Applied Materials Stock Price and Value Analysis

Should you buy Applied Materials stock? (NasdaqGS:AMAT). Let's see how it does in our automated value investing analysis system.

AMAT Free Cash Flow Trend

Free Cash Flow trendline for AMAT
Free Cash Flow trendline for Applied Materials

Based on historical returns, we believe that Applied Materials can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company is very stable.
  • This company has a low dividend yield.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the AMAT Numbers

AMAT Price
(Applied Materials stock price per share)
$113.45
[?] AMAT Fair Price
(based on intrinsic value)
$20.56
[?] AMAT Safety Price (based on a variable margin of safety) $16.45
[?] PE Ratio versus Sector 64% higher than other Technology stocks
[?] PE Ratio versus Industry 131% higher than other Semiconductor Equipment & Materials stocks
[?] Cash Yield 1.26%
[?] Free Cash Flow Jitter 42%
[?] Dividend Yield 1%
Shares Shorted 9,624,197

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,624,197 shares shorted. With 913,292,766 shares available for purchase and an average trading volume over the past 10 trading days of 9,462,128, it would take at least 1.017 days for all of the short holders to cover their shorts.

Is Applied Materials Stock on Sale?

We believe that Applied Materials may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Applied Materials looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy AMAT Stock?

Does Applied Materials have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.