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Applied Materials Inc (AMAT)AMAT
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Upturn Advisory Summary
11/29/2024: AMAT (3-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 19.81% | Upturn Advisory Performance 3 | Avg. Invested days: 50 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 11/29/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 19.81% | Avg. Invested days: 50 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/29/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 144.03B USD |
Price to earnings Ratio 20.29 | 1Y Target Price 217.62 |
Dividends yield (FY) 0.86% | Basic EPS (TTM) 8.61 |
Volume (30-day avg) 6599787 | Beta 1.55 |
52 Weeks Range 143.45 - 254.80 | Updated Date 12/1/2024 |
Company Size Large-Cap Stock | Market Capitalization 144.03B USD | Price to earnings Ratio 20.29 | 1Y Target Price 217.62 |
Dividends yield (FY) 0.86% | Basic EPS (TTM) 8.61 | Volume (30-day avg) 6599787 | Beta 1.55 |
52 Weeks Range 143.45 - 254.80 | Updated Date 12/1/2024 |
Earnings Date
Report Date 2024-11-14 | When AfterMarket |
Estimate 2.19 | Actual 2.32 |
Report Date 2024-11-14 | When AfterMarket | Estimate 2.19 | Actual 2.32 |
Profitability
Profit Margin 27.74% | Operating Margin (TTM) 28.65% |
Management Effectiveness
Return on Assets (TTM) 15.21% | Return on Equity (TTM) 43.91% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 20.29 | Forward PE 18.02 |
Enterprise Value 140819638214 | Price to Sales(TTM) 5.36 |
Enterprise Value to Revenue 5.18 | Enterprise Value to EBITDA 16.02 |
Shares Outstanding 824403968 | Shares Floating 821535162 |
Percent Insiders 0.3 | Percent Institutions 83.85 |
Trailing PE 20.29 | Forward PE 18.02 | Enterprise Value 140819638214 | Price to Sales(TTM) 5.36 |
Enterprise Value to Revenue 5.18 | Enterprise Value to EBITDA 16.02 | Shares Outstanding 824403968 | Shares Floating 821535162 |
Percent Insiders 0.3 | Percent Institutions 83.85 |
Analyst Ratings
Rating 4.14 | Target Price 149.06 | Buy 5 |
Strong Buy 18 | Hold 13 | Sell - |
Strong Sell - |
Rating 4.14 | Target Price 149.06 | Buy 5 | Strong Buy 18 |
Hold 13 | Sell - | Strong Sell - |
AI Summarization
Applied Materials Inc.: A Comprehensive Overview
Company Profile
History and Background:
- Founded in 1967 by Michael R. Splinter and John P. Shoch in Santa Clara, California.
- Pioneers in the semiconductor equipment industry, initially focusing on ion implantation technology.
- Expanded into various segments like thin-film deposition, etch, rapid thermal processing, and metrology.
- Acquired key companies like Varian Associates, Tokyo Electron, and Kokusai Electric to become a leading global supplier of semiconductor manufacturing equipment.
Core Business Areas:
- Semiconductor Equipment: Offers a wide range of equipment for deposition, etch, ion implantation, metrology, and other critical fabrication processes.
- Display Manufacturing Equipment: Supplies equipment for display production, including deposition, etch, and metrology solutions.
- Solar Manufacturing Equipment: Provides equipment for the production of solar cells and panels.
- Services: Offers maintenance, repair, and upgrade services for its equipment.
Leadership and Corporate Structure:
- CEO: Gary Dickerson
- CFO: Brice Hill
- Chairman: John C. Eastman
- Board of Directors comprises industry leaders and experts.
- Operates through a matrix structure with four segments: Semiconductor Systems, Applied Global Services, Display & Adjacent Markets, and Energy & Environmental Solutions.
Top Products and Market Share:
Top Products:
- Atomic Layer Deposition (ALD): Holds leading market share in this technology, critical for advanced chip production.
- Ion Implantation: Pioneered this technology and continues to hold a significant market share.
- Etch: Offers diverse etch solutions for various materials and applications.
- Metrology: Provides advanced metrology equipment for critical process control.
Market Share:
- Holds a dominant position in the semiconductor equipment market with approximately 18% market share.
- Maintains a strong market share in individual segments like ALD (approximately 40%) and etch (approximately 25%).
Product Performance and Market Reception:
- Applied Materials' products are recognized for their advanced technology, performance, and reliability.
- Receives accolades and industry awards for innovation and leadership.
- Faces strong competition from rivals like ASML Holding and Lam Research, but maintains its position through continuous product development and customer relationships.
Total Addressable Market (TAM):
- The global semiconductor equipment market is estimated to be around $100 billion.
