NASDAQ:PLAB appears to be flying under the radar despite its strong fundamentals.

Discover PHOTRONICS INC (NASDAQ:PLAB), an undervalued stock highlighted by our stock screener. NASDAQ:PLAB showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: NASDAQ:PLAB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PLAB scores a 8 out of 10:

• Based on the Price/Earnings ratio, PLAB is valued cheaper than 92.38% of the companies in the same industry.
• When comparing the Price/Earnings ratio of PLAB to the average of the S&P500 Index (26.00), we can say PLAB is valued slightly cheaper.
• Based on the Price/Forward Earnings ratio of 11.46, the valuation of PLAB can be described as reasonable.
• Based on the Price/Forward Earnings ratio, PLAB is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
• PLAB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
• PLAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PLAB is cheaper than 96.19% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, PLAB is valued cheaper than 96.19% of the companies in the same industry.
• PLAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PLAB has a very decent profitability rating, which may justify a higher PE ratio.
• PLAB's earnings are expected to grow with 14.08% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PLAB, the assigned 7 is a significant indicator of profitability:

• PLAB's Return On Assets of 8.22% is fine compared to the rest of the industry. PLAB outperforms 65.71% of its industry peers.
• PLAB's Return On Equity of 12.87% is fine compared to the rest of the industry. PLAB outperforms 66.67% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.05%, PLAB is in the better half of the industry, outperforming 79.05% of the companies in the same industry.
• The last Return On Invested Capital (14.05%) for PLAB is above the 3 year average (11.47%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 14.07%, PLAB is in the better half of the industry, outperforming 67.62% of the companies in the same industry.
• PLAB's Profit Margin has improved in the last couple of years.
• PLAB has a Operating Margin of 28.37%. This is amongst the best in the industry. PLAB outperforms 84.76% of its industry peers.
• PLAB's Operating Margin has improved in the last couple of years.
• PLAB's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NASDAQ:PLAB?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PLAB has received a 8 out of 10:

• An Altman-Z score of 3.95 indicates that PLAB is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of PLAB is 0.14, which is an excellent value as it means it would take PLAB, only 0.14 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.14, PLAB belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• PLAB has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of PLAB (0.02) is better than 69.52% of its industry peers.
• A Current Ratio of 4.24 indicates that PLAB has no problem at all paying its short term obligations.
• The Current ratio of PLAB (4.24) is better than 67.62% of its industry peers.
• A Quick Ratio of 3.97 indicates that PLAB has no problem at all paying its short term obligations.
• The Quick ratio of PLAB (3.97) is better than 71.43% of its industry peers.

Growth Assessment of NASDAQ:PLAB

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PLAB boasts a 5 out of 10:

• Measured over the past years, PLAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.16% on average per year.
• Looking at the last year, PLAB shows a quite strong growth in Revenue. The Revenue has grown by 8.20% in the last year.
• PLAB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.75% yearly.
• PLAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.08% yearly.

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Check the latest full fundamental report of PLAB for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.