Industrial AutomationDetectors, Sensors and MemsElectronicsManufacturingSemiconductor
Description
Applied Materials, Inc. provides materials engineering solutions used to produce virtually every semiconductor in the world. Semiconductors provide the foundation for advances in technology that are reshaping the global economy, including artificial…
Analysis
Middle-of-the-road
Applied Materials, Inc. sits in the middle of our grid: average quality, average price, no obvious signal in either direction. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 69.3×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 23% a year, against analyst forecasts of 17%. The gap between price and consensus is worth watching: demanding expectations.
Growth is moderate; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator.
Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202341
89
2023202420252026
All-time high
92
Jan 2024
All-time low
41
Apr 2023
Average rank
67
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
41
35
40
50
Price/Earnings
55
74
67
67
Price/Book
31
22
14
22
Dividend Yield
81
85
87
89
Value (overall)
65
75
79
81
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.