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Performance Comparison: Applied Mat And Competitors In Semiconductors & Semiconductor Equipment Industry

Published Nov 09, 2023 16:00 Updated Nov 09, 2023 17:10
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© Reuters. Performance Comparison: Applied Mat And Competitors In Semiconductors & Semiconductor Equipment Industry
 
AMAT
+2.07%
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PDFS
+3.82%
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ACMR
+0.78%
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SEDG
+2.46%
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ASML
+1.30%
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Benzinga - by Benzinga Insights, Benzinga Staff Writer.

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 (NASDAQ: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.

CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth
Applied Materials Inc 19.03 7.99 4.61 10.68% $2.0 $2.98 -1.46%
ASML Holding NV 30.95 19.66 8.79 16.76% $2.36 $3.46 15.48%
Lam Research Corp 21.97 10.61 5.51 10.92% $1.16 $1.65 -31.38%
KLA Corp 22.86 23.24 6.98 25.09% $1.03 $1.45 -12.02%
Entegris Inc 69.16 4.10 3.79 0.99% $0.2 $0.37 -10.62%
Teradyne Inc 40.18 5.41 9.22 5.25% $0.17 $0.4 -64.91%
Enphase Energy Inc 19.27 10.35 4.11 11.47% $0.16 $0.26 -13.18%
Onto Innovation Inc 35.25 3.66 6.81 1.58% $0.04 $0.1 -25.61%
Amkor Technology Inc 14.25 1.49 0.87 3.5% $0.33 $0.28 -12.57%
Axcelis Technologies Inc 18.64 5.33 3.98 8.53% $0.08 $0.13 27.56%
SolarEdge Technologies Inc 19.15 1.62 1.18 -2.44% $-0.0 $0.14 -13.32%
Kulicke & Soffa Industries Inc 25.47 2.13 3.09 0.35% $0.01 $0.09 -48.7%
Veeco Instruments Inc 25.67 2.31 2.31 3.99% $0.03 $0.08 3.17%
Cohu Inc 28.59 1.55 2.15 0.41% $0.02 $0.07 -27.04%
Photronics Inc 10.26 1.27 1.38 2.85% $0.08 $0.09 1.94%
PDF Solutions Inc 124.78 4.88 6.73 3.12% $0.0 $0.03 20.0%
ACM Research Inc 16.38 1.46 2.31 3.61% $0.03 $0.09 16.59%
Aehr Test Systems 37.09 8.53 9.33 6.0% $0.0 $0.01 93.27%
Amtech Systems Inc 27.72 0.99 0.83 -1.03% $0.0 $0.01 53.98%
Average 32.65 6.03 4.41 5.61% $0.32 $0.48 -1.52%
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through a meticulous analysis of Applied Mat, we can observe the following trends:

  • A Price to Earnings ratio of 19.03 significantly below the industry average by 0.58x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.99 which exceeds the industry average by 1.33x.

  • The stock's relatively high Price to Sales ratio of 4.61, surpassing the industry average by 1.05x, may indicate an aspect of overvaluation in terms of sales performance.

  • With a Return on Equity (ROE) of 10.68% that is 5.07% 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 $2.0 Billion, which is 6.25x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • With higher gross profit of $2.98 Billion, which indicates 6.21x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.

  • The company is experiencing remarkable revenue growth, with a rate of -1.46%, outperforming the industry average of -1.52%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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.

When evaluating Applied Mat alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:

  • Applied Mat has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.4.

  • This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways The valuation analysis of Applied Mat in the Semiconductors & Semiconductor Equipment industry reveals that its PE ratio is low compared to its peers, indicating potential undervaluation. The PB ratio is high, suggesting that the market values the company's assets more than its earnings. The PS ratio is also high, indicating that investors are willing to pay a premium for the company's sales. On the other hand, Applied Mat shows high ROE, EBITDA, gross profit, and revenue growth compared to its industry peers, suggesting strong financial performance and growth potential.

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

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Performance Comparison: Applied Mat And Competitors In Semiconductors & Semiconductor Equipment Industry
 

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