Applied Materials, Inc. [NASDAQ: AMAT] shares went lower by -0.60% from its previous closing of $51.56, now trading at the price of $51.25, also adding -0.31 points. Is AMAT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 6.12 million contracts. Compared to the average trading volume of AMAT shares, the company saw a far better performance. Moreover, the stock has a 920.98M float and a +1.79% run over in the last seven days. AMAT share price has been hovering between $52.42 and $28.79 lately, and is definitely worthy of attention.
Applied Materials, Inc. [NASDAQ:AMAT]: Analyst Rating and Earnings
Its stock price has been found in the range of 28.79 to 52.42. This is compared to its latest closing price of $51.56.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 21 Nov (In 70 Days).
Fundamental Analysis of Applied Materials, Inc. [AMAT]
Now let’s turn to look at profitability: with a current Operating Margin for Applied Materials, Inc. [AMAT] sitting at +27.72 and its Gross Margin at +45.06, this company’s Net Margin is now 19.40%. These measurements indicate that Applied Materials, Inc. [AMAT] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 35.69, and its Return on Invested Capital has reached 37.20%. Its Return on Equity is 40.93, and its Return on Assets is 17.81. These metrics all suggest that Applied Materials, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Applied Materials, Inc. [AMAT] has generated a Total Debt to Total Equity ratio of 77.63. Similarly, its Total Debt to Total Capital is 43.70, while its Total Debt to Total Assets stands at 29.85. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 20.70, and its Long-Term Debt to Total Capital is 77.63.
What about valuation? This company’s Enterprise Value to EBITDA is 9.12 and its Total Debt to EBITDA Value is 1.01. The Enterprise Value to Sales for this firm is now 3.21, and its Total Debt to Enterprise Value stands at 0.15. Applied Materials, Inc. [AMAT] has a Price to Book Ratio of 4.58, a Price to Cash Flow Ratio of 8.77 and P/E Ratio of 17.09. These metrics all suggest that Applied Materials, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Applied Materials, Inc. [AMAT] earns $821,571 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.04 and its Total Asset Turnover is 0.93. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.73 and its Current Ratio is 2.64. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Applied Materials, Inc. [AMAT] has 928.36M shares outstanding, amounting to a total market cap of $47.58B. Its stock price has been found in the range of 28.79 to 52.42. At its current price, it has moved down by -2.23% from its 52-week high, and it has moved up 78.01% from its 52-week low.
This stock’s Beta value is currently 1.64, which indicates that it is 1.91% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 65.32. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Applied Materials, Inc. [AMAT] a Reliable Buy?
Shares of Applied Materials, Inc. [AMAT], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.