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Photronics Owner Earnings per Share (TTM)

: 1.02 (As of Apr. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Photronics's Owner Earnings per Share (TTM) ended in Apr. 2022 was $1.02. It's Price-to-Owner-Earnings ratio for today is 24.17.


The historical rank and industry rank for Photronics's Owner Earnings per Share (TTM) or its related term are showing as below:

PLAB' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 6.7   Med: 19.07   Max: 88.96
Current: 23.78


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Photronics was 88.96. The lowest was 6.70. And the median was 19.07.


PLAB's Price-to-Owner-Earnings is ranked worse than
61.18% of 425 companies
in the Semiconductors industry
Industry Median: 18.70 vs PLAB: 23.78

Photronics's Earnings per Share (Diluted) for the three months ended in Apr. 2022 was $0.45. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2022 was $1.44. It's PE Ratio ratio for today is 17.12.

Photronics's EPS without NRI for the three months ended in Apr. 2022 was $0.45. Its EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2022 was $1.44. It's PE Ratio without NRI ratio for today is 17.12.


Photronics Owner Earnings per Share (TTM) Historical Data

The historical data trend for Photronics's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Photronics Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.18 0.48 -0.45 0.74 0.58

Photronics Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 1.10 0.58 0.98 1.02

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Photronics's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Photronics Owner Earnings per Share (TTM) Distribution

For the Semiconductors industry and Technology sector, Photronics's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Photronics's Owner Earnings per Share (TTM) falls into.



Photronics Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Photronics's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 87.4
Depreciation, Depletion and Amortization 84.7
Change In Deferred Tax 0.0
5Y Average of Maintenance Capital Expenditure 89.5
Change In Working Capital -20.1
Shares Outstanding (Diluted Average) 61.1

1. Start with "Net Income" from income statement. Photronics's Net Income for the trailing twelve months (TTM) ended in Apr. 2022 was $87.4 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Photronics's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Apr. 2022 was $84.7 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Photronics's Change In Deferred Tax for the trailing twelve months (TTM) ended in Apr. 2022 was $0.0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $89.5 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Photronics's 5-Year Average Maintenance Capital Expenditure = $89.5 Mil

5. "Change In Working Capital" is from cashflow statement. Photronics's Change In Working Capital for the trailing twelve months (TTM) ended in Apr. 2022 was $-20.1 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Photronics's Shares Outstanding (Diluted Average) for the months ended in Apr. 2022 was 61.145 Mil.

Photronics's Onwer Earnings Per Share for Apr. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 87.383 +84.68+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-89.479106734317+-20.135)/61.145
=1.02

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=24.65/1.02
=24.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Photronics Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Photronics's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Photronics Business Description

Photronics logo
Industry
Traded in Other Exchanges
Address
15 Secor Road, Brookfield, CT, USA, 06804
Photronics is a U.S.-based company that is principally engaged in manufacturing photomasks. The photomasks are photographic quartz plates that contain microscopic images of electronic circuits that are used as a component in the manufacture of integrated circuits and flat-panel displays. The revenue from products designed for integrated circuits production accounts for the majority of total revenue, with the rest derived from products for flat-panel display production. The company's assets are located in Taiwan, Korea, and the United States. It generates revenue worldwide, including the United States, Europe, Taiwan, Korea, China, and elsewhere in Asia, with Asia contributing the majority of total revenue.
Executives
Lewis Adam M director 15 SECOR ROAD BROOKFIELD CT 06804
Liao Daniel Jl director 2045 EAST INNOVATION CIRCLE TEMPE AZ 85284
Paladino Mary director 15 SECOR ROAD BROOKFIELD CT 06804
Lee Kang Jyh officer: President, Asia IC Photomask 15 SECOR ROAD BROOKFIELD CT 06804
Jordan John P officer: SVP & Chief Financial Officer 600 EAST GREENWICH AVENUE WEST WARWICK RI 02893
Hsia Liang Choo director 15 SECOR RD. BROOKFIELD CT 06804
Gmt Capital Corp 10 percent owner GMT CAPITAL CORP 2300 WINDY RIDGE PARKWAY SUITE 550 SOUTH ATLANTA GA 30339
Burr Richelle E officer: VP, General Counsel & Secy 15 SECOR RD BROOKFIELD CT 06804
Kirlin Peter S officer: Senior VP, U.S. & Europe 15 SECOR ROAD BROOKFIELD CT 06804
Progler Christopher J officer: VP,Chief Technology Officer 15 SECOR ROAD BROOKFIELD CT 06804
Jeong Soo Hong officer: COO, President-Asia Operations 15 SECOR ROAD BROOKFIELD CT 06804
Luttati Michael J director, officer: Chief Executive Officer 15 SECOR ROAD BROOKFIELD CT 06804
Maris Willem D director 15 SECOR ROAD BROOKFIELD CT 06804
Tyson Mitchell G director 15 SECOR ROAD BROOKFIELD CT 06804
Yomazzo Michael J director 15 SECOR ROAD PO BOX 5226 BROOKFIELD CT 06804

Photronics Headlines

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