APPLIED MATERIALS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. APPLIED MATERIALS INC is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 11.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||2257.0||2359.0|
|Net Income ($mil)||286.0||348.0|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||3116.0||3087.0|
|Total Assets ($mil)||13326.0||13073.0|
|Total Debt ($mil)||3343.0||1947.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||44.57||44.3|
|Return on Assets||9.86||8.92|
|Return on Equity||18.34||14.45|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||1130.73||1229.0|
|Div / share||0.1||0.1|
|Book value / share||6.34||6.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.1945174E7||1.4471649E7|
BUY. This stock's P/E ratio indicates a discount compared to an average of 20.97 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 23.99. To use another comparison, its price-to-book ratio of 3.28 indicates a premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 3.96. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, APPLIED MATERIALS INC proves to trade at a discount to investment alternatives within the industry.
|AMAT 19.09||Peers 20.97||AMAT 18.31||Peers 15.20|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
AMAT is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AMAT is trading at a premium to its peers.
|AMAT 12.93||Peers 17.98||AMAT 1.07||Peers 2.68|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AMAT is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AMAT trades at a significant discount to its peers.
|AMAT 3.28||Peers 3.96||AMAT 15.95||Peers 28.70|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AMAT is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AMAT is expected to significantly trail its peers on the basis of its earnings growth rate.
|AMAT 2.46||Peers 4.06||AMAT 3.41||Peers 5.29|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AMAT is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AMAT significantly trails its peers on the basis of sales growth
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.