Applied Materials
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Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The last earnings update was 34 days ago. More info.
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AMAT Share Price and Events
7 Day Returns
1 Year Returns
AMAT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Applied Materials (AMAT) | 2.5% | 10.3% | 13.2% | -3.7% | 85% | 91.2% |
| US Semiconductor | -0.5% | 6.2% | -2% | -3% | 79% | 80.8% |
| US Market | -0.4% | 2.8% | 2.7% | 4.3% | 40.9% | 38.2% |
1 Year Return vs Industry and Market
- AMAT matched the Semiconductor industry (-3%) over the past year.
- AMAT underperformed the Market in United States of America which returned 4.3% over the past year.
AMAT Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Applied Materials
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Applied Materials.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 25 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.1% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Semiconductor Unlevered Beta | Simply Wall St/ S&P Global | 1.23 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.226 (1 + (1- 21%) (13.02%)) |
1.236 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.24 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.236 * 5.96%) |
10.1% |
Discounted Cash Flow Calculation for NasdaqGS:AMAT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Applied Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.1%) |
|
|---|---|---|---|
| 2019 | 2,952.60 | Analyst x10 | 2,681.85 |
| 2020 | 3,292.44 | Analyst x9 | 2,716.30 |
| 2021 | 3,502.75 | Analyst x4 | 2,624.81 |
| 2022 | 3,885.00 | Analyst x1 | 2,644.29 |
| 2023 | 3,539.00 | Analyst x1 | 2,187.90 |
| 2024 | 3,336.92 | Est @ -5.71% | 1,873.80 |
| 2025 | 3,230.87 | Est @ -3.18% | 1,647.88 |
| 2026 | 3,185.45 | Est @ -1.41% | 1,475.73 |
| 2027 | 3,180.20 | Est @ -0.16% | 1,338.20 |
| 2028 | 3,202.57 | Est @ 0.7% | 1,224.04 |
| Present value of next 10 years cash flows | $20,414.80 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,202.57 × (1 + 2.73%) ÷ (10.1% – 2.73%) |
$44,666.40 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $44,666.40 ÷ (1 + 10.1%)10 |
$17,071.69 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $20,414.80 + $17,071.69 |
$37,486.49 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $37,486.49 / 936.10 |
$40.05 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $40.05 |
| Current discount | Discount to share price of
$43.58
= -1 x ($43.58 - $40.05) / $40.05 |
-8.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Applied Materials is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Applied Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Applied Materials's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-04-28) in USD | $3.60 |
| NasdaqGS:AMAT Share Price ** | NasdaqGS (2019-06-26) in USD | $43.58 |
| United States of America Semiconductor Industry PE Ratio | Median Figure of 69 Publicly-Listed Semiconductor Companies | 23.02x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Applied Materials.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:AMAT Share Price ÷ EPS (both in USD) = 43.58 ÷ 3.60 |
12.09x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Applied Materials is good value based on earnings compared to the US Semiconductor industry average.
- Applied Materials is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Applied Materials's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 12.09x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts |
14.2%per year |
| United States of America Semiconductor Industry PEG Ratio | Median Figure of 64 Publicly-Listed Semiconductor Companies | 1.09x |
| United States of America Market PEG Ratio | Median Figure of 2,133 Publicly-Listed Companies | 1.51x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 12.09x ÷ 14.2% |
0.85x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Applied Materials is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Applied Materials's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-04-28) in USD | $8.76 |
| NasdaqGS:AMAT Share Price * | NasdaqGS (2019-06-26) in USD | $43.58 |
| United States of America Semiconductor Industry PB Ratio | Median Figure of 107 Publicly-Listed Semiconductor Companies | 2.48x |
| United States of America Market PB Ratio | Median Figure of 5,255 Publicly-Listed Companies | 1.78x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:AMAT Share Price ÷ Book Value per Share (both in USD) = 43.58 ÷ 8.76 |
4.97x |
* Primary Listing of Applied Materials.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Applied Materials is overvalued based on assets compared to the US Semiconductor industry average.
Value checks
We assess Applied Materials's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check) Applied Materials has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
AMAT Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Applied Materials's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Applied Materials's earnings growth is expected to exceed the United States of America market average.
