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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.18
AMAT's Cash to Debt is ranked higher than
50% of the 1013 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 4.92 vs. AMAT: 1.18 )
AMAT' s 10-Year Cash to Debt Range
Min: 0.48   Max: 16.14
Current: 1.18

0.48
16.14
Equity to Asset 0.59
AMAT's Equity to Asset is ranked higher than
58% of the 1005 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 0.65 vs. AMAT: 0.59 )
AMAT' s 10-Year Equity to Asset Range
Min: 0.56   Max: 0.8
Current: 0.59

0.56
0.8
Interest Coverage 4.55
AMAT's Interest Coverage is ranked lower than
61% of the 571 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 464.62 vs. AMAT: 4.55 )
AMAT' s 10-Year Interest Coverage Range
Min: 4.25   Max: 66.1
Current: 4.55

4.25
66.1
F-Score: 8
Z-Score: 5.41
M-Score: -2.44
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 5.75
AMAT's Operating margin (%) is ranked higher than
73% of the 989 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 2.37 vs. AMAT: 5.75 )
AMAT' s 10-Year Operating margin (%) Range
Min: -7.85   Max: 30.82
Current: 5.75

-7.85
30.82
Net-margin (%) 3.41
AMAT's Net-margin (%) is ranked higher than
69% of the 989 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.59 vs. AMAT: 3.41 )
AMAT' s 10-Year Net-margin (%) Range
Min: -6.09   Max: 21.58
Current: 3.41

-6.09
21.58
ROE (%) 3.61
AMAT's ROE (%) is ranked higher than
67% of the 984 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 2.33 vs. AMAT: 3.61 )
AMAT' s 10-Year ROE (%) Range
Min: -4.3   Max: 29.05
Current: 3.61

-4.3
29.05
ROA (%) 2.13
AMAT's ROA (%) is ranked higher than
67% of the 998 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.20 vs. AMAT: 2.13 )
AMAT' s 10-Year ROA (%) Range
Min: -3.19   Max: 19.57
Current: 2.13

-3.19
19.57
ROC (Joel Greenblatt) (%) 20.02
AMAT's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 998 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 4.03 vs. AMAT: 20.02 )
AMAT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -14.99   Max: 109.8
Current: 20.02

-14.99
109.8
Revenue Growth (%) -4.50
AMAT's Revenue Growth (%) is ranked higher than
63% of the 705 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: -0.60 vs. AMAT: -4.50 )
AMAT' s 10-Year Revenue Growth (%) Range
Min: -21.4   Max: 60.4
Current: -4.5

-21.4
60.4
EBITDA Growth (%) -18.00
AMAT's EBITDA Growth (%) is ranked higher than
58% of the 471 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: -4.80 vs. AMAT: -18.00 )
AMAT' s 10-Year EBITDA Growth (%) Range
Min: -59.5   Max: 129.9
Current: -18

-59.5
129.9
EPS Growth (%) -33.10
AMAT's EPS Growth (%) is ranked lower than
53% of the 412 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: -4.00 vs. AMAT: -33.10 )
AMAT' s 10-Year EPS Growth (%) Range
Min: -33.1   Max: 65.9
Current: -33.1

-33.1
65.9
» AMAT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

AMAT Guru Trades in Q2 2013

Manning & Napier Advisors, Inc 133,099 sh (+5.5%)
John Hussman 5,000 sh (unchged)
Bill Nygren 7,160,000 sh (unchged)
Brian Rogers 12,594,500 sh (unchged)
Martin Whitman 4,689,207 sh (unchged)
Richard Snow Sold Out
Joel Greenblatt Sold Out
Pioneer Investments Sold Out
Chris Davis 388,153 sh (-0.14%)
NWQ Managers 7,909,356 sh (-9.33%)
Arnold Van Den Berg 1,880,877 sh (-9.66%)
Ray Dalio 450,999 sh (-10.48%)
Third Avenue Management 8,858,678 sh (-12.46%)
Ruane Cunniff 13,692 sh (-12.88%)
PRIMECAP Management 7,219,055 sh (-21%)
Ken Fisher 12,048 sh (-37.44%)
Steven Cohen 354,416 sh (-47.8%)
Louis Moore Bacon 500,000 sh (-74.36%)
Charles de Vaulx 1,592,443 sh (-83.51%)
» More
Q3 2013

