Applied Materials
Market Cap
US$57.3b
Last Updated
2019/11/16 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
Snowflake
Fundamentals
Reasonable growth potential 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
10.8%
AMAT
0.09%
US Semiconductor
0.7%
US Market
1 Year Return
75.3%
AMAT
34.8%
US Semiconductor
12.9%
US Market
Return vs Industry: AMAT exceeded the US Semiconductor industry which returned 34.8% over the past year.
Return vs Market: AMAT exceeded the US Market which returned 12.9% over the past year.
Shareholder returns
| AMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.8% | 0.09% | 0.7% |
| 30 Day | 19.0% | 8.1% | 4.4% |
| 90 Day | 33.1% | 16.3% | 7.0% |
| 1 Year | 78.9%75.3% | 37.6%34.8% | 15.4%12.9% |
| 3 Year | 110.8%101.9% | 88.0%77.4% | 49.1%39.5% |
| 5 Year | 193.2%171.5% | 140.2%116.0% | 62.7%44.7% |
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
2 days ago | Simply Wall St
Why You Might Be Interested In Applied Materials, Inc. (NASDAQ:AMAT) For Its Upcoming Dividend2 days ago | Simply Wall St
Is Now An Opportune Moment To Examine Applied Materials, Inc. (NASDAQ:AMAT)?1 week ago | Simply Wall St
Is Applied Materials, Inc.'s (NASDAQ:AMAT) 37% ROE Better Than Average?Valuation
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
21.49x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AMAT ($62.06) is trading above our estimate of fair value ($51.95)
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 (21.5x) compared to the Semiconductor industry average (30.7x).
PE vs Market: AMAT is poor value based on its PE Ratio (21.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (7x) compared to the US Semiconductor industry average (2.9x).
Next Steps
Future Growth
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
15.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (15.6% per year) is above the savings rate (2.7%).
Earnings vs Market: AMAT's earnings (15.6% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (9.4% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: AMAT's revenue (9.4% 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 very high in 3 years time (41.8%).
Next Steps
Past Performance
How has Applied Materials performed over the past 5 years?
23.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMAT has high quality earnings.
Growing Profit Margin: AMAT's current net profit margins (18.5%) are lower than last year (19.2%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown significantly by 23.8% per year over the past 5 years.
Accelerating Growth: AMAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AMAT had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-11.6%).
Return on Equity
High ROE: AMAT's Return on Equity (32.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Applied Materials's financial position?
Financial Position Analysis
Short Term Liabilities: AMAT's short term assets ($10.2B) exceeds its short term liabilities ($4.4B)
Long Term Liabilities: AMAT's short term assets (10.2B) exceeds its long term liabilities (6.4B)
Debt to Equity History and Analysis
Debt Level: AMAT's debt to equity ratio (64.7%) is considered high
Reducing Debt: AMAT's debt to equity ratio has increased from 24.7% to 64.7% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (61.1%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (41.4x coverage).
Balance Sheet
Inventory Level: AMAT has a high level of physical assets or inventory.
Debt Coverage by Assets: AMAT's debt is covered by short term assets (assets are 1.9x debt).
Next Steps
Dividend
What is Applied Materials's current dividend yield, its reliability and sustainability?
1.35%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Applied Materials before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AMAT's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: AMAT's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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 reasonably low payout ratio (28.4%), 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 well covered by earnings (19% payout ratio).
Next Steps
Management
What is the CEO of Applied Materials's salary, the management and board of directors tenure and is there insider trading?
6.2yrs
Average management tenure
CEO
Gary Dickerson (62yo)
6.2yrs
Tenure
US$14,064,540
Compensation
Mr. Gary E. Dickerson has been an Executive Director of Applied Materials, Inc. since 2019. He has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June ...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD14.06M) is about average for companies of similar size in the US market ($USD11.01M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.2yrs
Average Tenure
57yo
Average Age
Experienced Management: AMAT's management team is seasoned and experienced (6.2 years average tenure).
Board Age and Tenure
8.4yrs
Average Tenure
63yo
Average Age
Experienced Board: AMAT's board of directors are considered experienced (8.4 years average tenure).
Insider Trading
Insider Buying: AMAT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of New Markets & Alliances Group |
| Shares | 25,727 |
| Max Price | US$52.12 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 25,218 |
| Max Price | US$51.44 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,000 |
| Max Price | US$46.00 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of New Markets & Alliances Group |
| Shares | 25,000 |
| Max Price | US$42.70 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$42.45 |
| Entity | Individual |
| Role | Chief Technology Officer Senior VP & CTO |
| Shares | 143,255 |
| Max Price | US$40.73 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Gary Dickerson (62yo)
President
- Tenure: 6.2yrs
- Compensation: US$14.06m
Gino Addiego (60yo)
Senior Vice President of Engineering
- Tenure: 4.4yrs
- Compensation: US$3.37m
Mike Sullivan
Vice President of Investor Relations
- Tenure: 10.8yrs
Steve Ghanayem (53yo)
Senior Vice President of New Markets & Alliances Group
- Tenure: 2yrs
- Compensation: US$5.78m
Jay Kerley
Group VP & Chief Information Officer
- Tenure: 9.8yrs
Dan Durn (53yo)
Senior VP & CFO
- Tenure: 2.3yrs
- Compensation: US$6.67m
Om Nalamasu (61yo)
Senior VP & CTO
- Tenure: 8.8yrs
- Compensation: US$3.44m
Ali Salehpour (58yo)
Senior Vice President of Services
- Tenure: 6.2yrs
- Compensation: US$4.81m
Charles Read (53yo)
Corporate VP
- Tenure: 6.2yrs
Prabu Raja (56yo)
Senior Vice President of Semiconductor Products Group
- Tenure: 2yrs
- Compensation: US$5.87m
Board Members
Aart de Geus (65yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$316.54k
Judy Bruner (60yo)
Independent Director
- Tenure: 3.3yrs
- Compensation: US$342.54k
Cy Morgan (81yo)
Chairman Emeritus
- Tenure: 10.7yrs
- Compensation: US$454.23k
Gary Dickerson (62yo)
President
- Tenure: 6.2yrs
- Compensation: US$14.06m
Stephen Forrest (69yo)
Independent Director
- Tenure: 11.4yrs
- Compensation: US$329.56k
Dennis Powell (71yo)
Independent Director
- Tenure: 12.2yrs
- Compensation: US$354.04k
Scott McGregor (63yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$325.58k
Tom Iannotti (63yo)
Independent Chairman of the Board
- Tenure: 2.7yrs
- Compensation: US$480.29k
Adrianna Ma (45yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$334.04k
Alexander Karsner (52yo)
Independent Director
- Tenure: 11.2yrs
- Compensation: US$314.54k
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$57.328b
- Shares outstanding: 923.75m
- Website: https://www.appliedmaterials.com
Number of Employees
Location
- Applied Materials, Inc.
- 3050 Bowers Avenue
- PO Box 58039
- Santa Clara
- California
- 95054
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AMAT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1972 |
| AMAT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 1972 |
| AP2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
| 4336 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Common Stock | HK | HKD | Dec 1972 |
| AP2 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 1972 |
| 0R1A | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1972 |
| AMAT | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Dec 1972 |
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 | 2019/11/16 23:31 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/10/27 |
| Annual Earnings | 2019/10/27 |
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.