Applied Materials
Market Cap
US$57.4b
Last Updated
2020/07/12 23:51 UTC
Data Sources
Company Financials +
Executive Summary
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average dividend payer.
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
2.6%
AMAT
3.8%
US Semiconductor
2.3%
US Market
1 Year Return
34.6%
AMAT
36.3%
US Semiconductor
6.7%
US Market
Return vs Industry: AMAT underperformed the US Semiconductor industry which returned 36.3% over the past year.
Return vs Market: AMAT exceeded the US Market which returned 6.7% over the past year.
Shareholder returns
| AMAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 3.8% | 2.3% |
| 30 Day | 10.7% | 9.2% | 7.4% |
| 90 Day | 25.5% | 26.8% | 17.9% |
| 1 Year | 36.6%34.6% | 38.9%36.3% | 9.0%6.7% |
| 3 Year | 42.0%35.7% | 81.8%72.0% | 36.6%27.7% |
| 5 Year | 280.9%252.2% | 200.0%170.6% | 64.2%46.1% |
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
4 days ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In Applied Materials, Inc.'s NASDAQ:AMAT) Stock?2 weeks ago | Simply Wall St
The Independent Director of Applied Materials, Inc. (NASDAQ:AMAT), Alexander Karsner, Just Sold 90% Of Their Holding2 weeks ago | Simply Wall St
Why Applied Materials, Inc. (NASDAQ:AMAT) Could Be Worth WatchingValuation
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
18.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AMAT ($62.59) is trading below our estimate of fair value ($76.56)
Significantly Below Fair Value: AMAT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AMAT is good value based on its PE Ratio (19.8x) compared to the US Semiconductor industry average (37x).
PE vs Market: AMAT is poor value based on its PE Ratio (19.8x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (6.4x) compared to the US Semiconductor industry average (3.2x).
Next Steps
Future Growth
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
15.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (15.2% per year) is above the savings rate (2.2%).
Earnings vs Market: AMAT's earnings (15.2% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (7.9% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: AMAT's revenue (7.9% 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 (34.4%)
Next Steps
Past Performance
How has Applied Materials performed over the past 5 years?
17.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMAT has high quality earnings.
Growing Profit Margin: AMAT's current net profit margins (18.9%) are lower than last year (21.1%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown by 17.6% 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 (-9.3%) over the past year, making it difficult to compare to the Semiconductor industry average (-10.8%).
Return on Equity
High ROE: AMAT's Return on Equity (32.3%) 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 ($12.7B) exceed its short term liabilities ($4.8B).
Long Term Liabilities: AMAT's short term assets ($12.7B) exceed its long term liabilities ($8.0B).
Debt to Equity History and Analysis
Debt Level: AMAT's debt to equity ratio (75.5%) is considered high.
Reducing Debt: AMAT's debt to equity ratio has increased from 23.3% to 75.5% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (47.5%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (26.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Applied Materials's current dividend yield, its reliability and sustainability?
1.41%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AMAT's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: AMAT's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.6%).
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 (26.8%), 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 (20.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Gary Dickerson (63yo)
6.83yrs
Tenure
US$14,072,395
Compensation
Mr. Gary E. Dickerson has been an Executive Director of Applied Materials, Inc. since 2019. He has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June ...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD14.07M) is about average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.83yrs | US$14.07m | 0.17% $97.9m | |
| Senior VP & CFO | 2.92yrs | US$5.15m | 0.011% $6.2m | |
| Senior VP & GM of New Markets and Service Group | 6.83yrs | US$4.98m | 0.035% $20.2m | |
| Senior Vice President of Semiconductor Products Group | 2.67yrs | US$3.90m | 0.026% $15.1m | |
| Senior Vice President of Engineering | 5.08yrs | US$3.37m | 0.028% $15.9m | |
| Corporate VP | 6.83yrs | no data | 0.0063% $3.6m | |
| Senior VP & CTO | 9.5yrs | US$3.44m | 0.012% $7.0m | |
| Group VP & Chief Information Officer | 10.5yrs | no data | no data | |
| Vice President of Investor Relations | 11.5yrs | no data | no data | |
| Senior VP | 0.083yr | no data | no data |
6.8yrs
Average Tenure
58yo
Average Age
Experienced Management: AMAT's management team is seasoned and experienced (6.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.83yrs | US$14.07m | 0.17% $97.9m | |
| Independent Director | 4.67yrs | US$312.62k | 0.0018% $1.0m | |
| Independent Director | 13yrs | US$324.62k | 0.016% $9.2m | |
| Independent Director | 4yrs | US$344.12k | 0.0022% $1.3m | |
| Chairman Emeritus | 11.33yrs | US$454.23k | no data | |
| Independent Director | 12.08yrs | US$337.87k | 0.0077% $4.4m | |
| Independent Director | 2.5yrs | US$331.12k | 0.0011% $642.5k | |
| Independent Chairman of the Board | 3.33yrs | US$476.62k | 0.0071% $4.1m | |
| Independent Director | 4.58yrs | US$345.12k | 0.00027% $154.9k | |
| Independent Director | 11.83yrs | US$312.62k | 0.00028% $160.6k |
5.8yrs
Average Tenure
63.5yo
Average Age
Experienced Board: AMAT's board of directors are considered experienced (5.8 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$57.362b
- Shares outstanding: 916.48m
- Website: https://www.appliedmaterials.com
Number of Employees
Location
- Applied Materials, Inc.
- 3050 Bowers Avenue
- PO Box 58039
- Santa Clara
- California
- 95052
- 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/12 23:51 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/04/26 |
| 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.