- Applied Materials's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:AMAT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts | 14.2% |
| NasdaqGS:AMAT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts | 8.6% |
| United States of America Semiconductor Industry Earnings Growth Rate | Market Cap Weighted Average | 18% |
| United States of America Semiconductor Industry Revenue Growth Rate | Market Cap Weighted Average | 7.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-10-31 | ||||
| 2022-10-31 | ||||
| 2021-10-31 | 17,385 | 4,370 | 3,838 | 11 |
| 2020-10-31 | 15,928 | 3,885 | 3,391 | 24 |
| 2019-10-31 | 14,488 | 3,528 | 2,794 | 25 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-04-28 | 15,761 | 3,344 | 3,485 |
| 2019-01-27 | 16,801 | 3,155 | 3,919 |
| 2018-10-28 | 17,253 | 3,787 | 3,313 |
| 2018-07-29 | 17,221 | 3,419 | 3,420 |
| 2018-04-29 | 16,497 | 4,163 | 3,172 |
| 2018-01-28 | 15,464 | 4,463 | 2,896 |
| 2017-10-29 | 14,537 | 3,789 | 3,434 |
| 2017-07-30 | 13,865 | 3,877 | 3,062 |
| 2017-04-30 | 12,942 | 3,481 | 2,642 |
| 2017-01-29 | 11,846 | 3,051 | 2,138 |
| 2016-10-30 | 10,825 | 2,566 | 1,721 |
| 2016-07-31 | 9,896 | 2,140 | 1,447 |
| 2016-05-01 | 9,565 | 1,493 | 1,271 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
All data from Applied Materials Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-10-31 | ||||
| 2022-10-31 | ||||
| 2021-10-31 | 4.40 | 4.99 | 3.99 | 7.00 |
| 2020-10-31 | 3.62 | 4.09 | 3.00 | 16.00 |
| 2019-10-31 | 2.94 | 2.99 | 2.75 | 16.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-04-28 | 3.60 |
| 2019-01-27 | 3.97 |
| 2018-10-28 | 3.27 |
| 2018-07-29 | 3.30 |
| 2018-04-29 | 3.01 |
| 2018-01-28 | 2.71 |
| 2017-10-29 | 3.20 |
| 2017-07-30 | 2.84 |
| 2017-04-30 | 2.44 |
| 2017-01-29 | 1.96 |
| 2016-10-30 | 1.55 |
| 2016-07-31 | 1.28 |
| 2016-05-01 | 1.09 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Applied Materials is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Applied Materials's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Applied Materials has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
AMAT Past Performance
How has Applied Materials performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Applied Materials has delivered over 20% year on year earnings growth in the past 5 years.
- Applied Materials's 1-year earnings growth is less than its 5-year average (10% vs 29.5%)
- Applied Materials's earnings growth has not exceeded the US Semiconductor industry average in the past year (10% vs 22.6%).
Earnings and Revenue History
All data from Applied Materials Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-04-28 | 15,761.00 | 3,485.00 | 998.00 | 2,045.00 |
| 2019-01-27 | 16,801.00 | 3,919.00 | 1,007.00 | 2,046.00 |
| 2018-10-28 | 17,253.00 | 3,313.00 | 1,002.00 | 2,019.00 |
| 2018-07-29 | 17,221.00 | 3,420.00 | 983.00 | 1,968.00 |
| 2018-04-29 | 16,497.00 | 3,172.00 | 937.00 | 1,918.00 |
| 2018-01-28 | 15,464.00 | 2,896.00 | 905.00 | 1,846.00 |
| 2017-10-29 | 14,537.00 | 3,434.00 | 890.00 | 1,774.00 |
| 2017-07-30 | 13,865.00 | 3,062.00 | 894.00 | 1,702.00 |
| 2017-04-30 | 12,942.00 | 2,642.00 | 882.00 | 1,634.00 |
| 2017-01-29 | 11,846.00 | 2,138.00 | 852.00 | 1,583.00 |
| 2016-10-30 | 10,825.00 | 1,721.00 | 819.00 | 1,540.00 |
| 2016-07-31 | 9,896.00 | 1,447.00 | 767.00 | 1,509.00 |
