Strong Performance From Photronics (PLAB) in Morning Trading

Shares of Small-cap technology company Photronics moved 2.8% this morning, and are now trading at $18.88 per share. On the other hand, the average analyst target price for the stock is $23.0.

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally.

Potential Photronics Investors Should Analyze the Following:

  • Photronics has moved -8.5% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 1.05. A number between 0 and 1 could mean that the market is undervaluing Photronics's estimated growth potential

  • Its Price to Book (P/B) ratio is 1.25

Understanding Photronics's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-10-31 824,549 82,347 25.69 80.28
2021-10-31 663,761 72,490 14.25 35.84
2020-10-31 609,691 70,726 10.49 10.77
2019-10-31 550,660 68,720 9.47 n/a

Over the last 4 years, Photronics's operating margins have averaged only 15.0%, with a high coefficient of variability of 49.6%. On the other hand, we note that the firm's margins are growing at a 28.3% compounded average yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.