Applied Materials Inc

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AMAT : NASDAQ : Technology
$31.44 | %
Today's Range: 30.06 - 31.45
Avg. Daily Volume: 1.2696E7
12/02/16 - 4:00 PM ET

Financial Analysis


APPLIED MATERIALS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. APPLIED MATERIALS INC has strong liquidity. Currently, the Quick Ratio is 1.66 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.20% 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 FY16 Q4 FY15
Net Sales ($mil)3297.02368.0
EBITDA ($mil)0.0505.0
EBIT ($mil)785.0409.0
Net Income ($mil)610.0336.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3749.04965.0
Total Assets ($mil)14588.015308.0
Total Debt ($mil)3343.04542.0
Equity ($mil)7217.07613.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin42.4344.3
EBITDA Margin0.021.32
Operating Margin23.8117.27
Sales Turnover0.740.63
Return on Assets11.798.99
Return on Equity23.8418.08
Debt Q4 FY16 Q4 FY15
Current Ratio2.32.44
Debt/Capital0.320.37
Interest Expense38.032.0
Interest Coverage20.6612.78


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1080.891160.0
Div / share0.10.1
EPS0.560.28
Book value / share6.686.56
Institutional Own % n/a n/a
Avg Daily Volume1.3488724E71.2882873E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.84 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 4.60 indicates a significant premium versus the S&P 500 average of 2.79 and a premium versus the industry average of 4.21. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, APPLIED MATERIALS INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMAT 19.70 Peers 30.84   AMAT 13.47 Peers 17.71

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMAT 13.66 Peers 20.16   AMAT NA Peers 3.19

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMAT 4.60 Peers 4.21   AMAT 39.28 Peers 21.82

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMAT 3.07 Peers 4.50   AMAT 12.07 Peers 10.81

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AMAT has a sales growth rate that exceeds its peers.

 

 

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