| 2016-05-01 | 9,565.00 | 1,271.00 | 787.00 | 1,495.00 |
| 2016-01-31 | 9,557.00 | 1,315.00 | 814.00 | 1,474.00 |
| 2015-10-25 | 9,659.00 | 1,377.00 | 833.00 | 1,451.00 |
| 2015-07-26 | 9,555.00 | 1,297.00 | 882.00 | 1,448.00 |
| 2015-04-26 | 9,330.00 | 1,269.00 | 856.00 | 1,433.00 |
| 2015-01-25 | 9,241.00 | 1,167.00 | 825.00 | 1,423.00 |
| 2014-10-26 | 9,072.00 | 1,072.00 | 852.00 | 1,428.00 |
| 2014-07-27 | 8,796.00 | 999.00 | 836.00 | 1,406.00 |
| 2014-04-27 | 8,506.00 | 866.00 | 862.00 | 1,383.00 |
| 2014-01-26 | 8,126.00 | 475.00 | 897.00 | 1,372.00 |
| 2013-10-27 | 7,509.00 | 256.00 | 891.00 | 1,320.00 |
| 2013-07-28 | 7,167.00 | -442.00 | 838.00 | 1,286.00 |
| 2013-04-28 | 7,535.00 | -392.00 | 865.00 | 1,260.00 |
| 2013-01-27 | 8,103.00 | 26.00 | 964.00 | 1,237.00 |
| 2012-10-28 | 8,719.00 | 109.00 | 995.00 | 1,237.00 |
| 2012-07-29 | 9,254.00 | 1,079.00 | 1,051.00 | 1,201.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Applied Materials made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
- Applied Materials used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
- Applied Materials has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Applied Materials's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Applied Materials has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
AMAT Health
How is Applied Materials's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Applied Materials's finances.
The net worth of a company is the difference between its assets and liabilities.
- Applied Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Applied Materials's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Applied Materials Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-04-28 | 8,201.00 | 5,311.00 | 3,623.00 |
| 2019-01-27 | 8,209.00 | 5,310.00 | 3,712.00 |
| 2018-10-28 | 6,839.00 | 5,309.00 | 4,030.00 |
| 2018-07-29 | 6,825.00 | 5,308.00 | 3,984.00 |
| 2018-04-29 | 7,042.00 | 5,306.00 | 5,352.00 |
| 2018-01-28 | 8,506.00 | 5,305.00 | 7,454.00 |
| 2017-10-29 | 9,349.00 | 5,304.00 | 7,276.00 |
| 2017-07-30 | 8,716.00 | 5,303.00 | 7,231.00 |
| 2017-04-30 | 8,212.00 | 5,502.00 | 6,744.00 |
| 2017-01-29 | 7,687.00 | 3,325.00 | 4,147.00 |
| 2016-10-30 | 7,217.00 | 3,325.00 | 3,749.00 |
| 2016-07-31 | 6,819.00 | 3,343.00 | 3,266.00 |
| 2016-05-01 | 6,565.00 | 3,343.00 | 2,640.00 |
| 2016-01-31 | 7,168.00 | 3,343.00 | 3,116.00 |
| 2015-10-25 | 7,613.00 | 4,542.00 | 4,965.00 |
| 2015-07-26 | 7,977.00 | 1,947.00 | 2,743.00 |
| 2015-04-26 | 8,351.00 | 1,947.00 | 3,230.00 |
| 2015-01-25 | 8,072.00 | 1,947.00 | 3,087.00 |
| 2014-10-26 | 7,868.00 | 1,947.00 | 3,162.00 |
| 2014-07-27 | 7,684.00 | 1,947.00 | 2,871.00 |
| 2014-04-27 | 7,475.00 | 1,947.00 | 2,599.00 |
| 2014-01-26 | 7,241.00 | 1,946.00 | 2,289.00 |
| 2013-10-27 | 7,088.00 | 1,946.00 | 1,891.00 |
| 2013-07-28 | 6,954.00 | 1,946.00 | 1,975.00 |
| 2013-04-28 | 6,898.00 | 1,946.00 | 1,770.00 |
| 2013-01-27 | 7,141.00 | 1,946.00 | 1,753.00 |
| 2012-10-28 | 7,235.00 | 1,946.00 | 1,937.00 |
| 2012-07-29 | 8,339.00 | 1,946.00 | 2,164.00 |
- Applied Materials's level of debt (64.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (26% vs 64.8% today).
- Debt is well covered by operating cash flow (63%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 32x coverage).