AMAT Guru Trades in Q3 2013

Jeremy Grantham 20,600 sh (New)
Pioneer Investments 288,045 sh (New)
Jim Simons 461,548 sh (New)
John Hussman 1,000,000 sh (+19900%)
Steven Cohen 3,492,918 sh (+885.54%)
Ruane Cunniff 13,692 sh (unchged)
Brian Rogers 12,594,500 sh (unchged)
Bill Nygren 7,160,000 sh (unchged)
Manning & Napier Advisors, Inc Sold Out
Louis Moore Bacon Sold Out
Ken Fisher Sold Out
Charles de Vaulx Sold Out
Third Avenue Management Sold Out
Arnold Van Den Berg Sold Out
Ray Dalio 446,699 sh (-0.95%)
PRIMECAP Management 7,072,955 sh (-2.02%)
Chris Davis 298,319 sh (-23.14%)
NWQ Managers 5,185,310 sh (-34.44%)
Martin Whitman 4,339,207 sh (-7.46%)
» More
Q4 2013

AMAT Guru Trades in Q4 2013

Jim Simons 2,481,848 sh (+437.72%)
Jeremy Grantham 72,629 sh (+252.57%)
Chris Davis 305,116 sh (+2.28%)
Steven Cohen 3,521,310 sh (+0.81%)
Bill Nygren 7,160,000 sh (unchged)
Brian Rogers 12,594,500 sh (unchged)
Ruane Cunniff 13,692 sh (unchged)
John Hussman Sold Out
Martin Whitman Sold Out
PRIMECAP Management 7,016,423 sh (-0.8%)
Pioneer Investments 275,864 sh (-4.23%)
NWQ Managers 4,882,355 sh (-5.84%)
Ray Dalio 302,799 sh (-32.21%)
» More
Q1 2014

AMAT Guru Trades in Q1 2014

Brian Rogers 12,594,500 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with AMAT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2013-12-31 Sold Out 0.96%$16.5 - $18.1 $ 18.999%0
Ray Dalio 2013-12-31 Reduce -32.21%0.02%$16.5 - $18.1 $ 18.999%302799
Martin Whitman 2013-10-31 Sold Out 3.1%$14.965 - $18.1 $ 18.9915%0
Arnold Van Den Berg 2013-09-30 Sold Out 2.9%$14.82 - $17.84 $ 18.9919%0
John Hussman 2013-09-30 Add 19900%0.96%$14.82 - $17.84 $ 18.9919%1000000
Martin Whitman 2013-07-31 Reduce -7.46%0.22%$14.5 - $16.69 $ 18.9924%4339207
Arnold Van Den Berg 2013-06-30 Reduce -9.66%0.27%$12.92 - $15.97 $ 18.9931%1880877
PRIMECAP Management 2013-06-30 Reduce -21%0.04%$12.92 - $15.97 $ 18.9931%7219055
Joel Greenblatt 2013-06-30 Sold Out 0.01%$12.92 - $15.97 $ 18.9931%0
PRIMECAP Management 2013-03-31 Reduce -41.83%0.12%$11.44 - $13.89 $ 18.9946%9137855
James Barrow 2013-03-31 Sold Out 0.09%$11.44 - $13.89 $ 18.9946%0
David Dreman 2013-03-31 Sold Out 0.09%$11.44 - $13.89 $ 18.9946%0
Ray Dalio 2013-03-31 New Buy0.06%$11.44 - $13.89 $ 18.9946%503799
John Burbank 2013-03-31 Sold Out 0.01%$11.44 - $13.89 $ 18.9946%0
Joel Greenblatt 2013-03-31 New Buy0.01%$11.44 - $13.89 $ 18.9946%15986
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Applied Materials, Inc.

