ScoreWhy is Applied Materials, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.66%
- Healthy long term growth as Net Sales has grown by an annual rate of 9.16% and Operating profit at 12.06%
- The company is Net-Debt Free
2
With a growth in Operating Profit of 21.57%, the company declared Very Positive results in Jul 26
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 8,396 MM
- DIVIDEND PER SHARE(HY) Highest at USD 4.41
- INTEREST COVERAGE RATIO(Q) Highest at 4,744.12
3
With ROE of 32.98%, it has a expensive valuation with a 29.69 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 135.62%, its profits have risen by 8% ; the PEG ratio of the company is 8.4
4
High Institutional Holdings at 92.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.03% over the previous quarter.
5
Market Beating Performance
- The stock has generated a return of 135.62% in the last 1 year, much higher than market (S&P 500) returns of 16.00%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Applied Materials, Inc. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Applied Materials, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Applied Materials, Inc.
136.16%
1.80
59.62%
S&P 500
15.76%
1.22
13.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.16%
EBIT Growth (5y)
12.06%
EBIT to Interest (avg)
32.37
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
1.09
Tax Ratio
18.54%
Dividend Payout Ratio
20.55%
Pledged Shares
0
Institutional Holding
91.36%
ROCE (avg)
50.99%
ROE (avg)
43.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
90
Industry P/E
Price to Book Value
29.69
EV to EBIT
76.63
EV to EBITDA
72.67
EV to Capital Employed
32.38
EV to Sales
22.79
PEG Ratio
8.35
Dividend Yield
5.99%
ROCE (Latest)
42.25%
ROE (Latest)
32.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 8,396 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.41
INTEREST COVERAGE RATIO(Q)
Highest at 4,744.12
NET PROFIT(Q)
Highest at USD 2,741.42 MM
RAW MATERIAL COST(Y)
Fallen by -3.2% (YoY
CASH AND EQV(HY)
Highest at USD 17,474 MM
NET SALES(Q)
Highest at USD 9,115 MM
OPERATING PROFIT(Q)
Highest at USD 3,226 MM
OPERATING PROFIT MARGIN(Q)
Highest at 35.39 %
PRE-TAX PROFIT(Q)
Highest at USD 3,140 MM
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.41 times
Here's what is working for Applied Materials, Inc.
Operating Cash Flow
Highest at USD 8,396 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 4,744.12
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
Highest at USD 2,741.42 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 4.41 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 9,115 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 9,115 MM has Grown at 25.62%
over average net sales of the previous four periods of USD 7,256 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 3,226 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 35.39 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 3,140 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 3,140 MM has Grown at 40.34%
over average net sales of the previous four periods of USD 2,237.5 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 2,741.42 MM has Grown at 49.77%
over average net sales of the previous four periods of USD 1,830.44 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 17,474 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.2% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 151 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Applied Materials, Inc.
Debtors Turnover Ratio
Lowest at 4.41 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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