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Performance Comparison: Applied Mat And Competitors In Semiconductors & Semiconductor Equipment Industry – Applied Mat (NASDAQ:AMAT)


In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Applied Mat AMAT and its primary competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company’s performance within the industry.

Applied Mat Background

Applied Materials is the largest semiconductor wafer fabrication equipment, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Applied Materials Inc 19.90 8.20 5.14 12.75% $2.36 $3.17 -0.39%
ASML Holding NV 35.74 22.70 10.15 16.76% $2.36 $3.46 15.48%
Lam Research Corp 26.35 12.72 6.61 10.92% $1.16 $1.65 -31.38%
KLA Corp 25.96 26.39 7.93 25.09% $1.03 $1.45 -12.02%
Enphase Energy Inc 33.55 18.01 7.16 11.47% $0.16 $0.26 -13.18%
Entegris Inc 89.95 5.33 4.93 0.99% $0.2 $0.37 -10.62%
Teradyne Inc 49.58 6.67 11.38 5.25% $0.17 $0.4 -64.91%
Amkor Technology Inc 20.32 2.13 1.24 3.5% $0.33 $0.28 -12.57%
Onto Innovation Inc 48.49 4.46 8.93 2.14% $0.05 $0.11 -18.51%
SolarEdge Technologies Inc 26.24 2.21 1.62 -2.44% $-0.0 $0.14 -13.32%
Axcelis Technologies Inc 19.29 5.51 4.12 8.53% $0.08 $0.13 27.56%
Kulicke & Soffa Industries Inc 55.08 2.63 4.23 1.99% $0.04 $0.1 -29.34%
Photronics Inc 15.11 1.97 2.12 4.61% $0.09 $0.08 1.46%
Veeco Instruments Inc 30.07 2.71 2.71 3.99% $0.03 $0.08 3.17%
Cohu Inc 32.69 1.77 2.46 0.41% $0.02 $0.07 -27.04%
PDF Solutions Inc 484.43 5.86 7.92 -2.23% $0.0 $0.03 6.25%
ACM Research Inc 17.18 1.54 2.42 3.61% $0.03 $0.09 26.07%
Aehr Test Systems 44.27 10.18 11.13 6.0% $0.0 $0.01 93.27%
inTest Corp 12.70 1.70 1.17 3.18% $0.0 $0.02 6.15%
Average 59.28 7.47 5.46 5.76% $0.32 $0.49 -2.97%

After a detailed analysis of Applied Mat, the following trends become apparent:

  • The Price to Earnings ratio of 19.9 is 0.34x lower than the industry average, indicating potential undervaluation for the stock.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 8.2 which exceeds the industry average by 1.1x.

  • With a relatively low Price to Sales ratio of 5.14, which is 0.94x the industry average, the stock might be considered undervalued based on sales performance.

  • With a Return on Equity (ROE) of 12.75% that is 6.99% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.36 Billion, which is 7.37x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • The gross profit of $3.17 Billion is 6.47x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company is experiencing remarkable revenue growth, with a rate of -0.39%, outperforming the industry average of -2.97%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company’s capital structure.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company’s financial health and risk profile, aiding in informed decision-making.

By evaluating Applied Mat against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

  • Applied Mat is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.37.

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

The valuation analysis for Applied Mat in the Semiconductors & Semiconductor Equipment industry indicates that the company has a low PE ratio, suggesting that its stock price is relatively low compared to its earnings. The high PB ratio indicates that the company’s stock price is high compared to its book value. The low PS ratio suggests that the company’s stock price is low compared to its revenue. On the other hand, the high ROE, EBITDA, gross profit, and revenue growth indicate that Applied Mat is performing well in terms of profitability and growth compared to its peers in the industry.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.



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