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Stock impact report

Photronics: Higher Capital Intensity And Steep Valuations May Cap Intermediate Upside [Seeking Alpha]

Photronics, Inc. (PLAB) 
Last photronics, inc. earnings: 3/4 06:00 am Check Earnings Report
Company Research Source: Seeking Alpha
PLAB delivered Q1 double beats, but revenue growth is expected to slow in Q2 due to seasonal Chinese New Year effects. Valuation is stretched: PLAB trades at an 18.2x forward P/E, a 43% premium to its historical average, with a PEG ratio over 7x and an FCF yield of only 3%. Elevated capital intensity this year will pressure forward free cash flow and limit shareholder returns. The stock is seeing good momentum, but the long-term charts point to some caution, while the relative strength ratio has also more than mean-reverted. kentoh/iStock via Getty Images Background Photronics, Inc. ( PLAB ), with roots in Connecticut, has manufacturing units in 11 locations across the world. The bulk of its production facilities, as well as its revenue profile, is oriented around Asia. PLAB is known for its expertise in the construction of Photomasks (it This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies Show less Read more
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