Applied Materials Stock Fair Value Calculation – APPLIED MATERIALS Reports Record Fourth Quarter FY2023 Earnings
November 26, 2023
🌥️Earnings Overview
APPLIED MATERIALS ($NASDAQ:AMAT) reported its earnings results for FY2023’s fourth quarter on October 31, 2023. Total revenue for the quarter was USD 6.7 billion, a slight decrease of 0.4% compared to the same period in the prior year. However, net income was up 25.8%, amounting to USD 2.0 billion.
Share Price
This marked a significant increase in the company’s earnings compared to the previous quarters. The company managed to attain this milestone despite the ongoing pandemic which has had a significant impact on the global economy. The company has reported increased revenue from its core semiconductor systems segment, driven by strong sales in semiconductor equipment and services. APPLIED MATERIALS also reported increased revenue from other segments such as display, solar and advanced materials due to strong demand from the automotive and consumer electronics industries. Overall, the company performed well during the fourth quarter and is looking to build upon this success in the coming quarters.
The company is focused on investing in its research and development activities and expanding its market reach in order to achieve further growth. This should lead to increased profits for the company in the future and continued success. 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 Calculation
At GoodWhale, we recently conducted an analysis of the wellbeing of APPLIED MATERIALS. Our proprietary Valuation Line revealed the intrinsic value of APPLIED MATERIALS share to be approximately $141.9. Currently, the stock is trading at $154.8, which is a fair price yet slightly overvalued by 9.1%. With this analysis, we hope to help APPLIED MATERIALS investors make informed decisions and gain better returns for their investments. More…
Peers
Applied Materials, Inc. and its competitors, Lam Research Corporation, KLA Corporation, and ASML Holding NV, compete in the semiconductor equipment industry. This industry is capital intensive, with high barriers to entry. The four companies have similar business models, but Applied Materials has a slight edge in terms of market share.
– Lam Research Corp ($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‘ fourth quarter financial results for FY2023 showed total revenue of USD 6.7 billion, a slight decrease compared to the same period of the previous year. Net income, however, was up significantly at 25.8%, amounting to USD 2.0 billion. The company’s stock price has increased steadily over the past year, with strong performance in the technology sector in general. Investors consider APPLIED MATERIALS a solid long-term investment, as the company continues to invest in innovation and efficiency, while maintaining its competitive edge in the market.
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