Applied Materials Inc. Stock Hold Recommendation Reiterated (AMAT)
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- Although AMAT's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- 41.60% is the gross profit margin for APPLIED MATERIALS INC which we consider to be strong. Regardless of AMAT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AMAT's net profit margin of -31.28% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, APPLIED MATERIALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 213.2% when compared to the same quarter one year ago, falling from $455.00 million to -$515.00 million.
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