Financial health checks
We assess Applied Materials's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Applied Materials has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
AMAT Dividends
What is Applied Materials's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Applied Materials
shares you are expected to receive
$39
in your first year as a dividend.
Dividend Amount
- Applied Materials's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Applied Materials's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Upcoming dividend payment
Purchase Applied Materials before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| United States of America Semiconductor Industry Average Dividend Yield | Market Cap Weighted Average of 32 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2012 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-10-31 | ||
| 2022-10-31 | ||
| 2021-10-31 | 0.94 | 8.00 |
| 2020-10-31 | 0.89 | 12.00 |
| 2019-10-31 | 0.83 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-06-07 | 0.840 | 1.987 |
| 2019-03-08 | 0.840 | 2.039 |
| 2018-12-07 | 0.800 | 2.231 |
| 2018-09-06 | 0.800 | 2.232 |
| 2018-06-07 | 0.800 | 1.719 |
| 2018-05-24 | 0.800 | 1.547 |
| 2018-05-17 | 0.800 | 1.576 |
| 2017-12-15 | 0.400 | 0.736 |
| 2017-09-07 | 0.400 | 0.762 |
| 2017-06-08 | 0.400 | 0.905 |
| 2017-03-09 | 0.400 | 0.974 |
| 2016-12-01 | 0.400 | 1.176 |
| 2016-09-08 | 0.400 | 1.354 |
| 2016-06-09 | 0.400 | 1.528 |
| 2016-03-10 | 0.400 | 1.888 |
| 2015-12-07 | 0.400 | 2.244 |
| 2015-09-10 | 0.400 | 2.440 |
| 2015-06-05 | 0.400 | 2.262 |
| 2015-03-09 | 0.400 | 1.865 |
| 2014-12-08 | 0.400 | 1.652 |
| 2014-09-08 | 0.400 | 1.827 |
| 2014-06-09 | 0.400 | 1.805 |
| 2014-03-04 | 0.400 | 2.032 |
| 2013-12-10 | 0.400 | 2.275 |
| 2013-09-09 | 0.400 | 2.321 |
| 2013-06-18 | 0.400 | 2.550 |
| 2013-03-05 | 0.400 | 2.832 |
| 2012-12-04 | 0.360 | 2.931 |
| 2012-09-12 | 0.360 | 3.294 |
| 2012-06-12 | 0.360 | 3.207 |
| 2012-03-05 | 0.360 | 3.119 |
| 2011-12-06 | 0.320 | 2.732 |
| 2011-09-13 | 0.320 | 2.837 |
| 2011-06-07 | 0.320 | 2.659 |
| 2011-03-08 | 0.320 | 2.164 |
| 2010-12-08 | 0.280 | 1.872 |
| 2010-09-15 | 0.280 | 2.308 |
| 2010-06-09 | 0.280 | 2.372 |
| 2010-03-08 | 0.280 | 2.125 |
| 2009-12-08 | 0.240 | 1.833 |
| 2009-09-16 | 0.240 | 1.859 |
| 2009-06-09 | 0.240 | 1.934 |
| 2009-03-10 | 0.240 | 2.145 |
| 2008-12-09 | 0.240 | 2.474 |
| 2008-09-17 | 0.240 | 2.074 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Applied Materials's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (4.4x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).
Income/ dividend checks
We assess Applied Materials's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Applied Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Applied Materials has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
AMAT Management
CEO
| COMPENSATION | $14,064,540 |
| AGE | 61 |
| TENURE AS CEO | 5.8 years |
CEO Bio
Mr. Gary E. Dickerson has been an Executive Director of Applied Materials, Inc. since 2019. He has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June 19, 2012 respectively. Mr. Dickerson is responsible for the day-to-day operation and performance of the Applied Materials four business units. Mr. Dickerson served as the Chief Executive Officer of Varian Semiconductor Equipment Associates Inc. since October 16, 2004 and served as its President. He has over 25 years experience in the semiconductor industry. He joined Varian Semiconductor Equipment Associates Inc. from KLA-Tencor Corporation, where he served as President from July 2002 to April 30, 2004 and its Chief Operating Officer from July 1999 to April 2004. Mr. Dickerson joined KLA-Tencor Corporation in January 1986 and served as an Executive Vice President of the Customer Group from July 1997 to June 30, 1999; Group Vice President for the Wafer Inspection Group from January 1996 and General Manager of the Wisard Division since 1994. He serves as a Member of Strategic Advisory Board at Direct Grid Technologies, LLC. He has been an Executive Director at Applied Materials, Inc., since September 1, 2013. Mr. Dickerson started his semiconductor career in manufacturing and engineering management at General Motors’ Delco Electronics Division and then AT&T Technologies. Mr. Dickerson served as Director of Varian Semiconductor Equipment Associates Inc. since October 16, 2004. He has a Bachelor's of Science Degree in Engineering Management from the University of Missouri, Rolla and a Master's Degree in Business Administration from the University of Missouri, Kansas City.
