NASDAQ:PLAB is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Mar 19, 2024

PHOTRONICS INC (NASDAQ:PLAB) has caught the attention of our stock screener as a great value stock. NASDAQ:PLAB excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Evaluating Valuation: 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 7 out of 10:

Based on the Price/Earnings ratio, PLAB is valued cheaply inside the industry as 93.40% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PLAB to the average of the S&P500 Index (25.68), we can say PLAB is valued rather cheaply.
A Price/Forward Earnings ratio of 11.40 indicates a reasonable valuation of PLAB.
PLAB's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLAB is cheaper than 94.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PLAB to the average of the S&P500 Index (22.14), we can say PLAB is valued slightly cheaper.
PLAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PLAB is cheaper than 96.23% of the companies in the same industry.
PLAB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PLAB is cheaper than 95.28% of the companies in the same industry.
The decent profitability rating of PLAB may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:PLAB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PLAB, the assigned 7 is a significant indicator of profitability:

PLAB's Return On Assets of 8.70% is fine compared to the rest of the industry. PLAB outperforms 69.81% of its industry peers.
With a decent Return On Equity value of 13.46%, PLAB is doing good in the industry, outperforming 69.81% of the companies in the same industry.
PLAB's Return On Invested Capital of 13.56% is fine compared to the rest of the industry. PLAB outperforms 79.25% of its industry peers.
The last Return On Invested Capital (13.56%) for PLAB is above the 3 year average (11.47%), which is a sign of increasing profitability.
The Profit Margin of PLAB (15.34%) is better than 69.81% of its industry peers.
PLAB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.37%, PLAB belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
PLAB's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of PLAB has grown nicely.

Health Assessment of NASDAQ:PLAB

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PLAB has achieved a 7 out of 10:

PLAB has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
PLAB has a Debt to FCF ratio of 0.14. This is amongst the best in the industry. PLAB outperforms 83.96% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PLAB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, PLAB is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
PLAB has a Current Ratio of 4.36. This indicates that PLAB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PLAB (4.36) is better than 69.81% of its industry peers.
A Quick Ratio of 4.09 indicates that PLAB has no problem at all paying its short term obligations.
The Quick ratio of PLAB (4.09) is better than 74.53% of its industry peers.

A Closer Look at Growth for NASDAQ:PLAB

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PLAB has achieved a 5 out of 10:

The Earnings Per Share has grown by an impressive 21.86% over the past year.
Measured over the past years, PLAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.16% on average per year.
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
Based on estimates for the next years, PLAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.61% on average per year.

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

For an up to date full fundamental analysis you can check the fundamental report of PLAB

Disclaimer

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.