Applied Materials Inc

Technology
Semiconductors
www.appliedmaterials.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $141.25B
PE 19
Debt $6.26B
Cash $8.38B
EV $139.13B
FCF $6.57B

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$7.45B
EBIT	$8.29B
ROE	40%
ROA	25%
FCF	$6.57B
Equity	$18.84B
Growth Stability	96%
PE	18.96
PEG	0.76
PB	7.5
P/FCF	21.52
P/S	5.26
Price/Cash	0.06
Debt/Equity	0.33
Debt/FCF	0.95
Net Margins	27%
Gross Margins	47%
Op. Margins	31%
Earnings CAGR	20%
Sales Growth YoY	5%
Sales Growth QoQ	2%
Sales CAGR	13%
FCF CAGR	17%
Equity CAGR	10%
Earnings Stability	0.86
Earnings Growth YoY	9%
Earnings Growth QoQ	-1%
Earnings CAGR 5Y	25%

Sales CAGR 5Y	15%
FCF CAGR 5Y	23%
Equity CAGR 5Y	17%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	17%
Equity CAGR 3Y	21%
Market Cap	$141.25B
Revenue	$26.85B
Dividend Yield	1%
Payout Ratio	16%
Assets	$33.65B
Total Debt	$6.26B
Cash	$8.38B
Shares Outstanding	824.4M
EV	139.13B
Earnings Score	94%
Moat Score	97%
Safety Score	96%
Final Score	96%
Working Capital	13.44B
Current Ratio	2.86
Gross Profit	$12.73B
Shares Growth 3y	-3%
Equity Growth QoQ	4%
Equity Growth YoY	25%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Applied Materials is the world's largest supplier of semiconductor manufacturing equipment, providing materials engineering solutions to help make nearly every chip in the world. The firm's systems are used in nearly every major process step with the exception of lithography. Key tools include those for chemical and physical vapor deposition, etching, chemical mechanical polishing, wafer- and reticle-inspection, critical dimension measurement, and defect-inspection scanning electron microscopes.

SEC Filings

Direct access to Applied Materials Inc (AMAT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jul 28
- 10-Q Apr 28
- 10-Q Jan 28
2023
- 10-K Oct 29
- 10-Q Jul 30
- 10-Q Apr 30
- 10-Q Jan 29
2022
- 10-K Oct 30
- 10-Q Jul 31
- 10-Q May 01
- 10-Q Jan 30

Sector Comparison

How does Applied Materials Inc compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Applied Materials Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 20%

Stability 86%

loading chart...

Applied Materials Inc Discounted Cash Flow

Fully customizable DCF calculator online for Applied Materials Inc .

Years

Calculation mode

= $215B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.6B	$7.7B	$9B	$11B	$12B	$14B	$17B	$20B	$23B	$27B	$32B	$315B
DCF		$7B	$7.4B	$7.9B	$8.4B	$8.9B	$9.5B	$10B	$11B	$11B	$12B	$122B
Value	$215B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Net Margins	14%	16%	24%	19%	19%	21%	26%	25%	26%	27%
ROA	-	15%	20%	28%	18%	20%	27%	29%	25%	25%
ROE	-	24%	37%	48%	33%	34%	48%	54%	42%	40%

Good Net Margins (27.05%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Debt over FCF	-	1.51	1.64	1.71	2.11	1.61	1.14	1.18	0.73	0.95
Debt over Equity	0.6	0.46	0.57	0.79	0.72	0.52	0.45	0.45	0.34	0.33
Growth Stability	-	-	-	100%	96%	100%	100%	100%	100%	96%

Good Debt/FCF ratio (0.95)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.33)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (96%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	CAGR 5Y
Revenue YoY growth	-	12%	34%	19%	-15%	18%	34%	12%	3%	15%
Earnings YoY growth	-	25%	100%	-4%	-18%	34%	63%	11%	5%	25%
Equity YoY growth	-	-5%	30%	-27%	20%	29%	16%	-0%	34%	17%
FCF YoY growth	-	133%	47%	-3%	-11%	21%	41%	-3%	65%	23%