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Photronics Gross Margin %

: 20.08% (As of Jan. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Photronics's Gross Profit for the three months ended in Jan. 2021 was $30.5 Mil. Photronics's Revenue for the three months ended in Jan. 2021 was $152.1 Mil. Therefore, Photronics's Gross Margin % for the quarter that ended in Jan. 2021 was 20.08%.

Warning Sign:

Photronics Inc gross margin has been in long term decline. The average rate of decline per year is -3.4%.


NAS:PLAB' s Gross Margin % Range Over the Past 10 Years
Min: 20.26   Med: 24.08   Max: 27.31
Current: 21.69

20.26
27.31

During the past 13 years, the highest Gross Margin % of Photronics was 27.31%. The lowest was 20.26%. And the median was 24.08%.

NAS:PLAB's Gross Margin % is ranked lower than
65% of the 826 Companies
in the Semiconductors industry.

( Industry Median: 28.15 vs. NAS:PLAB: 21.69 )

Photronics had a gross margin of 20.08% for the quarter that ended in Jan. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Photronics was -3.40% per year.


Photronics Gross Margin % Historical Data

* 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
Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.55 20.26 24.57 21.94 22.09

Photronics Quarterly Data
Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21
Gross Margin % 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 21.66 21.32 23.90 21.36 20.08

Competitive Comparison
* 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.


Photronics Gross Margin % Distribution

* The bar in red indicates where Photronics's Gross Margin % falls into.



Photronics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Photronics's Gross Margin for the fiscal year that ended in Oct. 2020 is calculated as

Gross Margin % (A: Oct. 2020 )=Gross Profit (A: Oct. 2020 ) / Revenue (A: Oct. 2020 )
=134.7 / 609.691
=(Revenue - Cost of Goods Sold) / Revenue
=(609.691 - 475.037) / 609.691
=22.09 %

Photronics's Gross Margin for the quarter that ended in Jan. 2021 is calculated as


Gross Margin % (Q: Jan. 2021 )=Gross Profit (Q: Jan. 2021 ) / Revenue (Q: Jan. 2021 )
=30.5 / 152.067
=(Revenue - Cost of Goods Sold) / Revenue
=(152.067 - 121.538) / 152.067
=20.08 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Photronics  (NAS:PLAB) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Photronics had a gross margin of 20.08% for the quarter that ended in Jan. 2021 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Photronics Gross Margin % Related Terms


Photronics Gross Margin % Headlines

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