Third Avenue Managements Comments on Applied Materials - Oct 02, 2012

We also added to our position in Applied Materials Common (AMAT), which was discussed in last quarter's letter. The share price has been weak of late owing to a deteriorating 2012 earnings outlook. Demand for semiconductor capital equipment appears to have been negatively impacted by the slowing global economy. Nevertheless, Applied Materials' financial and market positions remain strong, and the shares were purchased at an attractive price of about nine times 2011 earnings.

From Third Avenue's third-quarter letter, by Ian Lapey, portfolio manager.
Check out Third Avenue Management latest stock trades

Third Avenue Management Comments on Applied Materials - Jun 28, 2012

From Third Avenue Management's second-quarter letter:

In March, I attended the Applied Materials (AMAT) investor meeting in New York along with my colleague Yang Lie, who has followed Applied Materials and other technology stocks since joining the firm in 1996. Applied Materials' Chairman and CEO Mike Splinter, along with several other members of the senior management team, presented a compelling long-term investment case for the company, which is the leading global provider of semiconductor capital equipment, driven by increasing consumer demand for mobility. While it is difficult to predict who will produce the next top-selling consumer electronics gadget (although the odds appear to favor Apple at the moment), it seems to be a safe bet that the demand for equipment and services provided by Applied Materials should increase, given its market dominance in many areas of semiconductor equipment, as semiconductor chips become more ubiquitous and more complex, necessitating a greater number and more advanced tools.

This favorable longer-term outlook seems to have been lost on many, as the company's modest reduction in 2012 earnings guidance triggered a 3% decline in the stock price that day and a subsequent 4% decline through quarter end. Specifically, owing primarily to weak demand for solar power capital equipment, the company projected fiscal 2012 earnings of $0.85 to $0.95 per share, compared to the previous Wall Street consensus forecast of $0.96 per share. As a result, we added to our position in Applied Common at very attractive multiples of about 9 and 13 times 2011 and expected 2012 earnings, respectively. Importantly, we believe that earnings are likely to exceed recent peak 2011 earnings of $1.30 per share in the next few years, driven by the favorable dynamics noted above, as well as an increase in addressable market from the recent acquisition of Varian Semiconductor. Although Applied Materials paid a rich price for Varian ($4.2 billion; 18 times earnings), the transaction was financed with excess cash and very low cost debt and should be accretive next year. Varian is the market leader in the ion implant market, a critical step in semiconductor chip manufacturing, which enables the manufacturing of high performance chips, e.g., for applications requiring faster speeds and longer battery lives. Even after the Varian acquisition, Applied Materials has a very strong financial position, with about $3 billion of cash and $2 billion of debt consisting of senior unsecured notes due from 2016 to 2041 at rates ranging from 2.7% to 7.1%. Applied Common accounted for 1.3% of the Fund's net assets at quarter end, and we have been increasing our position on further share price weakness this quarter.

Check out Martin Whitman latest stock trades

Top Ranked Articles about Applied Materials, Inc.