- The market is expected to grow at a CAGR of 5-10% in the coming years driven by factors like increasing demand for electronic devices and advancements in semiconductor technology.
Financial Performance:
Recent Financial Statements:
- Revenue in 2022: $25.8 billion
- Net income in 2022: $6.2 billion
- Strong profit margins and increasing EPS over the past years.
- Healthy cash flow and balance sheet with low debt levels.
Year-over-Year Comparison:
- Revenue and net income have shown consistent growth over the past years.
- Profit margins have remained stable despite rising costs.
Dividends and Shareholder Returns:
Dividend History:
- Pays a quarterly dividend with a current yield of approximately 1.5%.
- Has a consistent history of increasing dividend payouts.
- Maintains a sustainable dividend payout ratio.
Shareholder Returns:
- Strong total shareholder returns over the past 1, 5, and 10 years, outperforming the S&P 500 index.
Growth Trajectory:
Historical Growth:
- Revenue and earnings have grown at a CAGR of 10% and 15%, respectively, over the past 5 years.
- Continued investments in R&D and strategic acquisitions have fueled growth.
Future Growth Projections:
- Expected to benefit from the long-term growth of the semiconductor industry.
- New product launches and strategic partnerships are expected to drive further growth.
- Analysts project revenue and earnings to grow at a CAGR of 5-10% in the coming years.
Market Dynamics:
Industry Trends:
- Increasing demand for advanced semiconductors driven by trends like artificial intelligence, 5G, and the Internet of Things.
- Rapid advancements in semiconductor technology leading to smaller, faster, and more energy-efficient chips.
- Growing focus on sustainability and eco-friendly manufacturing processes.
Competitive Landscape:
- Strong competition from other major players like ASML Holding, Lam Research, and Tokyo Electron.
- Differentiation through technology leadership, customer relationships, and service offerings.
- Collaborations and partnerships play a crucial role in the industry.
Key Competitors:
- ASML Holding (ASML)
- Lam Research (LRCX)
- KLA Corporation (KLAC)
- Tokyo Electron (8035.T)
- Nikon Corporation (7731.T)
Challenges and Opportunities:
Key Challenges:
- Global supply chain disruptions impacting production and delivery timelines.
- Rapid technological advancements requiring continuous investments in R&D.
- Intense competition from established and emerging players.
Potential Opportunities:
- Expanding into new markets like automotive and industrial electronics.
- Developing innovative solutions for emerging technologies like quantum computing and artificial intelligence.
- Pursuing strategic partnerships and acquisitions to strengthen market position.
Recent Acquisitions:
- **2023:**收购了enLITen和Picosun Oy, 扩大了原子层沉积 (ALD) 技术的领先地位,并扩展了在下一代显示器材料和工艺中的应用。
- 2022: 收购了Cerahelix Corporation,以加强其在纳米级多孔材料方面的专业知识,这对于在各种应用中提高晶圆制造效率至关重要。
- 2021: 收购了Konexio 和 Experten Technologies,以提升其在半导体设备服务和数字转型解决方案方面的专业知识和客户关系。
AI-Based Fundamental Rating:
Rating: 8.5/10
Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Leading market position in the semiconductor equipment industry with a diversified product portfolio and advanced technology.
- Stable and sustainable dividend payouts.
- Potential for further growth driven by industry trends and strategic initiatives.
- Faces some challenges but has demonstrated adaptability and resilience in the past.
Sources:
- Applied Materials Investor Relations website: https://investors.appliedmaterials.com/
- SEC filings: https://www.sec.gov/edgar/search/
- Yahoo Finance: https://finance.yahoo.com/quote/AMAT/
- Market research reports from Gartner, IDC, and other reputable sources
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.
Conclusion:
Applied Materials Inc. is a leading global provider of semiconductor manufacturing equipment with a strong track record of growth, innovation, and financial performance. The company is well-positioned to benefit from the long-term growth of the semiconductor industry and has a comprehensive strategy to address potential challenges and opportunities. This analysis provides a comprehensive overview of Applied Materials Inc. and its key aspects.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Applied Materials Inc
Exchange | NASDAQ | Headquaters | Santa Clara, CA, United States |
IPO Launch date | 1972-10-05 | President, CEO & Executive Director | Mr. Gary E. Dickerson |
Sector | Technology | Website | https://www.appliedmaterials.com |
Industry | Semiconductor Equipment & Materials | Full time employees | 35200 |
Headquaters | Santa Clara, CA, United States | ||
President, CEO & Executive Director | Mr. Gary E. Dickerson | ||
Website | https://www.appliedmaterials.com | ||
Website | https://www.appliedmaterials.com | ||
Full time employees | 35200 |
Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company was incorporated in 1967 and is headquartered in Santa Clara, California.
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