AMAT (Update)
Applied Materials Inc.
TMT
04/10/2014
Presented
| Date | 04/08/2014 |
| Price | $20.03 |
| Market Cap | $24.30B |
| Ent Value | $23.91B |
| P/E Ratio | 25.44x |
| Book Value | $6.57 |
| Div Yield | 1.7% |
| Shares O/S | 1.21M |
| Ave Daily Vol | 13,840,000 |
| Short Int | 5.86% |
Current
| Price | $191.02 |
| Market Cap | $157.48B |
| Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. The company’s Silicon Systems Group segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. This segment offers systems that perform primary processes used in chip fabrication, including atomic layer deposition, chemical vapor deposition, physical vapor deposition, electrochemical deposition, rapid thermal processing, ion implantation, chemical mechanical planarization, wet cleaning, and wafer metrology and inspection, as well as systems that etch or inspect circuit patterns on masks used in the photolithography process. Its Applied Global Services segment provides products and services designed to improve the performance and productivity, and reduce the environmental impact of the fab operations of semiconductor, display, and solar manufacturing. The company’s Display segment offers products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes, and other display technologies for televisions, personal computers, tablets, smartphones, and other consumer-oriented devices. Its Energy and Environmental Solutions segment provides manufacturing systems for wafer-based crystalline silicon cells and modules. This segment also offers roll-to-roll vacuum Web coating systems for deposition of various films on flexible substrates for flexible electronics, packaging, and other applications. The company serves manufacturers of semiconductor wafers and chips, flat panel LCDs, solar PV cells and modules, and other electronic devices. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California. |
Please note, this is an update to LONG — Applied Materials, Inc. (AMAT), originally presented on 1/15/14.
Highlights
The presenter remains long shares of AMAT, and continues to see upside to $30 post completion of the merger with Tokyo Electron. Investors still seem to hate semi cap equipment, and some literally refuse to look at AMAT, said the presenter. The Street still has not adjusted EPS estimates to reflect the incremental earnings power of the consolidated company, which will own ~25% of the semiconductor capital equipment market.
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