CEO Compensation
- Gary's compensation has been consistent with company performance over the past year, both up more than 20%.
- Gary's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Applied Materials management team in years:
- The average tenure for the Applied Materials management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Gary Dickerson
President
$14M
61
5.8 yrs
Dan Durn
Senior VP & CFO
$7M
52
1.8 yrs
Steve Ghanayem
Senior Vice President of New Markets & Alliances Group
$6M
52
1.6 yrs
Ali Salehpour
Senior Vice President of Services
$5M
57
5.8 yrs
Prabu Raja
Senior Vice President of Semiconductor Products Group
$6M
55
1.6 yrs
Gino Addiego
Senior Vice President of Engineering
$3M
59
4 yrs
Charles Read
Corporate VP
52
5.8 yrs
Om Nalamasu
Senior VP & CTO
$3M
60
8.4 yrs
Jay Kerley
Group VP & Chief Information Officer
9.4 yrs
Mike Sullivan
Vice President of Investor Relations
10.4 yrs
Board of Directors Tenure
Average tenure and age of the Applied Materials board of directors in years:
- The tenure for the Applied Materials board of directors is about average.
Board of Directors
Tom Iannotti
Chairman of the Board
$480K
62
2.3 yrs
Gary Dickerson
President
$14M
61
5.8 yrs
Cy Morgan
Chairman Emeritus
$454K
80
10.3 yrs
Aart de Geus
Independent Director
$317K
64
11.9 yrs
Dennis Powell
Independent Director
$354K
70
11.8 yrs
Adrianna Ma
Independent Director
$334K
44
3.5 yrs
Judy Bruner
Independent Director
$343K
59
2.9 yrs
Stephen Forrest
Independent Director
$330K
68
11 yrs
Alexander Karsner
Independent Director
$315K
51
10.8 yrs
Eric Chen
Independent Director
$315K
48
3.6 yrs
Who owns this company?
Recent Insider Trading
- Applied Materials individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Apr 19 | Sell | Stephen Forrest | Individual | 03. Apr 19 | 03. Apr 19 | -2,000 | $42.45 | $-84,900 | ||
| 05. Apr 19 | Sell | Steve Ghanayem | Individual | 03. Apr 19 | 03. Apr 19 | -25,000 | $42.70 | $-1,067,500 | ||
| 23. Mar 19 | Sell | Omkaram Nalamasu | Individual | 21. Mar 19 | 21. Mar 19 | -143,255 | $40.73 | $-5,834,776 | ||
Management checks
We assess Applied Materials's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Applied Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
AMAT News
Simply Wall St News
Did Applied Materials, Inc.'s (NASDAQ:AMAT) Recent Earnings Growth Beat The Trend?
(NASDAQ:AMAT) announced its most recent earnings (28 April 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … See our latest analysis for Applied Materials Did AMAT's recent earnings growth beat the long-term trend and the industry? … You should continue to research Applied Materials to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for AMAT’s future growth?
Simply Wall St - – Full articleHas Applied Materials, Inc. (NASDAQ:AMAT) Improved Earnings Growth In Recent Times?
When Applied Materials, Inc.'s (NASDAQ:AMAT) announced its latest earnings (28 April 2019), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Applied Materials's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for Applied Materials Commentary On AMAT's Past Performance AMAT's trailing twelve-month earnings (from 28 April 2019) of US$3.5b has increased by 10.0% compared to the previous year.
Simply Wall St - – Full articleApplied Materials, Inc. (NASDAQ:AMAT): Is Growth Priced In?
