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Is this Large Market Cap Stock target price reasonable for Applied Materials, Inc. (NASDAQ:AMAT)?

The company in question is, Applied Materials, Inc. (NASDAQ:AMAT) currently with a stock price of 28.07 (0.75% today). The market cap for Applied Materials, Inc. is 30399.81, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for Applied Materials, Inc. is 33.5. Currently Applied Materials, Inc. is trading with a P/E of 21.96, and a forward P/E of 12.56. Average volume for Applied Materials, Inc. is 12662.64 and so far today it is 12138200.

Performance in the last year for Applied Materials, Inc. has been 81.96%. For EPS growth, Applied Materials, Inc. has seen a growth of 29.00%, and is looking to grow in the next year to 28.02%. More long term stats show that EPS growth has been 10.10% over the last five years and could be 18.23% for the next five years. Applied Materials, Inc. has seen sales growth quarter over quarter at 13.30%, with EPS growth quarter over quarter at 72.90%. The 20-day simple moving average is -3.50%, with the 200-day simple moving average coming to 22.39%.

Since the IPO date for Applied Materials, Inc. on the 9/7/1984, Applied Materials, Inc. has seen performance year to date to be 52.35%. With Applied Materials, Inc. trading at 28.07, the dividend yield is 1.43%, and the EPS is 1.28.

So could Applied Materials, Inc., be undervalued? Well as said before P/E is 21.96. The PEG is 1.2, P/S is 3.07 and the P/B is at 4.46. The P/cash is 9.31, with P/free cash flow at 20.69.

Applied Materials, Inc. ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 1.8. This is with long term debt/equity at 0.49, and total debt/equity at 0.49.

In terms of margins, Applied Materials, Inc. has a gross margin of 41.10%, an operating margin of 18.20% and a profit margin of 14.60%.Payout ratio for Applied Materials, Inc. is 31.10%. Return on assets come to 10.40% with return on investment coming to 12.10%.

Insider ownership for Applied Materials, Inc., is at 0.20% and institutional ownership comes to 84.70%. Outstanding shares are at 1083. While shares float is 1076.22. The float short is currently 1.32%, and short ratio is 1.12.

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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