NASDAQ:PLAB, an undervalued stock with good fundamentals.

Last update: Jan 15, 2025

Discover PHOTRONICS INC (NASDAQ:PLAB), an undervalued stock highlighted by our stock screener. NASDAQ:PLAB showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of NASDAQ:PLAB

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:

With a Price/Earnings ratio of 11.89, the valuation of PLAB can be described as very reasonable.
93.52% of the companies in the same industry are more expensive than PLAB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PLAB to the average of the S&P500 Index (27.28), we can say PLAB is valued rather cheaply.
A Price/Forward Earnings ratio of 10.99 indicates a reasonable valuation of PLAB.
PLAB's Price/Forward Earnings ratio is rather cheap when compared to the industry. PLAB is cheaper than 93.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, PLAB is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, PLAB is valued cheaper than 97.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PLAB is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
PLAB has a very decent profitability rating, which may justify a higher PE ratio.

Assessing 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:

The Return On Assets of PLAB (7.63%) is better than 71.30% of its industry peers.
PLAB's Return On Equity of 11.66% is fine compared to the rest of the industry. PLAB outperforms 71.30% of its industry peers.
PLAB has a better Return On Invested Capital (10.75%) than 79.63% of its industry peers.
PLAB has a better Profit Margin (15.07%) than 71.30% of its industry peers.
PLAB's Profit Margin has improved in the last couple of years.
PLAB has a Operating Margin of 25.55%. This is amongst the best in the industry. PLAB outperforms 85.19% 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.

How We Gauge Health for NASDAQ:PLAB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PLAB was assigned a score of 8 for health:

An Altman-Z score of 3.54 indicates that PLAB is not in any danger for bankruptcy at the moment.
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.
The Debt to FCF ratio of PLAB (0.14) is better than 86.11% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PLAB is not too dependend on debt financing.
PLAB has a better Debt to Equity ratio (0.00) than 69.44% of its industry peers.
PLAB has a Current Ratio of 5.07. This indicates that PLAB is financially healthy and has no problem in meeting its short term obligations.
PLAB has a Current ratio of 5.07. This is in the better half of the industry: PLAB outperforms 77.78% of its industry peers.
PLAB has a Quick Ratio of 4.76. This indicates that PLAB is financially healthy and has no problem in meeting its short term obligations.
PLAB's Quick ratio of 4.76 is amongst the best of the industry. PLAB outperforms 83.33% of its industry peers.

ChartMill's Evaluation of Growth

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 4 out of 10:

Measured over the past years, PLAB shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.90% on average per year.
Measured over the past years, PLAB shows a quite strong growth in Revenue. The Revenue has been growing by 9.50% on average per year.
Based on estimates for the next years, PLAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.

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

Check the latest full fundamental report of PLAB for a complete fundamental analysis.

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.