AMAT Stock Overview
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
No risks detected for AMAT from our risk checks.
Applied Materials Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$109.93|
|52 Week High||US$167.06|
|52 Week Low||US$101.33|
|1 Month Change||-2.54%|
|3 Month Change||-15.61%|
|1 Year Change||-18.32%|
|3 Year Change||178.30%|
|5 Year Change||141.60%|
|Change since IPO||23,953.07%|
Recent News & Updates
We Think Applied Materials (NASDAQ:AMAT) Can Manage Its Debt With Ease
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Applied Materials Stock: The Sell-Off Might Not Be Over
Applied Materials will post its FQ2 earnings report on May 19. Semi investors have become skittish over macro concerns and a potential industry downturn. Despite its highly robust FCF yields, AMAT stock has fallen 30% from its January highs. Therefore, we believe that the market has been digesting the industry's massive 2020 surge. Our price action analysis suggests a massive bull trap occurred in January 2022. Moreover, a series of critical resistance zones have formed. We revise our rating from Buy to Hold, given AMAT's weaker technical outlook, impacting its risk/reward profile.
|AMAT||US Semiconductor||US Market|
Return vs Industry: AMAT underperformed the US Semiconductor industry which returned -1.9% over the past year.
Return vs Market: AMAT underperformed the US Market which returned -12.9% over the past year.
|AMAT Average Weekly Movement||7.1%|
|Semiconductor Industry Average Movement||8.6%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: AMAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: AMAT's weekly volatility (7%) has been stable over the past year.
About the Company
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.
Applied Materials Fundamentals Summary
|AMAT fundamental statistics|
Is AMAT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AMAT income statement (TTM)|
|Cost of Revenue||US$13.04b|
Last Reported Earnings
May 01, 2022
Next Earnings Date
Aug 18, 2022
|Earnings per share (EPS)||7.65|
|Net Profit Margin||27.20%|
How did AMAT perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Does AMAT pay a reliable dividends?See AMAT dividend history and benchmarks
|Applied Materials dividend dates|
|Ex Dividend Date||May 25 2022|
|Dividend Pay Date||Jun 16 2022|
|Days until Ex dividend||0 days|
|Days until Dividend pay date||22 days|
Does AMAT pay a reliable dividends?See AMAT dividend history and benchmarks
Is Applied Materials undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AMAT ($109.93) is trading below our estimate of fair value ($184.14)
Significantly Below Fair Value: AMAT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AMAT is good value based on its PE Ratio (14.4x) compared to the US Semiconductor industry average (19.8x).
PE vs Market: AMAT is good value based on its PE Ratio (14.4x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: AMAT is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: AMAT is overvalued based on its PB Ratio (8.4x) compared to the US Semiconductor industry average (3.5x).
How is Applied Materials forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMAT's forecast earnings growth (6.7% per year) is above the savings rate (1.9%).
Earnings vs Market: AMAT's earnings (6.7% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMAT's revenue (5.2% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: AMAT's revenue (5.2% 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 (55.6%).
How has Applied Materials performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMAT has high quality earnings.
Growing Profit Margin: AMAT's current net profit margins (27.2%) are higher than last year (22.3%).
Past Earnings Growth Analysis
Earnings Trend: AMAT's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: AMAT's earnings growth over the past year (52.7%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: AMAT earnings growth over the past year (52.7%) underperformed the Semiconductor industry 70.4%.
Return on Equity
High ROE: AMAT's Return on Equity (58.3%) is considered outstanding.
How is Applied Materials's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AMAT's short term assets ($15.2B) exceed its short term liabilities ($6.7B).
Long Term Liabilities: AMAT's short term assets ($15.2B) exceed its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: AMAT's net debt to equity ratio (13.2%) is considered satisfactory.
Reducing Debt: AMAT's debt to equity ratio has reduced from 66.9% to 47.1% over the past 5 years.
Debt Coverage: AMAT's debt is well covered by operating cash flow (108.3%).
Interest Coverage: AMAT's interest payments on its debt are well covered by EBIT (33.1x coverage).
What is Applied Materials's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AMAT's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: AMAT's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: AMAT's dividends per share have been stable in the past 10 years.
Growing Dividend: AMAT's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (13%), AMAT's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (17.6%), AMAT's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Dickerson (64 yo)
Mr. Gary E. Dickerson has been the Chief Executive Officer and President of Applied Materials, Inc. since September 1, 2013 and June 19, 2012 respectively. Mr. Dickerson is responsible for the day-to-day o...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD35.27M) is above average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.
Experienced Management: AMAT's management team is seasoned and experienced (8.7 years average tenure).
Experienced Board: AMAT's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Applied Materials, Inc.'s employee growth, exchange listings and data sources
- Name: Applied Materials, Inc.
- Ticker: AMAT
- Exchange: NasdaqGS
- Founded: 1967
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Implied Market Cap: US$97.112b
- Shares outstanding: 883.39m
- Website: https://www.appliedmaterials.com
Number of Employees
- Applied Materials, Inc.
- 3050 Bowers Avenue
- PO Box 58039
- Santa Clara
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/23 00:00|
|End of Day Share Price||2022/05/23 00:00|
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.