NASDAQ:PLAB stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Apr 18, 2024

Our stock screening tool has identified PHOTRONICS INC (NASDAQ:PLAB) as an undervalued gem with strong fundamentals. NASDAQ:PLAB boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

How do we evaluate the Valuation for NASDAQ:PLAB?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PLAB scores a 8 out of 10:

With a Price/Earnings ratio of 11.89, the valuation of PLAB can be described as very reasonable.
Based on the Price/Earnings ratio, PLAB is valued cheaply inside the industry as 94.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.83, PLAB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.82, which indicates a very decent valuation of PLAB.
Based on the Price/Forward Earnings ratio, PLAB is valued cheaply inside the industry as 95.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, PLAB is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLAB indicates a rather cheap valuation: PLAB is cheaper than 98.11% of the companies listed in the same industry.
95.28% of the companies in the same industry are more expensive than PLAB, based on the Price/Free Cash Flow ratio.
PLAB has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:PLAB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PLAB has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 8.70%, PLAB is in the better half of the industry, outperforming 70.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.46%, PLAB is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
PLAB has a better Return On Invested Capital (13.56%) than 80.19% of its industry peers.
The 3 year average ROIC (11.47%) for PLAB is below the current ROIC(13.56%), indicating increased profibility in the last year.
PLAB has a Profit Margin of 15.34%. This is in the better half of the industry: PLAB outperforms 69.81% of its industry peers.
PLAB's Profit Margin has improved in the last couple of years.
PLAB has a better Operating Margin (28.37%) than 85.85% of its industry peers.
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.

How We Gauge Health for NASDAQ:PLAB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:PLAB has earned a 8 out of 10:

PLAB has an Altman-Z score of 3.89. This indicates that PLAB is financially healthy and has little risk of bankruptcy at the moment.
The Debt to FCF ratio of PLAB is 0.14, which is an excellent value as it means it would take PLAB, only 0.14 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.14, PLAB belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that PLAB is not too dependend on debt financing.
PLAB has a Debt to Equity ratio of 0.00. This is in the better half of the industry: PLAB outperforms 71.70% of its industry peers.
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.
With a decent Current ratio value of 4.36, PLAB is doing good in the industry, outperforming 70.75% of the companies in the same industry.
PLAB has a Quick Ratio of 4.09. This indicates that PLAB is financially healthy and has no problem in meeting its short term obligations.
PLAB's Quick ratio of 4.09 is fine compared to the rest of the industry. PLAB outperforms 75.47% of its industry peers.

How do we evaluate the Growth for NASDAQ:PLAB?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PLAB has received a 5 out of 10:

PLAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.86%, which is quite impressive.
The Earnings Per Share has been growing by 28.16% on average over the past years. This is a very strong growth
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
PLAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.61% yearly.

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

Our latest full fundamental report of PLAB contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.