NasdaqGS:AMAT

Stock Analysis Report

Executive Summary

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

-0.8%

AMAT

-2.5%

US Semiconductor

-0.6%

US Market


1 Year Return

28.6%

AMAT

7.5%

US Semiconductor

0.6%

US Market

AMAT outperformed the Semiconductor industry which returned 7.5% over the past year.

AMAT outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

AMATIndustryMarket
7 Day-0.8%-2.5%-0.6%
30 Day8.4%3.2%2.2%
90 Day18.6%10.1%1.1%
1 Year31.2%28.6%9.6%7.5%2.9%0.6%
3 Year79.4%71.8%79.9%69.3%44.6%35.2%
5 Year154.3%134.4%119.3%97.0%61.9%44.2%

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 weeks ago | Simply Wall St

This Insider Has Just Sold Shares In Applied Materials, Inc. (NASDAQ:AMAT)

Valuation

Is Applied Materials undervalued based on future cash flows and its price relative to the stock market?

15.94x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Applied Materials's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Applied Materials's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Applied Materials is good value based on earnings compared to the US Semiconductor industry average.

Applied Materials is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Applied Materials is poor value based on expected growth next year.


Price Based on Value of Assets

Applied Materials is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Applied Materials expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Applied Materials's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

Applied Materials's earnings are expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).

Applied Materials's revenue growth is expected to exceed the United States of America market average.

Applied Materials's earnings growth is expected to exceed the United States of America market average.

Applied Materials's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Applied Materials is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Applied Materials performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Applied Materials has delivered over 20% year on year earnings growth in the past 5 years.

Applied Materials's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Applied Materials's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

Applied Materials has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Applied Materials used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Applied Materials has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Applied Materials's financial position?


Financial Position Analysis

Applied Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Applied Materials's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Applied Materials's level of debt (65.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.3% vs 65.5% today).

Debt is well covered by operating cash flow (65.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.73%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Applied Materials before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Applied Materials's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Applied Materials's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).


Next Steps

Management

What is the CEO of Applied Materials's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Gary Dickerson (62yo)

6yrs

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

Gary's remuneration is about average for companies of similar size in United States of America.

Gary's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

The average tenure for the Applied Materials management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

63yo

Average Age

The tenure for the Applied Materials board of directors is about average.


Insider Trading

Applied Materials individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,297,21409 Sep 19
Dennis Powell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,218
Max PriceUS$51.44
SellUS$138,00030 Aug 19
Stephen Forrest
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$46.00
SellUS$1,067,50005 Apr 19
Steve Ghanayem
EntityIndividual
Role
Senior Key Executive
Senior Vice President of New Markets & Alliances Group
Shares25,000
Max PriceUS$42.70
SellUS$84,90005 Apr 19
Stephen Forrest
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$42.45
SellUS$5,834,77623 Mar 19
Omkaram Nalamasu
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares143,255
Max PriceUS$40.73

Ownership Breakdown


Management Team

  • Gary Dickerson (62yo)

    President

    • Tenure: 6yrs
    • Compensation: US$14.06m
  • Gino Addiego (60yo)

    Senior Vice President of Engineering

    • Tenure: 4.3yrs
    • Compensation: US$3.37m
  • Mike Sullivan

    Vice President of Investor Relations

    • Tenure: 10.7yrs
  • Steve Ghanayem (53yo)

    Senior Vice President of New Markets & Alliances Group

    • Tenure: 1.8yrs
    • Compensation: US$5.78m
  • Jay Kerley

    Group VP & Chief Information Officer

    • Tenure: 9.7yrs
  • Dan Durn (53yo)

    Senior VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$6.67m
  • Om Nalamasu (61yo)

    Senior VP & CTO

    • Tenure: 8.7yrs
    • Compensation: US$3.44m
  • Ali Salehpour (58yo)

    Senior Vice President of Services

    • Tenure: 6yrs
    • Compensation: US$4.81m
  • Charles Read (53yo)

    Corporate VP

    • Tenure: 6yrs
  • Prabu Raja (56yo)

    Senior Vice President of Semiconductor Products Group

    • Tenure: 1.8yrs
    • Compensation: US$5.87m

Board Members

  • Aart de Geus (65yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$316.54k
  • Judy Bruner (60yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$342.54k
  • Cy Morgan (81yo)

    Chairman Emeritus

    • Tenure: 10.5yrs
    • Compensation: US$454.23k
  • Gary Dickerson (62yo)

    President

    • Tenure: 6yrs
    • Compensation: US$14.06m
  • Stephen Forrest (69yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$329.56k
  • Dennis Powell (71yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$354.04k
  • Scott McGregor (63yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$325.58k
  • Tom Iannotti (63yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: US$480.29k
  • Adrianna Ma (45yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$334.04k
  • Alexander Karsner (52yo)

    Independent Director

    • Tenure: 11yrs
    • 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$47.074b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMATNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
AMAT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
AP2DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
4336SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon StockHKHKDDec 1972
AP2XTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1972
AMATWBAG (Wiener Boerse AG)YesCommon StockATEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:31
End of Day Share Price2019/09/20 00:00
Earnings2019/07/28
Annual Earnings2018/10/28


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.