Stocks like Applied Materials, with a price-to-earnings (P/E) ratio of 11.48x, always catch the eye of investors on the hunt for a bargain. … NasdaqGS:AMAT Price Estimation Relative to Market, June 7th 2019 Applied Materials's price-to-earnings ratio stands at 11.48x, which is low, relative to the industry average. … A PE ratio of 11.48x and expected year-on-year earnings growth of 13% give Applied Materials a low PEG ratio of 0.87x.
Simply Wall St - – Full articleAre Insiders Selling Applied Materials, Inc. (NASDAQ:AMAT) Stock?
So we'll take a look at whether insiders have been buying or selling shares in Applied Materials, Inc. … Check out our latest analysis for Applied Materials Applied Materials Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Senior VP & CTO, Omkaram Nalamasu, for US$5.8m worth of shares, at about US$40.73 per share. … Insiders in Applied Materials didn't buy any shares in the last year.
Simply Wall St - – Full articleConsider These Factors, Then Buy Applied Materials, Inc. (NASDAQ:AMAT)
High quality companies, such as Applied Materials, Inc., are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … View our latest analysis for Applied Materials Applied Materials, Inc. … This is the beginning of your research, but before you decide to buy AMAT, I highly urge you to understand more about the company, in particular, in these following areas: Future Outlook: What are well-informed industry analysts predicting for AMAT’s future growth?
Simply Wall St - – Full articleAre You An Income Investor? Don't Miss Out On Applied Materials, Inc. (NASDAQ:AMAT)
Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Applied Materials has grown its earnings per share at 79% per annum over the past five years. … Earnings growth generally bodes well for the future value of company dividend payments.
Simply Wall St - – Full articleApplied Materials, Inc. (NASDAQ:AMAT): Time For A Financial Health Check
View our latest analysis for Applied Materials AMAT’s Debt (And Cash Flows) Over the past year, AMAT has maintained its debt levels at around US$5.3b which accounts for long term debt. … Moreover, AMAT has produced cash from operations of US$3.2b in the last twelve months, leading to an operating cash to total debt ratio of 59%, meaning that AMAT’s debt is appropriately covered by operating cash. … Next Steps: Although AMAT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.
Simply Wall St - – Full articleWhy Applied Materials, Inc.’s (NASDAQ:AMAT) Return On Capital Employed Is Impressive
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:
Simply Wall St - – Full articleShould You Be Adding Applied Materials (NASDAQ:AMAT) To Your Watchlist Today?
Applied Materials's Earnings Per Share Are Growing. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … Applied Materials maintained stable EBIT margins over the last year, all while growing revenue 8.7% to US$17b.
Simply Wall St - – Full articleA Look At The Fair Value Of Applied Materials, Inc. (NASDAQ:AMAT)
by estimating the company's future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
Simply Wall St - – Full articleAMAT Company Info
Description
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation and nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices, as well as equipment for flexible substrates. The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.
Details
| Name: | Applied Materials, Inc. |
| AMAT | |
| Exchange: | NasdaqGS |
| Founded: | 1967 |
| $40,795,452,805 | |
| 936,104,929 | |
| Website: | http://www.appliedmaterials.com |
| Address: |
Applied Materials, Inc. 3050 Bowers Avenue, PO Box 58039, Santa Clara, California, 95052, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | AMAT | Common Stock | Nasdaq Global Select | US | USD | 14. Dec 1972 | |
| DB | AP2 | Common Stock | Deutsche Boerse AG | DE | EUR | 14. Dec 1972 | |
| XTRA | AP2 | Common Stock | XETRA Trading Platform | DE | EUR | 14. Dec 1972 | |
| SEHK | 4336 | Common Stock | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 14. Dec 1972 | |
| WBAG | AMAT | Common Stock | Wiener Boerse AG | AT | EUR | 14. Dec 1972 | |
| BMV | AMAT * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 14. Dec 1972 | |
| BASE | AMAT | CEDEAR EACH 5 REPR 1 ORD COM STK USD0.01 | Buenos Aires Stock Exchange | AR | ARS | 12. Sep 2000 |
Number of employees
Current staff
Industry
| Semiconductor Equipment | |
| Semiconductors |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/26 23:33 |
| End of day share price update: | 2019/06/26 00:00 |
| Last estimates confirmation: | 2019/06/20 |
| Last earnings filing: | 2019/05/23 |
| Last earnings reported: | 2019/04/28 |
| Last annual earnings reported: | 2018/10/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
