Photronics Stock To $49?

Photronics (PLAB) stock has jumped 45% during the past day, and is currently trading at $37.35. Our multi-factor assessment suggests that it may be time to buy more shares of PLAB stock. We have, overall, a positive view of the stock, and a price of $49 may not be out of reach. We believe there are a few things to fear in PLAB stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $2.2 Bil in market cap, Photronics provides photomask products and services to semiconductor and FPD manufacturers, designers, and foundries since 1969.

[1] Valuation Looks Low

This table highlights how PLAB is valued vs broader market. For more details see: PLAB Valuation Ratios

[2] Growth Is Very Weak

• Photronics has seen its top line grow at an average rate of 2.6% over the last 3 years
• Its revenues have fallen -1.8% from $872 Mil to $856 Mil in the last 12 months
• Also, its quarterly revenues declined -0.3% to $210 Mil in the most recent quarter from $211 Mil a year ago.

This table highlights how PLAB is growing vs broader market. For more details see: PLAB Revenue Comparison

[3] Profitability Appears Strong

• PLAB last 12 month operating income was $212 Mil representing operating margin of 24.7%
• With cash flow margin of 26.7%, it generated nearly $228 Mil in operating cash flow over this period
• For the same period, PLAB generated nearly $108 Mil in net income, suggesting net margin of about 12.7%

This table highlights how PLAB profitability vs broader market. For more details see: PLAB Operating Income Comparison

[4] Financial Stability Looks Very Strong

• PLAB Debt was $27000.0 at the end of the most recent quarter, while its current Market Cap is $2.2 Bil. This implies Debt-to-Equity Ratio of 0.0%
• PLAB Cash (including cash equivalents) makes up $576 Mil of $1.8 Bil in total Assets. This yields a Cash-to-Assets Ratio of 32.9%

[5] Downturn Resilience Is Weak

PLAB has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• PLAB stock fell 45.0% from a high of $25.78 on 12 August 2022 to $14.18 on 26 April 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 30 June 2023
• Since then, the stock increased to a high of $37.35 on 10 December 2025 $37.35

 
2020 Covid Pandemic

• PLAB stock fell 45.6% from a high of $15.76 on 1 January 2020 to $8.57 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 8 December 2021

 
2008 Global Financial Crisis

• PLAB stock fell 97.9% from a high of $16.87 on 12 January 2007 to $0.35 on 25 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 8 December 2021

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PLAB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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