Photronics Inc (NASDAQ: PLAB)

Sector: Technology Industry: Semiconductor Equipment & Materials CIK: 0000810136
Market Cap 2.04 Bn
P/B 1.74
P/E 14.94
P/S 2.40
ROIC (Qtr) 18.92
Div Yield % 0.00
Rev 1y % (Qtr) -3.08
Total Debt (Qtr) 24,000.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 247.80M provides robust 10324.92x coverage of total debt 24000, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 492.26M provide 44750.55x coverage of short-term debt 11000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 247.80M provides exceptional 4505.42x coverage of interest expenses 55000, showing strong debt service capability.
  • Strong tangible asset base of 1.80B provides 75188.92x coverage of total debt 24000, indicating robust asset backing and low credit risk.
  • Operating cash flow of 247.80M provides strong 18.51x coverage of stock compensation 13.39M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 247.80M barely covers its investment activities of (238.90M), with a coverage ratio of -1.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (238.90M) provide weak support for R&D spending of 15.80M, which is -15.12x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 195.92M relative to inventory of 61.77M (3.17 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 59.66M provides weak coverage of capital expenditures of 188.14M, with a 0.32 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 168.01M show weak coverage of depreciation charges of 77.61M, with a 2.16 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductor Equipment & Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ASML Asml Holding Nv 545.55 Bn 81.60 25.80 3.18 Bn
2 LRCX Lam Research Corp 270.12 Bn 366.11 84.92 4.48 Bn
3 AMAT Applied Materials Inc /De 260.74 Bn 38.58 9.28 6.56 Bn
4 KLAC Kla Corp 207.40 Bn 64.64 19.12 5.89 Bn
5 TER Teradyne, Inc 47.70 Bn 421.67 28.58 0.27 Bn
6 ENTG Entegris Inc 15.99 Bn 199.19 14.79 3.91 Bn
7 NVMI Nova Ltd. 12.80 Bn 52.23 15.01 0.88 Bn
8 AMKR Amkor Technology, Inc. 11.99 Bn 21.67 2.07 1.89 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 3.68
EV to Cash from Ops. EV/CFO 6.29 27.99
EV to Debt EV to Debt 64,951.56 2,137.46
EV to EBIT EV/EBIT 9.28 47.14
EV to EBITDA EV/EBITDA 5.45 30.10
EV to Free Cash Flow [EV/FCF] EV/FCF 26.13 68.49
EV to Market Cap EV to Market Cap 0.76 0.93
EV to Revenue EV/Rev 1.84 55.25
Price to Book Value [P/B] P/B 1.74 11.74
Price to Earnings [P/E] P/E 14.94 58.42
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.93
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 667.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.62
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.52
Interest Coverage Int. cover (Qtr) 3,054.73 86.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -43.68 -57.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.75 21.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.23 -69.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.10 -68.67
EBIT Growth (1y) % EBIT 1y % (Qtr) -13.66 -68.41
EBT Growth (1y) % EBT 1y % (Qtr) -13.54 -76.59
EPS Growth (1y) % EPS 1y % (Qtr) 8.02 -164.09
FCF Growth (1y) % FCF 1y % (Qtr) -54.28 70.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.10 43.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.47 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 2.97 1.52
Current Ratio Curr Ratio (Qtr) 5.37 4.04
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.30
Interest Cover Ratio Int Coverage (Qtr) 3,054.73 86.73
Times Interest Earned Times Interest Earned (Qtr) 3,054.73 86.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.90 -1,802.55
EBIT Margin % EBIT Margin % (Qtr) 19.78 -1,926.38
EBT Margin % EBT Margin % (Qtr) 19.78 -1,932.94
Gross Margin % Gross Margin % (Qtr) 35.30 22.58
Net Profit Margin % Net Margin % (Qtr) 16.10 -2,101.05