AMAT

Applied Materials Inc

TMT


Presented:08/10/2015
Price:$17.60
Cap:$21.84B
Current Price:$191.02
Cap:$157.48B

Presented

Date08/10/2015
Price$17.60
Market Cap$21.84B
Ent Value$25.77B
P/E Ratio16.92x
Book Value$6.78
Div Yield1.91%
Shares O/S1,241.00M
Ave Daily Vol16,596,351
Short Int1.62%

Current

Price$191.02
Market Cap$157.48B
Applied Materials, Inc. provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries. The company operates through four business segments: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions. The Silicon Systems Group segment develops, manufactures and sells manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits. The Applied Global Services segment segment encompasses services, products and integrated solutions to optimize equipment and fab performance and productivity. The display segment provides manufacturing liquid crystal displays, organic light-emitting diodes, and other display technologies for televisions, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices. The Energy and Environmental Solutions segment includes systems for manufacturing wafer-based crystalline silicon (c-Si) cells and modules. These systems are designed to increase the conversion efficiency and yields of solar PV devices in order to help reduce the cost per watt of solar generated electricity. Applied Materials was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Applied Materials (AMAT) and Tokyo Electron (8035 JP)

Highlights

Amid the current sell off in semiconductors and semi cap equipment and following the company’s failed merger with Tokyo Electron (8035 JP), the presenter believes shares of AMAT at current levels have meaningful upside and minimal downside potential. Currently earning around $1.25 per share today, management recently guided to $2 per share in earnings for FY18 assuming normalized wafer fabrication equipment (“WFE”) spend and effectively zero industry growth between now and then. 

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Idea Discussion

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