Applied Materials Revenue vs. Gross Profit
| AMAT Stock | USD 174.71 3.39 1.98% |
Total Revenue | First Reported 1985-10-31 | Previous Quarter 6.8 B | Current Value 7 B | Quarterly Volatility 1.9 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.47 | 0.4746 |
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| Net Profit Margin | 0.26 | 0.2641 |
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| Operating Profit Margin | 0.3 | 0.2895 |
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| Pretax Profit Margin | 0.29 | 0.3 |
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| Return On Assets | 0.24 | 0.228 |
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| Return On Equity | 0.5 | 0.4808 |
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For Applied Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Applied Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Applied Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Applied Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Applied Materials over time as well as its relative position and ranking within its peers.
Applied |
Applied Materials' Revenue Breakdown by Earning Segment
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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Materials. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Materials listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.108 | Earnings Share 8.62 | Revenue Per Share 32.344 | Quarterly Revenue Growth 0.055 | Return On Assets 0.1521 |
The market value of Applied Materials is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Materials' value that differs from its market value or its book value, called intrinsic value, which is Applied Materials' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Materials' market value can be influenced by many factors that don't directly affect Applied Materials' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Applied Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Materials' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Applied Materials Gross Profit vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Applied Materials's current stock value. Our valuation model uses many indicators to compare Applied Materials value to that of its competitors to determine the firm's financial worth. Applied Materials is rated second in revenue category among its peers. It is number one stock in gross profit category among its peers fabricating about 0.44 of Gross Profit per Revenue. The ratio of Revenue to Gross Profit for Applied Materials is roughly 2.27 . At this time, Applied Materials' Total Revenue is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Applied Materials by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Applied Revenue vs. Competition
Applied Materials is rated second in revenue category among its peers. Market size based on revenue of Information Technology industry is presently estimated at about 89.73 Billion. Applied Materials totals roughly 27.18 Billion in revenue claiming about 30% of equities under Information Technology industry.
Applied Gross Profit vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Applied Materials |
| = | 27.18 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Applied Materials |
| = | 11.99 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Applied Gross Profit Comparison
Applied Materials is currently under evaluation in gross profit category among its peers.
Applied Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Applied Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Applied Materials will eventually generate negative long term returns. The profitability progress is the general direction of Applied Materials' change in net profit over the period of time. It can combine multiple indicators of Applied Materials, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -195.3 M | -185.5 M | |
| Operating Income | 7.9 B | 8.3 B | |
| Income Before Tax | 8.2 B | 8.6 B | |
| Total Other Income Expense Net | 285 M | 299.2 M | |
| Net Income | 7.9 B | 8.3 B | |
| Income Tax Expense | 975 M | 1 B | |
| Net Income Applicable To Common Shares | 7.5 B | 7.9 B | |
| Net Income From Continuing Ops | 7.9 B | 8.3 B | |
| Non Operating Income Net Other | 44.9 M | 56.8 M | |
| Interest Income | 345 M | 362.2 M | |
| Net Interest Income | 71.3 M | 74.9 M | |
| Change To Netincome | 255.3 M | 302 M | |
| Net Income Per Share | 8.68 | 6.47 | |
| Income Quality | 0.92 | 1.22 | |
| Net Income Per E B T | 0.88 | 0.87 |
Applied Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Applied Materials. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Applied Materials position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Applied Materials' important profitability drivers and their relationship over time.
Use Applied Materials in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Applied Materials position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Applied Materials will appreciate offsetting losses from the drop in the long position's value.Applied Materials Pair Trading
Applied Materials Pair Trading Analysis
The ability to find closely correlated positions to Applied Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Materials when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Applied Materials - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Applied Materials to buy it.
The correlation of Applied Materials is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Applied Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Applied Materials can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Applied Materials position
In addition to having Applied Materials in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Shipbuilding Railroad Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 constituents at this time.
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Additional Tools for Applied Stock Analysis
When running Applied Materials' price analysis, check to measure Applied Materials' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Applied Materials is operating at the current time. Most of Applied Materials' value examination focuses on studying past and present price action to predict the probability of Applied Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Materials' price. Additionally, you may evaluate how the addition of Applied Materials to your portfolios can decrease your overall portfolio volatility.