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Photronics
(NASDAQ:PLAB)
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Rating:72Outperform
Price Target:
$30.00
▲(2.32% Upside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by strong financial quality—especially an exceptionally low-leverage balance sheet and solid profitability—plus supportive valuation (P/E ~10.8). These are partially offset by weak technicals (price below major moving averages and bearish MACD) and earnings-call commentary highlighting reduced near-term visibility and a widened Q4 guidance range despite strong cash generation.
Positive Factors
Conservative Balance Sheet
Minimal leverage reduces financial risk and interest burden while preserving flexibility to fund capacity, technology, and strategic initiatives. The balance sheet can support operations through industry cycles and gives Photronics room to invest without relying heavily on external financing.
Negative Factors
Margin Compression
The multi-year decline in gross margin suggests profitability has not been fully protected despite strong recent earnings. Sustained compression could reduce the cash available for investment and make results more sensitive to product mix, utilization, yields, and operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Minimal leverage reduces financial risk and interest burden while preserving flexibility to fund capacity, technology, and strategic initiatives. The balance sheet can support operations through industry cycles and gives Photronics room to invest without relying heavily on external financing.
Read all positive factors
Photronics (PLAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.83B
Dividend YieldN/A
Average Volume (3M)1.35M
Price to Earnings (P/E)10.8
Beta (1Y)1.20
Revenue Growth1.25%
EPS Growth60.46%
CountryUS
Employees1,908
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.85
Shares Outstanding58,997,166
10 Day Avg. Volume831,328
30 Day Avg. Volume1,348,126
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 Cap0.86
Enterprise Value/Revenue1.81
Enterprise Value/Gross Profit5.39
Enterprise Value/Ebitda4.65
Forecast
1Y Price Target
$44.00Price Target Upside50.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.86
Revenue Forecast (FY)$859.45M
Photronics Business Overview & Revenue Model
Company Description
Photronics, Inc., including its affiliated entities, operates as a global supplier focused on the production and distribution of photomask goods and associated services. The company's reach extends across the United States, Taiwan, Korea, Europe, ...
How the Company Makes Money
Photronics makes money primarily by producing and selling (and in some cases providing related services around) photomasks/reticles that customers use as critical tooling inputs to manufacture chips and displays.
Key revenue streams
1) Semiconduc...
Photronics Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q3-2026)
| Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Positive
The call presented a generally constructive operational and financial picture: revenue and IC growth, a record high-end IC mix, improved margins, strong operating cash flow and tangible progress on capacity and technology investments. However, ongoing industry headwinds (high fab utilization, memory tightness, geopolitical uncertainty), a decline in mainstream revenue, widened Q4 guidance and a reduced/flexibly timed CapEx plan introduce meaningful near-term uncertainty. Overall, bullish on strategic positioning and cash generation, but cautious about near-term visibility and timing of investments.Positive Updates
Total Revenue Growth
Total fiscal Q3 revenue of $216 million, up 3% year-over-year and up sequentially; results were above the high end of guidance.
Negative Updates
Mainstream Revenue Decline
Mainstream business declined to $86 million in the quarter due in part to node migration trends shifting volume to higher-end nodes.
Read all updates
Q3-2026 Updates
Positive
Negative
Total Revenue Growth
Total fiscal Q3 revenue of $216 million, up 3% year-over-year and up sequentially; results were above the high end of guidance.
Read all positive updates
Company Guidance
Management guided fiscal Q4 revenue of $207 million to $227 million, an operating margin of 19%–24% and non‑GAAP diluted EPS of $0.40–$0.56 per share; they updated fiscal 2026 CapEx to $255–$305 million (vs. prior $330M target) with fiscal YTD CapEx $130M and Q3 CapEx $37M and cautioned some spending may shift into fiscal 2027 (FY27 CapEx guidance due in December). They noted Q3 operating cash flow of $76M (35% of revenue), total cash and short‑term investments of $673M (up $35M, including $504M in 50.01%‑owned JVs), said they may supplement liquidity through borrowing, widened the Q4 revenue range due to limited visibility from high fab utilization, tight memory costs and geopolitical uncertainty, and reiterated capital allocation priorities: reinvest in the business, pursue strategic opportunities and return capital to shareholders.Photronics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 866.82M | 849.29M | 866.95M | 892.08M | 824.55M | 663.76M |
| Gross Profit | 291.73M | 299.83M | 315.95M | 336.16M | 294.21M | 167.04M |
| EBITDA | 338.42M | 299.44M | 330.55M | 351.21M | 321.22M | 194.09M |
| Net Income | 165.09M | 136.41M | 130.69M | 125.48M | 118.79M | 55.45M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 1.80B | 1.71B | 1.53B | 1.32B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 672.81M | 588.16M | 640.67M | 512.21M | 358.50M | 276.67M |
| Total Debt | 3.89M | 5.96M | 22.96M | 26.53M | 45.62M | 117.21M |
| Total Liabilities | 247.04M | 207.23M | 231.30M | 250.61M | 253.74M | 293.64M |
| Stockholders Equity | 1.28B | 1.17B | 1.12B | 975.01M | 831.53M | 823.69M |
Cash Flow | ||||||
| Free Cash Flow | 110.38M | 59.66M | 130.50M | 170.88M | 162.85M | 41.50M |
| Operating Cash Flow | 308.43M | 247.80M | 261.44M | 302.18M | 275.19M | 150.77M |
| Investing Cash Flow | -216.05M | -238.90M | -156.47M | -101.55M | -147.76M | -103.49M |
| Financing Cash Flow | -317.00K | -115.26M | -7.73M | -18.49M | -38.69M | -53.90M |
Photronics Technical Analysis
Neutral
29.32
Price Trends
30.21
Positive
32.25
Negative
35.86
Negative
Market Momentum
0.40
Negative
55.46
Neutral
71.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAB, the sentiment is Neutral. The current price of 29.32 is below the 20-day moving average (MA) of 29.66, below the 50-day MA of 30.21, and below the 200-day MA of 35.86, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 71.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.83B | 10.81 | 13.46% | ― | 1.25% | 60.46% | |
69 Neutral | $269.94B | 53.60 | 85.38% | 0.43% | 11.72% | 20.58% | |
69 Neutral | $5.31B | 33.49 | 9.48% | ― | 27.31% | 26.90% | |
66 Neutral | $7.56B | 193.19 | 5.82% | 1.62% | 7.94% | -72.56% | |
66 Neutral | $15.97B | 117.06 | 6.50% | ― | 8.08% | -33.87% | |
65 Neutral | $3.44B | 145.31 | 2.62% | ― | -2.52% | -64.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PLAB
Photronics
30.82
7.54
32.39%
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ACMR
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86.23%
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.