5% YoY; high‑end = 38% of IC; mainstream IC $91M; FPD $62M, +13% YoY), Q2 gross margin 31%, operating margin 20%, GAAP diluted EPS $0.54 (non‑GAAP ex‑FX $0.42), operating cash flow $47M (22% of revenue) and Q2 CapEx $46M, with company reiterating fiscal 2026 CapEx guidance of $330M, total cash & short‑term investments of $638M (including $477M in JVs at 50.01% ownership), a typical backlog of 1–3 weeks, and expectations for initial U.S. revenue late in FY2026 and initial Korea expansion revenue by end of FY2027 amid limited near‑term visibility.Photronics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 861.17M | 849.29M | 866.95M | 892.08M | 824.55M | 663.76M |
| Gross Profit | 290.85M | 299.83M | 315.95M | 336.16M | 294.21M | 167.04M |
| EBITDA | 266.19M | 286.01M | 330.55M | 351.21M | 321.22M | 194.09M |
| Net Income | 159.06M | 136.41M | 130.69M | 125.48M | 118.79M | 55.45M |
Balance Sheet | ||||||
| Total Assets | 1.93B | 1.80B | 1.71B | 1.53B | 1.32B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 637.67M | 588.16M | 640.67M | 512.21M | 358.50M | 276.67M |
| Total Debt | 3.86M | 5.96M | 22.96M | 26.53M | 45.62M | 117.21M |
| Total Liabilities | 237.37M | 207.23M | 231.30M | 250.61M | 253.74M | 293.64M |
| Stockholders Equity | 1.24B | 1.17B | 1.12B | 975.01M | 831.53M | 823.69M |
Cash Flow | ||||||
| Free Cash Flow | 96.25M | 59.66M | 130.50M | 170.88M | 162.85M | 41.50M |
| Operating Cash Flow | 282.16M | 247.80M | 261.44M | 302.18M | 275.19M | 150.77M |
| Investing Cash Flow | -275.94M | -238.90M | -156.47M | -101.55M | -147.76M | -103.49M |
| Financing Cash Flow | -20.61M | -115.26M | -7.73M | -18.49M | -38.69M | -53.90M |
Photronics Technical Analysis
Negative
48.38
Price Trends
45.82
Negative
40.96
Negative
33.18
Negative
Market Momentum
-4.12
Positive
29.61
Positive
4.33
Positive
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 48.38 is above the 20-day moving average (MA) of 45.67, above the 50-day MA of 45.82, and above the 200-day MA of 33.18, indicating a bearish trend. The MACD of -4.12 indicates Positive momentum. The RSI at 29.61 is Positive, neither overbought nor oversold. The STOCH value of 4.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLAB.
Photronics Risk Analysis
Photronics disclosed 1 risk factors in its most recent earnings report. Photronics reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.89B | 11.49 | 12.23% | ― | 0.52% | 41.86% | |
66 Neutral | $3.69B | 166.35 | 2.64% | ― | -7.71% | -66.03% | |
63 Neutral | $8.18B | -62.47 | -28.42% | ― | 40.89% | 42.62% | |
62 Neutral | $4.22B | 130.65 | 3.60% | 4.48% | -10.57% | -62.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.65B | -47.29 | -6.91% | ― | 23.10% | 35.49% | |
59 Neutral | $4.15B | -21.87 | -28.05% | ― | -3.24% | -786.94% |
* Technology Sector Average
PLAB
Photronics
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77.78%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.