APPLIED MATERIALS INC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. APPLIED MATERIALS INC has strong liquidity. Currently, the Quick Ratio is 1.71 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.
During the same period, stockholders' equity ("net worth") has increased by 11.48% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||2264.0||1988.0|
|Net Income ($mil)||290.0||183.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||3162.0||1891.0|
|Total Assets ($mil)||13174.0||12043.0|
|Total Debt ($mil)||1947.0||1946.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||42.36||44.72|
|Return on Assets||8.39||2.12|
|Return on Equity||13.99||3.61|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||1218.39||1204.0|
|Div / share||0.1||0.1|
|Book value / share||6.49||5.89|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.3442518E7||1.3289318E7|
BUY. The current P/E ratio indicates a discount compared to an average of 28.45 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.78. To use another comparison, its price-to-book ratio of 3.49 indicates a premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.19. 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 25.42||Peers 28.45||AMAT 15.31||Peers 13.65|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
AMAT is trading at a discount to 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 14.23||Peers 18.19||AMAT 0.53||Peers 0.69|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AMAT is trading at a valuation on par with 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 discount to its peers.
|AMAT 3.49||Peers 4.19||AMAT 323.80||Peers 52.13|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AMAT is expected to have an earnings growth rate that significantly exceeds its peers.
|AMAT 3.04||Peers 3.98||AMAT 20.81||Peers 15.34|
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 industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AMAT has a sales growth rate that significantly exceeds its peers.
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