| Company name | Applied Materials, Inc. |
| Stock ticker | AMAT |
| Live stock price | [stckqut]AMAT[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Fair |
| Price growth | Fair |
| R&D growth | Poor |
| Income growth | Good |
| Assets growth | Fair |
| Return on Assets growth | Good |
| Income / Rev growth | Good |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $86.21 |
| Target stock price (averages with growth) | $148.24 |
| Target stock price (averages with no growth) | $85.09 |
| Target stock price (manual assumptions) | $77.62 |
The following company description is from Reuters: https://finance.yahoo.com/quote/amat/profile?p=amat
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It 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 and nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective 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, as well as equipment for flexible substrates. The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Applied Materials, Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good, but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Applied Materials, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $55.79
- Growth: 0.2
- Current EPS (TTM): $3.14
- P/E: 16
- Future EPS Calc: $7.81
- Future Stock Price Calc: $125.01
- Target stock price: $77.62
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I hope that this makes you a Confident Investor.