Applied Materials Inc (AMAT)
Technology | Semiconductor Equipment & Materials
CEO: Gary E. Dickerson
Applied Materials Inc receives a in our proprietary ranking system that combines valuation, moat, operational performance, and financial strength. View the Top 50 tickrz ranked stocks here.
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Applied Materials Inc's valuation score is comprised of a P/E ratio of 22.5x, a P/B ratio of 6.2x, a P/S ratio of 4.1x, and an EV/EBITDA ratio of 15.3x. .
WARREN BUFFETT RANKING
Applied Materials Inc ranks 451 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a weak score, meaning it ranks poorly on valuation, moat, volatility, and financial strength factors.
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our analysis of its moat reveals neither a durable moat or enduring competitive advantages.
Applied Materials Inc has a Piotroski F Score of 8 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 17.36x, a debt/equity ratio of 41% and a Moat Rank of 300 translate to a strong Financial Strength score.
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 97.14% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 5.
VALUE + YIELD
Shares currently yield 0.91%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Applied Materials Inc ranks 68 among the S&P 500 constituents.
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. Its 1.2% 5 year annualized EPS growth, 0.6% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of -0.1% speak to its relatively poor ranking.