Photronics, Inc.

Rank #404Hypergrowth

PLAB · Nasdaq · Technology

Photronics, Inc. (PLAB) — Rank #404 by gross profitability (GP/assets 0.16) · ROE 11.0% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000810136 · all metrics point-in-time as of the filing date.

About

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.

It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company also provides electrical and optical components. It sells its products to semiconductor and FPD designers, manufacturers, and foundries through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc.

was incorporated in 1969 and is based in Brookfield, Connecticut.

Industry: Semiconductor Equipment & Materials
Sector: Technology
State: CT
Filer Category: Large accelerated filer
Fiscal Year End: October 31
Website: photronics.com

Price History

PLAB+99.2% · +14.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$1.60B

P/E (annual)

11.9

P/S (annual)

1.9

P/B

1.3

P/OCF (annual)

6.4

Shareholder Yield

13.5%

Employees

1,908

Industry

Semiconductor Equipment & Materials

Exchange

Nasdaq

Signal Flags

4 green

Revenue growth acceleratingGrowth rate increasing year over year

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass

GP / assets

0.16

Return on equity

11.0%

Gross margin trend

PASS

Safety

1/1 pass

Balance-sheet safety

PASS

Debt / equity

0.14

Current ratio

5.05×

Net cash

$637.67M

Cash Flow

2/3 pass

Positive FCF

PASS

Cash-backed earnings

WARN

Accruals healthy

PASS

SBC / revenue

1.6%

Growth

2/2 pass

Revenue growth

88.4%

Piotroski F-Score

N/A

Share dilution

-13.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

11.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -13.5% — per-share value needs a total required return of -1.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 27.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

7.3%

r = 10% (base)

11.9%

r = 12%

15.8%

Net debt / market cap: -39.3%

Base FCF: $59.7M3Y mean FCF: $38M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

8.5xCheap

8.5xmed 19.3x48.3x

P / S

Price / revenue per share

1.2xCheap

1.2xmed 1.4x2.0x

P / B

Price / book value per share

1.2xFair

0.9xmed 1.0x1.4x

P / GP

Price / gross profit per share

3.4xCheap

3.4xmed 5.9x9.2x

P / FCF

Price / free cash flow per share

6.2xCheap

6.2xmed 14.5x130.7x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin35.7% now vs 21.9%–35.7% 10yr range

2.2σ above average

Operating margin25.7% now vs 9.5%–25.7% 10yr range

2.2σ above average

Net margin14.4% now vs 5.4%–14.4% 10yr range

2.1σ above average

Revenue growth83.0% now vs 18.8%–83.0% 10yr range

2.0σ above average

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.16

Primary signal (Novy-Marx).

16th of 17 SIC 3674 peers

Return on equity

11.0%

Gross margin

35.3%

17th of 17 SIC 3674 peers

Revenue growth (YoY)

88.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2018	2020	2021	2022
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

1.0%

Revenue CAGR (5Y)

6.9%

Earnings CAGR (3Y)

4.7%

FCF CAGR (3Y)

-28.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.14

1st of 16 SIC 3674 peers (best = lowest)

Current ratio

5.05×

5th of 17 SIC 3674 peers

Quick ratio

4.42×

Net cash

$637.67M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$59.66M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.56

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

2016-2018

2020-2022

20162022

Op. Leverage

Hypergrowth

View full financial statements →