Applied Materials
Market Cap
US$127.5b
Last Updated
2021/04/10 22:37 UTC
Data Sources
Company Financials +
Executive Summary
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. More Details
Snowflake Analysis
Outstanding track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Applied Materials's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AMAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: AMAT's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-1.8%
AMAT
2.0%
US Semiconductor
2.1%
US Market
1 Year Return
180.1%
AMAT
91.7%
US Semiconductor
56.3%
US Market
Return vs Industry: AMAT exceeded the US Semiconductor industry which returned 91.7% over the past year.
Return vs Market: AMAT exceeded the US Market which returned 56.3% over the past year.
Shareholder returns
| AMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 2.0% | 2.1% |
| 30 Day | 18.5% | 8.8% | 2.4% |
| 90 Day | 45.4% | 10.7% | 6.1% |
| 1 Year | 183.5%180.1% | 94.7%91.7% | 59.1%56.3% |
| 3 Year | 159.8%147.7% | 124.9%113.3% | 65.7%55.1% |
| 5 Year | 593.6%547.0% | 345.9%302.8% | 122.3%97.6% |
Long-Term Price Volatility Vs. Market
How volatile is Applied Materials's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Applied Materials (NASDAQ:AMAT) Knows How To Allocate Capital Effectively5 days ago | Simply Wall St
This Insider Has Just Sold Shares In Applied Materials, Inc. (NASDAQ:AMAT)2 weeks ago | Simply Wall St
Calculating The Intrinsic Value Of Applied Materials, Inc. (NASDAQ:AMAT)Valuation
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
32.98x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AMAT ($138.91) is trading above our estimate of fair value ($95.45)
Significantly Below Fair Value: AMAT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AMAT is good value based on its PE Ratio (33x) compared to the US Semiconductor industry average (40.7x).
PE vs Market: AMAT is poor value based on its PE Ratio (33x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (5.5x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (11.1x) compared to the US Semiconductor industry average (5.3x).
Future Growth
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
6.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (6% per year) is above the savings rate (2%).
Earnings vs Market: AMAT's earnings (6% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (5.9% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: AMAT's revenue (5.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMAT's Return on Equity is forecast to be high in 3 years time (34.9%)
Past Performance
How has Applied Materials performed over the past 5 years?
13.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMAT has high quality earnings.
Growing Profit Margin: AMAT's current net profit margins (21.2%) are higher than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown by 13.6% per year over the past 5 years.
Accelerating Growth: AMAT's earnings growth over the past year (36.2%) exceeds its 5-year average (13.6% per year).
Earnings vs Industry: AMAT earnings growth over the past year (36.2%) exceeded the Semiconductor industry 30%.
Return on Equity
High ROE: AMAT's Return on Equity (33.6%) is considered high.
Financial Health
How is Applied Materials's financial position?
Financial Position Analysis
Short Term Liabilities: AMAT's short term assets ($14.3B) exceed its short term liabilities ($4.5B).
Long Term Liabilities: AMAT's short term assets ($14.3B) exceed its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: AMAT's debt to equity ratio (47.5%) is considered high.
Reducing Debt: AMAT's debt to equity ratio has increased from 46.7% to 47.5% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (77.8%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (25x coverage).
Balance Sheet
Dividend
What is Applied Materials's current dividend yield, its reliability and sustainability?
0.69%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AMAT's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: AMAT's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: AMAT's dividends per share have been stable in the past 10 years.
Growing Dividend: AMAT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.9%), AMAT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AMAT's dividends in 3 years are forecast to be thoroughly covered by earnings (14.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.6yrs
Average management tenure
CEO
Gary Dickerson (63 yo)
7.58yrs
Tenure
US$17,294,987
Compensation
Mr. Gary E. Dickerson has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June 19, 2012 respectively. Mr. Dickerson is responsible for the day-to-day o...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD17.29M) is above average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: AMAT's management team is seasoned and experienced (7.6 years average tenure).
Board Members
Experienced Board: AMAT's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AMAT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Applied Materials, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Applied Materials, Inc.
- Ticker: AMAT
- Exchange: NasdaqGS
- Founded: 1967
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$127.472b
- Shares outstanding: 917.66m
- Website: https://www.appliedmaterials.com
Number of Employees
Location
- Applied Materials, Inc.
- 3050 Bowers Avenue
- PO Box 58039
- Santa Clara
- California
- 95052-3299
- United States
Listings
Biography
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Gl...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 22:37 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2020/10/25 |
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.