Applied Materials
Market Cap
US$96.7b
Last Updated
2021/01/14 23:25 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 excellent 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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AMAT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
11.9%
AMAT
3.4%
US Semiconductor
0.6%
US Market
1 Year Return
67.4%
AMAT
55.9%
US Semiconductor
21.0%
US Market
Return vs Industry: AMAT exceeded the US Semiconductor industry which returned 56.3% over the past year.
Return vs Market: AMAT exceeded the US Market which returned 22% over the past year.
Shareholder returns
| AMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.9% | 3.4% | 0.6% |
| 30 Day | 19.6% | 8.6% | 4.2% |
| 90 Day | 67.9% | 20.8% | 12.4% |
| 1 Year | 69.6%67.4% | 58.6%55.9% | 23.7%21.0% |
| 3 Year | 93.3%84.3% | 108.7%97.8% | 47.4%37.6% |
| 5 Year | 577.1%529.4% | 374.6%328.4% | 131.6%105.9% |
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
1 week ago | Simply Wall St
Applied Materials (NASDAQ:AMAT) Has Rewarded Shareholders With An Exceptional 503% Total Return On Their Investment2 weeks ago | Simply Wall St
Should You Be Excited About Applied Materials' (NASDAQ:AMAT) Returns On Capital?2 weeks ago | Simply Wall St
Have Insiders Sold Applied Materials, Inc. (NASDAQ:AMAT) Shares Recently?Valuation
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
26.78x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AMAT ($105.8) is trading above our estimate of fair value ($93.98)
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 (26.8x) compared to the US Semiconductor industry average (44.8x).
PE vs Market: AMAT is poor value based on its PE Ratio (26.8x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (9.1x) compared to the US Semiconductor industry average (4.3x).
Next Steps
Future Growth
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
13.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (13% per year) is above the savings rate (2%).
Earnings vs Market: AMAT's earnings (13% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (8% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: AMAT's revenue (8% 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 (31.2%)
Next Steps
Past Performance
How has Applied Materials performed over the past 5 years?
14.6%
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%) are higher than last year (18.5%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: AMAT's earnings growth over the past year (33.7%) exceeds its 5-year average (14.6% per year).
Earnings vs Industry: AMAT earnings growth over the past year (33.7%) exceeded the Semiconductor industry 20.8%.
Return on Equity
High ROE: AMAT's Return on Equity (34.2%) is considered high.
Next Steps
Financial Health
How is Applied Materials's financial position?
Financial Position Analysis
Short Term Liabilities: AMAT's short term assets ($13.4B) exceed its short term liabilities ($4.5B).
Long Term Liabilities: AMAT's short term assets ($13.4B) exceed its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: AMAT's debt to equity ratio (51.5%) is considered high.
Reducing Debt: AMAT's debt to equity ratio has reduced from 59.4% to 51.5% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (69.8%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (24.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Applied Materials's current dividend yield, its reliability and sustainability?
0.83%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AMAT's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: AMAT's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.88%).
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 (22%), 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 (23.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Gary Dickerson (63 yo)
7.33yrs
Tenure
US$14,072,395
Compensation
Mr. Gary E. Dickerson has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June 19, 2012 respectively. Mr. Dickerson is responsible for the day-to-day o...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD14.07M) is above average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.33yrs | US$14.07m | 0.18% $ 178.7m | |
| Senior VP & CFO | 3.42yrs | US$5.15m | 0.016% $ 15.4m | |
| Senior VP & GM of New Markets and Service Group | 7.33yrs | US$4.98m | 0.040% $ 38.7m | |
| Senior Vice President of Semiconductor Products Group | 3.17yrs | US$3.90m | 0.031% $ 29.6m | |
| Senior Vice President of Operations & Quality | 5.58yrs | US$3.37m | 0.030% $ 29.5m | |
| Corporate VP | 7.33yrs | no data | 0.0071% $ 6.8m | |
| Senior VP | 1yr | US$3.44m | 0.015% $ 14.3m | |
| Group VP & Chief Information Officer | 11yrs | no data | no data | |
| Vice President of Investor Relations | 12yrs | no data | no data | |
| Senior VP | 0.58yr | no data | no data | |
| Corporate Vice President of Communications | 8.58yrs | no data | no data | |
| Group VP & Head of Human Resources | 3yrs | no data | no data |
7.3yrs
Average Tenure
58yo
Average Age
Experienced Management: AMAT's management team is seasoned and experienced (7.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.33yrs | US$14.07m | 0.18% $ 178.7m | |
| Senior VP | 1yr | US$3.44m | 0.015% $ 14.3m | |
| Independent Director | 5.17yrs | US$312.62k | 0.0018% $ 1.7m | |
| Independent Director | 13.5yrs | US$324.62k | 0.016% $ 15.6m | |
| Independent Director | 4.5yrs | US$344.12k | 0.0022% $ 2.2m | |
| Chairman Emeritus | 11.83yrs | US$454.23k | no data | |
| Independent Director & Member of the Growth Technical Advisory Board | 1yr | US$337.87k | 0.0078% $ 7.5m | |
| Independent Director | 3yrs | US$331.12k | 0.0011% $ 1.1m | |
| Independent Chairman of the Board | 3.83yrs | US$476.62k | 0.0071% $ 6.9m | |
| Independent Director | 5.08yrs | US$345.12k | 0.00028% $ 270.9k | |
| Independent Director | 12.33yrs | US$312.62k | 0.00028% $ 270.9k | |
| Co-Chair of the Growth Technical Advisory Board | 1yr | no data | no data |
4.8yrs
Average Tenure
63yo
Average Age
Experienced Board: AMAT's board of directors are considered experienced (4.8 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$96.738b
- Shares outstanding: 914.34m
- 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
| 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 |
| AP2 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Dec 1972 |
| AMAT | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 5 REPR 1 ORD COM STK USD0.01 | AR | ARS | Sep 2000 | |
| A1MT34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
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 | 2021/01/14 23:25 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/10/25 |
| 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.