NASDAQ:PLAB is an undervalued gem with solid fundamentals.

Our stock screener has singled out PHOTRONICS INC (NASDAQ:PLAB) as a stellar value proposition. NASDAQ:PLAB not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NASDAQ:PLAB's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:PLAB was assigned a score of 8 for valuation:

• PLAB is valuated reasonably with a Price/Earnings ratio of 10.32.
• 95.41% of the companies in the same industry are more expensive than PLAB, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.44. PLAB is valued rather cheaply when compared to this.
• PLAB is valuated reasonably with a Price/Forward Earnings ratio of 9.40.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of PLAB indicates a rather cheap valuation: PLAB is cheaper than 94.50% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of PLAB to the average of the S&P500 Index (19.90), we can say PLAB is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, PLAB is valued cheaper than 98.17% of the companies in the same industry.
• 97.25% 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 8.36%, PLAB is in the better half of the industry, outperforming 72.48% of the companies in the same industry.
• With a decent Return On Equity value of 12.95%, PLAB is doing good in the industry, outperforming 70.64% of the companies in the same industry.
• PLAB has a better Return On Invested Capital (12.89%) than 84.40% of its industry peers.
• The last Return On Invested Capital (12.89%) for PLAB is above the 3 year average (11.47%), which is a sign of increasing profitability.
• PLAB has a better Profit Margin (15.15%) than 71.56% of its industry peers.
• PLAB's Profit Margin has improved in the last couple of years.
• PLAB has a Operating Margin of 27.53%. This is amongst the best in the industry. PLAB outperforms 85.32% of its industry peers.
• PLAB's Operating Margin has improved in the last couple of years.
• PLAB's Gross Margin has improved in the last couple of years.

Health Analysis for 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 8 out of 10:

• An Altman-Z score of 3.49 indicates that PLAB is not in any danger for bankruptcy at the moment.
• PLAB has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
• The Debt to FCF ratio of PLAB (0.13) is better than 84.40% of its industry peers.
• PLAB has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.00, PLAB is doing good in the industry, outperforming 67.89% of the companies in the same industry.
• A Current Ratio of 4.32 indicates that PLAB has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 4.32, PLAB is in the better half of the industry, outperforming 66.97% of the companies in the same industry.
• A Quick Ratio of 4.04 indicates that PLAB has no problem at all paying its short term obligations.
• PLAB has a Quick ratio of 4.04. This is in the better half of the industry: PLAB outperforms 73.39% of its industry peers.

Understanding NASDAQ:PLAB's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PLAB boasts a 4 out of 10:

• PLAB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.16% yearly.
• The Revenue has been growing by 10.75% on average over the past years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

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.