Photronics, Inc. [NASDAQ:PLAB]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Photronics, Inc. [PLAB], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in October. On average, stock market experts give PLAB an Outperform rating. The average 12-month price forecast for this stock is $12.50, with the high estimate being $15.00, the low estimate being $10.00 and the median estimate amounting to $12.50. This is compared to its latest closing price of $9.85.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Photronics, Inc. [PLAB] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Jul-18 Photronics, Inc. [PLAB] generated $0.14 billion in sales. That’s 2.81% higher than the average estimate of $0.13 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 13 Feb (In 36 Days).
Fundamental Analysis of Photronics, Inc. [PLAB]
Now let’s turn to look at profitability: with a current Operating Margin for Photronics, Inc. [PLAB] sitting at +12.27 and its Gross Margin at +24.58, this company’s Net Margin is now 7.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 6.95, and its Return on Invested Capital has reached 7.10%. its Return on Equity is 5.59, and its Return on Assets is 3.95. These metrics suggest that this Photronics, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Photronics, Inc. [PLAB] has generated a Total Debt to Total Equity ratio of 7.56. Similarly, its Total Debt to Total Capital is 7.03, while its Total Debt to Total Assets stands at 5.18. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 4.01 and its Total Debt to EBITDA Value is 0.38. The Enterprise Value to Sales for this firm is now 1.12, and its Total Debt to Enterprise Value stands at 0.10. Photronics, Inc. [PLAB] has a Price to Book Ratio of 0.86, a Price to Cash Flow Ratio of 5.58 and P/E Ratio of 16.50. These metrics all suggest that Photronics, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Photronics, Inc. [PLAB] earns $339,858 for each employee under its payroll. Income works out to $26,702 per employee. Similarly, this company’s Receivables Turnover is 4.74 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.48 and its Current Ratio is 2.63. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Photronics, Inc. [PLAB] has 67.68M shares outstanding, amounting to a total market cap of $665.29M. Its stock price has been found in the range of 7.20 to 11.00. At its current price, it has moved by -10.64% from its 52-week high, and it has moved 36.53% from its 52-week low.
This stock’s Beta value is currently 0.53, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.49. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Photronics, Inc. [PLAB] a Reliable Buy?
Shares of Photronics, Inc. [PLAB], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.