NASDAQ:AMAT
$12.29
(2/9 10:22AM)
+1.8%
| Open | $12.24 |
Mkt Cap | $16.2 Billion |
| High | $12.4 |
52Wk High | $14.94 |
| Low | $12.15 |
52Wk Low | $8.45 |
| Volume | 4.2 Million |
Avg Vol 10D | 30.2 Million |
Ockham's Rating/Recommendation Summary
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AMAT Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AMAT through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 4.82x and 2.74x respectively.
Utilizing this range we can see that AMAT’s current Price to Sales per share ratio of 3.27x is somewhat below its historical weighted average by 14%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.
AMAT Cash Earnings
AMAT is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at AMAT, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time.
Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.
AMAT Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In AMAT’s case, the estimated annual dividend is $0.24 resulting in a current dividend yield of 1.96%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from AMAT against the historic high and low levels over the past 10 years. The highest dividend yield from AMAT over this period was 2.93% while the lowest dividend yield was 0.00% If you are looking for some “bang for your buck” then a dividend yield of 33.79% above the historical median should be enticing. AMAT receives a positive boost in our view because as you know, equity at its core is simply a claim on future dividends.
See Who is Talking About News from AMAT on Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Applied Materials, Incorporated.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMAT has been less covered in the news compared to the rest of our universe of stocks. Please be aware that AMAT is trading off $0.72 today, and is clearly being affected by the latest news. The Motley Fool CAPS data suggests that investors believe Applied Materials, Incorporated will beat the market in the foreseeable future. At Ockham, we are not advising buying Applied Materials, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.
“… Now, it is true that you do have some powerful competitors including APPLIED MATERIALS. So you have to not only have the pie grow but you have to take a share of the pie, right? …”
News on AMAT From the Pundits on Closing Bell
As always, the latest news on AMAT is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.
A significant sell off of $0.71 is underway right now, so investors in AMAT should pay close attention to the news. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of AMAT, it is getting significantly more attention in recent news coverage than we are used to seeing. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… Chips hit hard, intel, AMAT, rambus, there was a sea of red when it comes to the chips. We were talking about the strength of the chip market. It has turned and turned fast. …”
AMAT Gets Mentioned in the Financial Media
The latest news on Tech Trader Daily-Barron's in regards to AMAT came through on RazorWire recently.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of AMAT, it is getting significantly more attention in recent news coverage than we are used to seeing. A significant sell off of $0.81 is underway right now, so investors in AMAT should pay close attention to the news. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… APPLIED MATERIALS (AMAT) is down 54 cents, or 4. 4%, to $11. 74. Qualcomm (QCOM) is down $1. 24, or 3. 1%, to $38. 39. Micron (MU) is down 40 cents, or 4. 4%, to $8. 62. …”
RazorWire: AMAT and Regulators Talked About on Tech Trader Daily-Barron's
RazorWire news analytics has noted a discussion of AMAT that may be related to a regulators or the Fed on Tech Trader Daily-Barron's.
As of this week's report, we have an Overvalued valuation on AMAT because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. In comparison to the other stocks that we follow, Applied Materials, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… APPLIED MATERIALS (AMAT) disclosed in an 8-K filing with the SEC that several of its employees, including the former head of APPLIED MATERIALS Korea, who is now a vice president ... …”
Discussion of Debt at AMAT on Tech Trader Daily-Barron's
At Ockham, we look to make sure that any debt taken on by a company corresponds directly to increases is sales. Take a look at RazorWire for the latest on AMAT's debt from Tech Trader Daily-Barron's.
The Motley Fool CAPS data suggests that investors believe Applied Materials, Incorporated will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Applied Materials, Incorporated has been talked about more than normal recently. At Ockham, we are not advising buying Applied Materials, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.
“… Kumar advises shorting APPLIED MATERIALS (AMAT) against a long position in ASML (ASML). He thinks AMAT is losing market share in its semiconductor equipment business to ... …”
RazorWire has Detected News About AMAT on Mad Money
As always, the latest news on AMAT is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; AMAT has received less coverage from the financial media in business television and blogs.
“… caller: what do you think of APPLIED MATERIALS? > > I thought the stock was break out the other day. It looks like it's coming back in. …”
News Developing on Squawk On The Street for AMAT
News has broken via the television and viral blogs regarding AMAT, so investors should take an interest in learning what was said.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; AMAT has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… what happens tomorrow. APPLIED MATERIALS is hoping to boost the rest of the equipment stock. Citi helping that outperform. …”
The Latest News for AMAT Was Just on Squawk On The Street
The latest news from Squawk On The Street on AMAT is available through Ockham's news analytics platform RazorWire.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; AMAT has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… We have APPLIED MATERIALS up 1 1/2%. The idc says chip sales in the fourth quarter were at a record. They didn't say what the number was but did say they're up 33% but they ... …”
See More News on AMAT from Closing Bell
The latest news on Closing Bell in regards to AMAT came through on RazorWire recently.
In comparison to the other stocks that we follow, Applied Materials, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. As of this week's report, we have an Overvalued valuation on AMAT because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… You've got citigroup coming out, downgreeding the whole semiconductor capital equipment group, so AMAT, teradyne, that group is all under pressure right now. …”
Holding AMAT Stock? See What Is Being Discussed on Power Lunch
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Applied Materials, Incorporated.
As of this week's report, we have an Overvalued valuation on AMAT because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Applied Materials, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Companies like APPLIED MATERIALS week. Mike huckman? > > bob, the semis are under pressure here. One of the reasons we're down 0. …”