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1. Company Snapshot

1.a. Company Description

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally.The company offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, FDP substrates, and other types of electrical and optical components.It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers 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.

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1.b. Last Insights on PLAB

Negative drivers behind Photronics, Inc.'s recent performance include a decline in the company's cash flow from operations, which decreased by 34.4% year-over-year in Q1 2025. Additionally, the company's cash flow from investing activities increased significantly, indicating a substantial outlay of funds. Furthermore, the recent earnings release did not provide any positive surprises, and the company's guidance for the next quarter was muted. The semiconductor industry's cyclical nature and potential headwinds from macroeconomic conditions also pose a risk to Photronics' future performance.

1.c. Company Highlights

2. Photronics' Q4 2025 Earnings: A Strong Finish to the Year

Photronics delivered a robust fiscal fourth quarter 2025, with sales reaching $216 million, exceeding expectations and marking a 3% sequential increase. The company's non-GAAP diluted EPS also surpassed guidance, coming in at 60¢ per share. Revenue growth was driven by record high-end IC revenue, primarily from the US and Asia. The company's operational strengths and geographic footprint continue to support the delivery of high-quality photomasks. As noted by George Makrokostas, "We continue to leverage our operational strengths and geographic footprint to deliver high-quality photomasks."

Publication Date: Dec -20

📋 Highlights
  • Revenue Growth:: Q4 sales reached $216M, a 3% sequential increase, surpassing guidance with high-end IC revenue driving performance.
  • Non-GAAP EPS:: Exceeded guidance at 60¢/share, aided by tax valuation allowance reversal from improved US operations.
  • Geographic Expansion Impact:: Allen, Texas facility to generate mid/high-end node revenue, boosting margins starting H2 2026; Korea cleanroom expansion underway for 2026 installations.
  • High-End Market Share:: Dominant as the sole US high-end merchant mask supplier, with stable market share and demand for advanced node processes.

Segment Performance and Outlook

The company's investments are aligned with industry trends, focusing on advanced node migration and regionalization. Photronics is expanding its facilities strategically, with tool installation set to begin at its Allen, Texas facility in the coming months, and customer qualifications expected in the spring. The company's cleanroom expansion in Korea is also underway, with equipment installation slated for 2026. These investments are expected to drive revenue growth and improve gross margins.

Valuation and Growth Prospects

With a P/E Ratio of 13.97 and an EV/EBITDA of 4.94, Photronics' valuation appears reasonable. Analysts estimate next year's revenue growth at 6.8%. The company's ROIC is 10.9%, indicating effective capital allocation. The actual EPS of $0.6 beat estimates of $0.4533, demonstrating the company's strong execution. Photronics' market share remains stable, and it's poised to capitalize on growing high-end demand in the US. The company's strategic expansions and focus on high-end customers position it for long-term success.

Challenges and Opportunities

Despite softness in the mainstream business, particularly in China due to geopolitical issues, Photronics is focusing on high-end customers and higher-value product mix to maintain profitability. The company is also seeing increased pricing competition from new market entrants in China, but its high-end products have better ASPs. With its strong financial performance and growth prospects, Photronics is well-positioned to navigate these challenges and capitalize on emerging opportunities.

3. NewsRoom

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Constantine Macricostas Sells 50,000 Shares of Photronics (NASDAQ:PLAB) Stock

Apr -16

Source: defenseworld.net

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Best Value Stocks to Buy for April 15th

Apr -15

Source: zacks.com

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3 AI Semiconductor Stocks That Are Now Trading Below 20X Earnings

Apr -13

Source: 247wallst.com

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George Macricostas Sells 121,194 Shares of Photronics (NASDAQ:PLAB) Stock

Apr -12

Source: defenseworld.net

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Seeking AI Exposure? Top Ranked Stocks Worth a Look

Apr -06

Source: zacks.com

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A Photronics Director Sold 10,000 Company Shares. Should Investors Avoid the Stock?

Apr -04

Source: fool.com

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Wall Street Analysts See a 25.12% Upside in Photronics (PLAB): Can the Stock Really Move This High?

Mar -31

Source: zacks.com

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Photronics Receives Advanced Mask Writer, Expanding AMOLED Leadership

Mar -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.58%)

6. Segments

Integrated Circuits

Expected Growth: 3.5%

Photronics, Inc.'s Integrated Circuits segment growth of 3.5% is driven by increasing demand for advanced semiconductor devices, particularly in the 5G, IoT, and automotive markets. Additionally, the company's investments in cutting-edge technology and manufacturing capacity expansions are expected to improve efficiency and reduce costs, further supporting growth.

Flat Panel Display

Expected Growth: 3.8%

The 3.8% growth in Flat Panel Display from Photronics, Inc. is driven by increasing demand for high-resolution displays, advancements in OLED technology, and rising adoption in emerging markets. Additionally, growing sales of smartphones, TVs, and laptops, as well as the trend towards mini-LED and micro-LED displays, contribute to the segment's growth.

7. Detailed Products

High-Volume Fabless Semiconductor Photomasks

Photronics provides high-volume photomasks for fabless semiconductor companies, enabling them to produce high-performance and low-power semiconductor devices.

Mainstream Semiconductor Photomasks

Photronics offers mainstream photomasks for semiconductor companies, supporting the production of a wide range of semiconductor devices.

Advanced Mask Technology (AMT) Solutions

Photronics' AMT solutions provide advanced photomask technologies, including extreme ultraviolet lithography (EUVL) and nanoimprint lithography (NIL), for next-generation semiconductor devices.

Micro-LED Display Photomasks

Photronics provides photomasks for micro-LED displays, enabling the production of high-brightness, high-contrast, and low-power displays.

MEMS and Sensor Photomasks

Photronics offers photomasks for micro-electromechanical systems (MEMS) and sensors, supporting the production of devices like accelerometers, gyroscopes, and pressure sensors.

8. Photronics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Photronics, Inc. operates in the semiconductor industry, which is characterized by rapid technological advancements. While there are substitutes available, such as outsourcing to other manufacturers, the company's strong relationships with its customers and its ability to provide customized solutions reduce the threat of substitutes.

Bargaining Power Of Customers

Photronics, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are highly customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Photronics, Inc. relies on a few key suppliers for its raw materials and equipment. While the company has some bargaining power due to its size and reputation, the suppliers also have some leverage due to the specialized nature of their products.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital expenditures and technological expertise. Additionally, Photronics, Inc. has established relationships with its customers and has a strong reputation in the industry, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with several established players competing for market share. Photronics, Inc. faces intense competition from companies such as Taiwan Semiconductor Manufacturing Company and United Microelectronics Corporation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.46%
Debt Cost 3.95%
Equity Weight 97.54%
Equity Cost 10.97%
WACC 10.79%
Leverage 2.53%

11. Quality Control: Photronics, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ACM Research

A-Score: 5.7/10

Value: 6.3

Growth: 9.7

Quality: 6.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
NVE

A-Score: 5.3/10

Value: 1.9

Growth: 3.2

Quality: 9.1

Yield: 10.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
inTEST

A-Score: 4.3/10

Value: 7.1

Growth: 4.4

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Photronics

A-Score: 4.1/10

Value: 5.5

Growth: 6.0

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Trio-Tech

A-Score: 3.7/10

Value: 3.9

Growth: 1.7

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
QuickLogic

A-Score: 3.4/10

Value: 6.6

Growth: 5.9

Quality: 4.1

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.84$

Current Price

45.84$

Potential

-0.00%

Expected Cash-Flows