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Applied Materials, Inc. (NASDAQ: AMAT) – Is this large market cap stock undervalued?

Applied Materials, Inc. (NASDAQ: AMAT), is firmly in the large market cap category with market cap of 31102.47. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Applied Materials, Inc. is 27.75 (with a change from open of -1.79%), this in conjunction with a target price of 33.5. Volume today has so far reached 9804887, with an average volume of about 12689.77. The GAP for this stock, is -1.36%.

The P/E ratio is 22.41, bringing the forward P/E to a value of 12.82. The current EPS for Applied Materials, Inc., is 1.28, with a EPS growth for this year coming to a value of 29.00%. Performance has been interesting with performance year to date coming to 55.44%.

Looking further into the growth statistics for Applied Materials, Inc., EPS is looking like it will grow 28.02% in the next year. Looking even further it is projected to be 18.23%. Quarter over quarter is 72.90% for EPS growth and for sales growth quarter over quarter it is 13.30%. Looking at past EPS growth statistics we see that for the past five years it has been 10.10%. Sales growth for the past five years has in fact been 0.20%.

Looking at the ownership, we see that the insider ownership is at 0.30% and institutional ownership is 84.90%. Shares outstanding is 1085.98, while shares float is at a value of 1077.78. Float short for Applied Materials, Inc. is 1.36% and the short ratio is 1.15.

In terms of debt, long term debt/equity is 0.49, while the total debt/equity comes to 0.49. The ability to meet these debts, means that the current ratio is 2.5, and the quick ratio is 1.8. The most recent gross margin is 41.10% and their operating margin is 18.20%. The profit margin is 14.60%.

Applied Materials, Inc. has seen returns on assets of 10.40%, and on investment, 12.10%. Return on equity is 20.60%. Price/Earnings to growth ratio is 1.23. Price/Sales ratio is at a value of 3.14, with Price/book ratio coming to 4.55 and Price/cash is 9.52, and finally Price/Free cash Flow is 21.17.

The simple moving averages are -4.50% and 21.21% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -10.70% and the 52 week low is 87.61%.

Applied Materials, Inc. has a dividend yield of 1.40%, with a current price of 27.75. The ability to pay this means the payout ratio is 31.10%. This is in an industry, Semiconductor Equipment & Materials, with equally high dividends from other companies in this sector, which it is Technology. Applied Materials, Inc. is based in USA.

Performance in the Semiconductor Equipment & Materials industry means that Applied Materials, Inc. has seen performance for the past week of -4.34%, with performance for the month coming to -2.52%. Looking at the data for the quarter it is at a value of 10.11%, and for the half year the performance is 92.77%. Volatility for this week is 2.31% and for the month this is 2.05%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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