Applied Materials Inc

Find Ratings Reports
AMAT : NASDAQ : Technology
$41.12 -1.6 | -3.7%
Today's Range: 41.21 - 42.46
Avg. Daily Volume: 9726800.0
06/29/17 - 12:55 PM ET

Financial Analysis


APPLIED MATERIALS INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. APPLIED MATERIALS INC is extremely liquid. Currently, the Quick Ratio is 2.23 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.08% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)3546.02450.0
EBITDA ($mil)1044.0520.0
EBIT ($mil)941.0424.0
Net Income ($mil)824.0320.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)6744.02640.0
Total Assets ($mil)18240.013075.0
Total Debt ($mil)5502.03343.0
Equity ($mil)8212.06565.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin47.9144.65
EBITDA Margin29.4421.22
Operating Margin26.5417.31
Sales Turnover0.710.73
Return on Assets14.489.72
Return on Equity32.1719.36
Debt Q2 FY17 Q2 FY16
Current Ratio2.932.58
Debt/Capital0.40.34
Interest Expense44.037.0
Interest Coverage21.3911.46


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1074.631089.14
Div / share0.10.1
EPS0.760.29
Book value / share7.646.03
Institutional Own % n/a n/a
Avg Daily Volume9340644.09188341.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.56 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 5.67 indicates a significant premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 5.29. 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 17.84 Peers 27.56   AMAT 14.01 Peers 18.89

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMAT 13.25 Peers 22.40   AMAT 0.18 Peers 1.23

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 significant 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMAT 5.67 Peers 5.29   AMAT 122.93 Peers 14.91

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 3.60 Peers 5.19   AMAT 35.30 Peers 24.62

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 significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades