Don't overlook PHOTRONICS INC (NASDAQ:PLAB)—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Feb 27, 2025

Consider PHOTRONICS INC (NASDAQ:PLAB) as a top value stock, identified by our stock screening tool. NASDAQ:PLAB shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NASDAQ:PLAB

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:PLAB has achieved a 8 out of 10:

With a Price/Earnings ratio of 10.15, the valuation of PLAB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PLAB indicates a rather cheap valuation: PLAB is cheaper than 96.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.36, PLAB is valued rather cheaply.
A Price/Forward Earnings ratio of 9.00 indicates a reasonable valuation of PLAB.
Based on the Price/Forward Earnings ratio, PLAB is valued cheaper than 98.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PLAB to the average of the S&P500 Index (22.65), we can say PLAB is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLAB indicates a rather cheap valuation: PLAB is cheaper than 98.13% of the companies listed in the same industry.
PLAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PLAB is cheaper than 99.07% of the companies in the same industry.
The decent profitability rating of PLAB may justify a higher PE ratio.

Profitability Examination for NASDAQ:PLAB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PLAB scores a 7 out of 10:

PLAB's Return On Assets of 7.63% is fine compared to the rest of the industry. PLAB outperforms 72.90% of its industry peers.
PLAB has a better Return On Equity (11.66%) than 70.09% of its industry peers.
PLAB has a better Return On Invested Capital (10.75%) than 79.44% of its industry peers.
PLAB has a better Profit Margin (15.07%) than 72.90% of its industry peers.
In the last couple of years the Profit Margin of PLAB has grown nicely.
PLAB's Operating Margin of 25.55% is amongst the best of the industry. PLAB outperforms 85.05% of its industry peers.
In the last couple of years the Operating Margin of PLAB has grown nicely.
PLAB's Gross Margin has improved in the last couple of years.

Health Analysis 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:

PLAB has an Altman-Z score of 3.38. This indicates that PLAB is financially healthy and has little risk of 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 85.98% of the companies in the same industry.
PLAB has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.00, PLAB is doing good in the industry, outperforming 70.09% of the companies in the same industry.
A Current Ratio of 5.07 indicates that PLAB has no problem at all paying its short term obligations.
PLAB has a Current ratio of 5.07. This is in the better half of the industry: PLAB outperforms 78.50% of its industry peers.
PLAB has a Quick Ratio of 4.76. This indicates that PLAB is financially healthy and has no problem in meeting its short term obligations.
PLAB has a Quick ratio of 4.76. This is amongst the best in the industry. PLAB outperforms 83.18% of its industry peers.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PLAB has earned a 4 for growth:

Measured over the past years, PLAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
PLAB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.50% yearly.
The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.