| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
AMAT Overview
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
Applied Materials Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$140.80 |
| 52 Week High | US$54.15 |
| 52 Week Low | US$146.00 |
| Beta | 1.44 |
| 1 Month Change | 10.69% |
| 3 Month Change | 5.83% |
| 1 Year Change | 150.76% |
| 3 Year Change | 255.29% |
| 5 Year Change | 374.71% |
| Change since IPO | 30,707.54% |
Recent News & Updates
Is Now The Time To Put Applied Materials (NASDAQ:AMAT) On Your Watchlist?
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Applied Materials: Capitalizing On The (Secular) Winds Of Change; 25% Upside
AMAT will deliver solid long-term performance, even if there are some bumps and bruises along the way. The stock has good bones. This is not always properly appreciated by all market participants once the cyclical tailwinds die down, leading to share prices being undeservedly punished. There are a number of secular drivers at play, and AMAT is well-positioned to benefit from all of them. Even though there might be better entry points in the next year or two, AMAT is a sound investment that will deliver market-beating returns over the long run.
Shareholder Returns
| AMAT | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | 2.9% | -0.04% | -0.6% |
| 1Y | 150.8% | 55.0% | 33.8% |
Return vs Industry: AMAT exceeded the US Semiconductor industry which returned 55% over the past year.
Return vs Market: AMAT exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| AMAT volatility | |
|---|---|
| AMAT Beta | 1.44 |
| Industry Beta | 1.23 |
| Market Beta | 1 |
Stable Share Price: AMAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AMAT's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1967 | 24,000 | Gary Dickerson | https://www.appliedmaterials.com |
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.
Valuation
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
17.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AMAT ($140.8) is trading below our estimate of fair value ($170.02)
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 (24x) compared to the US Semiconductor industry average (29.6x).
PE vs Market: AMAT is poor value based on its PE Ratio (24x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (10.5x) compared to the US Semiconductor industry average (4.4x).
Future Growth
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (9.3% per year) is above the savings rate (2%).
Earnings vs Market: AMAT's earnings (9.3% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (6.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: AMAT's revenue (6.4% 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 high in 3 years time (39.9%)
Past Performance
How has Applied Materials performed over the past 5 years?
13.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMAT has high quality earnings.
Growing Profit Margin: AMAT's current net profit margins (24.5%) are higher than last year (19.7%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown by 13.2% per year over the past 5 years.
Accelerating Growth: AMAT's earnings growth over the past year (65.1%) exceeds its 5-year average (13.2% per year).
Earnings vs Industry: AMAT earnings growth over the past year (65.1%) underperformed the Semiconductor industry 70.6%.
Return on Equity
High ROE: AMAT's Return on Equity (44%) is considered outstanding.
Financial Health
How is Applied Materials's financial position?
Financial Position Analysis
Short Term Liabilities: AMAT's short term assets ($15.2B) exceed its short term liabilities ($5.1B).
Long Term Liabilities: AMAT's short term assets ($15.2B) exceed its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: AMAT's debt to equity ratio (45.2%) is considered high.
Reducing Debt: AMAT's debt to equity ratio has reduced from 49% to 45.2% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (102.9%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (29.5x coverage).
Balance Sheet
Dividend
What is Applied Materials's current dividend yield, its reliability and sustainability?
0.68%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AMAT's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AMAT's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: AMAT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AMAT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AMAT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AMAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.0yrs
Average management tenure
CEO
Gary Dickerson (64 yo)
8yrs
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 ($USD11.33M).
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 (8 years average tenure).
Board Members
Experienced Board: AMAT's board of directors are considered experienced (5.5 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 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$127.132b
- Shares outstanding: 902.93m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:04 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/08/01 |
| 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.