Third Avenue Management Comments on Applied Materials and Tokyo Electron
In September, Applied Materials (AMAT) announced plans to merge with Tokyo Electron ("TEL") (TSE:2760). Both Applied Materials and TEL are well respected in the semiconductor equipment industry. We initially invested in Applied during a cyclical downturn in the industry, yet with the belief that growth prospects were bright over the longer term due to continuing technology transitions as semiconductor chips get smaller and more complex and the potential for Applied Materials, specifically, to gain further market share. The transaction is structured such that Applied Materials shareholders will own 68% of the new company with TEL shareholders getting the remainder. The benefits of the merger for Applied shareholders include expanded market opportunities (particularly in processes such as etch and selective materials removal) and more efficient research and development. The companies estimate potential synergies totaling $250 million at end of the first year and $500 million by the end of the third year, driven from enhanced efficiencies in the supply chain, manufacturing, IT and corporate overhead. While we are optimistic about consolidation in the industry longer term, Applied's stock price increased on news of the transaction to a level where the valuation was not as attractive as other opportunities and we exited the position, locking in our 25% internal rate of return on our investment.From Third Avenue Management's fourth quarter 2013 commentary. Read more...
HAR, AMAT, KEY, FCE.A - Third Avenue Management Sells in Review
The updated portfolio of Third Avenue Management, founded by value investor and Guru Martin Whitman, includes 163 stocks, 24 of them new, a total value at $5.17 billion, and a quarter-over-quarter turnover of 9%. The portfolio is currently weighted with top three sectors: financial services at 18.1%, basic materials at 16.1% and real estate at 15.1%. The stocks bought by Third Avenue Management in the past 12 months have an average return of 11.65%. Read more...
Century Management’s Three Sell Outs
Arnold Van Den Berg of Century Management has a portfolio of 64 stocks, seven of them new, with a total value of $1.01 billion, and a quarter over quarter turnover of 5%. The portfolio is currently weighted with top three sectors: industrials at 33.3%, technology at 20% and financial services at 16.3%. Guru Van Den Berg has averaged a return of 8.61% over 12 months. Read more...
Deep Value Investor James Barrow Unloads Six
In the recent portfolio update of Guru James Barrow, executive director of Barrow, Hanley, Mewhinney & Strauss of Dallas, Texas, GuruFocus research shows 159 stocks, seven of them new, with a total value of $5.55 billion and a quarter-over-quarter turnover of 6%. GuruFocus research also shows that James Barrow sold out large holdings in six companies in the first quarter of 2013. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 48.60
AMAT's P/E(ttm) is ranked lower than
67% of the 578 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 24.80 vs. AMAT: 48.60 )
AMAT' s 10-Year P/E(ttm) Range
Min: 6.99   Max: 211.56
Current: 48.6

6.99
211.56
P/B 3.00
AMAT's P/B is ranked lower than
68% of the 982 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.79 vs. AMAT: 3.00 )
AMAT' s 10-Year P/B Range
Min: 1.47   Max: 5.26
Current: 3

1.47
5.26
P/S 2.90
AMAT's P/S is ranked lower than
63% of the 1019 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.65 vs. AMAT: 2.90 )
AMAT' s 10-Year P/S Range
Min: 1.23   Max: 9.35
Current: 2.9

1.23
9.35
PFCF 29.50
AMAT's PFCF is ranked lower than
62% of the 525 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 20.00 vs. AMAT: 29.50 )
AMAT' s 10-Year PFCF Range
Min: 6.05   Max: 304.5
Current: 29.5

6.05
304.5
EV-to-EBIT 29.40
AMAT's EV-to-EBIT is ranked lower than
62% of the 698 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 20.80 vs. AMAT: 29.40 )
AMAT' s 10-Year EV-to-EBIT Range
Min: 3.6   Max: 559.4
Current: 29.4

3.6
559.4
Shiller P/E 37.00
AMAT's Shiller P/E is ranked lower than
54% of the 277 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 29.58 vs. AMAT: 37.00 )
AMAT' s 10-Year Shiller P/E Range
Min: 10.84   Max: 61.03
Current: 37

10.84
61.03

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.10
AMAT's Dividend Yield is ranked higher than
72% of the 474 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.59 vs. AMAT: 2.10 )
AMAT' s 10-Year Dividend Yield Range
Min: 0.16   Max: 3.38
Current: 2.1

0.16
3.38
Dividend Payout 1.00
AMAT's Dividend Payout is ranked lower than
75% of the 345 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 0.38 vs. AMAT: 1.00 )
AMAT' s 10-Year Dividend Payout Range
Min: 0.12   Max: 3
Current: 1

0.12
3
Dividend growth (3y) 13.50
AMAT's Dividend growth (3y) is ranked higher than
81% of the 131 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 11.20 vs. AMAT: 13.50 )
AMAT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 58.7
Current: 13.5

0
58.7
Yield on cost (5-Year) 3.82
AMAT's Yield on cost (5-Year) is ranked higher than
83% of the 516 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.79 vs. AMAT: 3.82 )
AMAT' s 10-Year Yield on cost (5-Year) Range
Min: 0.29   Max: 6.15
Current: 3.82

