Applied Materials Inc.
Find Ratings ReportsAPPLIED MATERIALS INC's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. APPLIED MATERIALS INC has strong liquidity. Currently, the Quick Ratio is 1.77 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 29.87% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 6707.0 | 6739.0 |
EBITDA ($mil) | 2061.0 | 2096.0 |
EBIT ($mil) | 1970.0 | 1976.0 |
Net Income ($mil) | 2019.0 | 1717.0 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 7492.0 | 4047.0 |
Total Assets ($mil) | 31540.0 | 27959.0 |
Total Debt ($mil) | 5989.0 | 6118.0 |
Equity ($mil) | 17429.0 | 13420.0 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 49.13 | 48.45 |
EBITDA Margin | 30.72 | 31.1 |
Operating Margin | 29.37 | 29.32 |
Sales Turnover | 0.84 | 0.94 |
Return on Assets | 22.69 | 23.06 |
Return on Equity | 41.07 | 48.06 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 2.71 | 2.31 |
Debt/Capital | 0.26 | 0.31 |
Interest Expense | 59.0 | 59.0 |
Interest Coverage | 33.39 | 33.49 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 830.9 | 845.12 |
Div / share | 0.32 | 0.26 |
EPS | 2.41 | 2.02 |
Book value / share | 20.98 | 15.88 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6401189.0 | 5770262.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 9.57 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, APPLIED MATERIALS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AMAT 23.62 | Peers 34.89 | AMAT 19.02 | Peers 35.56 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AMAT is trading at a significant discount to its peers. |
Discount. 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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AMAT 21.45 | Peers 25.65 | AMAT 35.25 | Peers 5.15 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. AMAT is trading at a valuation on par with its peers. |
Premium. 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 premium to its peers. |
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Price/Book |
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Earnings Growth |
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AMAT 9.57 | Peers 15.81 | AMAT 13.94 | Peers 20.44 | |||||||||||||||||||||
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 significant 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. |
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Price/Sales |
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Sales Growth |
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AMAT 6.30 | Peers 8.34 | AMAT 0.88 | Peers 14.92 | |||||||||||||||||||||
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 discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AMAT significantly trails its peers on the basis of sales growth. |
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