Stock on Watch: Photronics, Inc. (PLAB)

Company Profile:

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally. The company offers photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits for use in the manufacture of semiconductors and flat panel displays (FPDs), as well as that are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, FPDs, and other types of electrical and optical components. It sells its products to semiconductor or FPD designers, manufacturers, 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 founded in 1969 and is based in Brookfield, Connecticut.

Recent News:

The company reported Q1 EPS of $0.03, in-line with the analyst estimate of $0.03. Revenue for the quarter came in at $109.8 million versus the consensus estimate of $108.88 million.

The company has a market cap of $733.67 million, a P/E ratio of 27.0 and a beta of 0.52. Photronics has a 12 month low of $8.20 and a 12 month high of $12.10. The company’s 20 day moving average price is $10.77 and its 250 day moving average price is $10.29.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PLAB’s strengths can be seen in its better growth and better profitability compared with its peers. Its net income has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator, RSI stands at 50.37 with positive bias. We rate Photronics, Inc. (PLAB) a STRONG BUY.