ASMLF - Photronics: Buybacks May Be On The Radar Expect Multiples To Soar

2024-02-08 04:58:53 ET

Summary

• Photronics is a market leader in the photomask industry, with a less cyclical nature compared to the industry.
• The company enjoys a growing Total Addressable Market and stands to benefit from the surge in AI.
• Photronics has a significant amount of unused cash that could be utilized for buybacks, potentially enhancing EPS growth.
• A cheap price, a rarity among high ROCE companies.

Opener

Photronics ( PLAB ) is a manufacturer of photomasks, which are highly precise photographic quartz or glass plates containing microscopic images of electronic circuits. These photomasks play a crucial role in the manufacturing of Integrated Circuits and Flat Panel Displays (FPDs). They are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication process. Photomasks are essential components in a wide range of electrical and optical devices....

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