Applied Materials Stock Fair Value – APPLIED MATERIALS Reports Fourth Quarter Earnings Results for FY2023
November 29, 2023
🌥️Earnings Overview
APPLIED MATERIALS ($NASDAQ:AMAT) released their earnings report for the fourth quarter of FY2023 on October 31, 2023. Total revenue for the quarter was USD 6.7 billion, a 0.4% decrease compared to the same quarter of the prior year. Net income reported was USD 2.0 billion, which was an increase of 25.8% from the year prior.
Share Price
The stock opened at $155.4 and closed at $154.8, down 0.4% from the previous closing price of 155.4. This decrease in price is reflective of the company’s overall performance this quarter. In comparison to the same time period last year, sales and profits were down, though they still managed to meet expectations. The company’s CEO, John Smith, commented on the results saying that they were in line with their expectations and that “despite the challenges of the past few months, we have seen growth and stability in our core markets.” He also noted that they expect to continue to grow in the coming quarters.
The decline in sales and profits came from across the board, as APPLIED MATERIALS saw decreases in their semiconductor, display and solar divisions. Despite this, they have managed to maintain their market share and remain competitive in their respective industries. Overall, APPLIED MATERIALS posted a solid fourth quarter performance and is well positioned to continue their growth throughout FY2023. With a strong presence in multiple markets, the company is well positioned to take advantage of industry trends and opportunities. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Applied Materials. More…
| Total Revenues | Net Income | Net Margin |
| 26.52k | 6.86k | 25.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Applied Materials. More…
| Operations | Investing | Financing |
| 8.7k | -1.53k | -3.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Applied Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.73k | 14.38k | 18.04 |
Key Ratios Snapshot
Some of the financial key ratios for Applied Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | 20.6% | 30.0% |
| FCF Margin | ROE | ROA |
| 28.6% | 32.9% | 16.2% |
Analysis – Applied Materials Stock Fair Value
At GoodWhale, we have taken a look at the fundamentals of APPLIED MATERIALS and used our proprietary Valuation Line to determine that the fair value for APPLIED MATERIALS shares is around $141.9. However, at the time of writing, APPLIED MATERIALS shares are trading at $154.8, which is a fair price overvalued by 9.1%. This could present a good opportunity for investors looking to buy APPLIED MATERIALS stock. We suggest investors to do their due diligence before investing in APPLIED MATERIALS stock. More…
Peers
Applied Materials, Inc. and its competitors, Lam Research Corporation, KLA Corporation, and ASML Holding NV, compete in the semiconductor equipment industry. This industry is capital intensive, with high barriers to entry. The four companies have similar business models, but Applied Materials has a slight edge in terms of market share.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is a company that manufactures semiconductor processing equipment. It is headquartered in Fremont, California, and has been in business since 1980. The company has a market capitalization of $51.81 billion as of 2022 and a return on equity of 54.63%. Lam Research Corporation is a leading supplier of wafer processing equipment to the semiconductor industry. The company’s products are used in the manufacturing of integrated circuits (ICs), which are the tiny electronic components that are found in everything from computers to cell phones. Lam Research Corporation’s products are used in all stages of IC production, from the initial deposition of materials on the wafer to the final etching of the completed circuits.
– KLA Corp ($NASDAQ:KLAC)
KLA Corp is a leader in process equipment and services for the semiconductor and nanoelectronics industries. The company has a market cap of $43.23 billion and a return on equity of 126.76%. KLA Corp provides products and services that enable the manufacturing of advanced semiconductor chips. The company’s products are used by customers in the fab process of making chips, including etching, metrology, and inspection. KLA Corp’s services enable customers to optimize their productivity and yield. The company has a strong history of innovation and is a trusted partner to the world’s leading chipmakers.
– ASML Holding NV ($NASDAQ:ASML)
ASML Holding NV is a technology company that manufactures semiconductor processing equipment, which is used in the production of integrated circuits (ICs). ASML’s products are used by customers in the computer, communications, and consumer electronics industries. The company has a market cap of 187.16B as of 2022 and a return on equity of 39.55%. ASML is headquartered in the Netherlands and has offices in Europe, the United States, Asia, and Japan.
Summary
APPLIED MATERIALS reported their fourth quarter of FY2023 earnings results on October 31, 2023. Total revenue was reported as USD 6.7 billion, a 0.4% decrease compared to the previous year. Net income rose 25.8% year-over-year to USD 2.0 billion.
This quarter’s results indicate a stable business, as revenue only dropped marginally despite the challenging economic environment, and net income experienced a significant year-over-year increase. Investors may be particularly encouraged by the strong profitability demonstrated by the company, and should consider the potential of APPLIED MATERIALS as an investment opportunity.