0.29
6.15
Share Buyback Rate 3.30
AMAT's Share Buyback Rate is ranked higher than
95% of the 561 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: -1.50 vs. AMAT: 3.30 )
AMAT' s 10-Year Share Buyback Rate Range
Min: 18.9   Max: -3.9
Current: 3.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 7.90
AMAT's Price/Tangible Book is ranked lower than
80% of the 969 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 2.00 vs. AMAT: 7.90 )
AMAT' s 10-Year Price/Tangible Book Range
Min: 1.91   Max: 15.38
Current: 7.9

1.91
15.38
Price/DCF (Projected) 1.30
AMAT's Price/DCF (Projected) is ranked higher than
82% of the 374 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.50 vs. AMAT: 1.30 )
AMAT' s 10-Year Price/DCF (Projected) Range
Min: 0.56   Max: 9.01
Current: 1.3

0.56
9.01
Price/Median PS Value 1.00
AMAT's Price/Median PS Value is ranked higher than
84% of the 952 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.10 vs. AMAT: 1.00 )
AMAT' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 4.04
Current: 1

0.4
4.04
Price/Graham Number 4.10
AMAT's Price/Graham Number is ranked lower than
73% of the 583 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.60 vs. AMAT: 4.10 )
AMAT' s 10-Year Price/Graham Number Range
Min: 0.74   Max: 16.73
Current: 4.1

0.74
16.73
Earnings Yield (Greenblatt) 3.40
AMAT's Earnings Yield (Greenblatt) is ranked lower than
56% of the 750 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 4.60 vs. AMAT: 3.40 )
AMAT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 27.5
Current: 3.4

0.2
27.5
Forward Rate of Return (Yacktman) 4.57
AMAT's Forward Rate of Return (Yacktman) is ranked higher than
83% of the 572 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 1.20 vs. AMAT: 4.57 )
AMAT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -25.8   Max: 62
Current: 4.57

-25.8
62

Business Description

Industry: Semiconductors » Semiconductor Equipment & Materials
Compare:ASML, TOELY, KLAC, LRCX, IMI » details
Traded in other countries:04336.Hongkong, AP2.Germany
Applied Materials, Inc., was incorporated in 1967. The Company is a Delaware corporation, provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries. The Company operates in four reportable segments: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions. The Company manages its business based upon these segments. The Company's Silicon Systems Group segment develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits. The Company Global Services segment encompasses products and services designed to improve the performance and productivity, and reduce the environmental impact, of the fab operations of semiconductor, LCD and solar PV manufacturers. The Company's products for manufacturing thin film transistor liquid crystal displays (TFT- LCDs) for televisions, personal computers (PCs), tablet PCs, smartphones and other consumer-oriented electronic applications are reported under its Display segment. The Energy and Environmental Solutions segment includes manufacturing systems to produce products for the generation and conservation of energy. To increase the conversion efficiency and yields of solar PV devices and help reduce the cost per watt of solar-generated electricity, The Company offers manufacturing solutions for wafer-based crystalline silicon (c-Si) applications. The Company's manufacturing activities consist mainly of assembly, test and integration of various proprietary and commercial parts, components and subassemblies that are used to manufacture systems. The Company has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including the United States, Europe, Israel, Singapore, Taiwan and other countries in Asia, and assembly of some systems is completed at customer sites. The Company's customers include manufacturers of semiconductor wafers and chips, flat panel liquid crystal displays, solar PV cells and modules, and other electronic devices. The Company is also a supplier of LCD fabrication equipment to the flat panel display industry, and a supplier of solar PV manufacturing systems to the solar industry, based on revenue. There are a number of competitors serving the semiconductor manufacturing equipment industry, with some offering a single product line and others offering multiple product lines. The Company's competitors range from suppliers serving a single region to global, diversified companies. The Company is subject to environmental and safety regulations in connection with its global business operations, including but not limited to: regulations related to the development, manufacture and use of its products; recycling and disposal of materials used in its products or in producing its products; the operation of i

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