AMAT Stock Forecast For 2019
This article was written by Vladimir Mazepa, a Financial Analyst at I Know First.
[Source: Wikimedia]
Summary:
- From technical perspective AMAT shows an opportunity to buy stock with a reasonable discount, where it is traded with a 38% discount from the last peak in March 2018.
- Financially AMAT is undervalued among its peers and trading at 11.82 Price to Earnings ratio, compared to 17.61 in the industry. Price/Book is a bit higher than average in the industry (4.81) and Price to Sales 2.27 and are lower than the average industry 3.42.
- AMAT generates stable positive Free Cash Flow
- Operating Margin is quite good for semiconductor industry with almost about 30%, which helps the company manage the possible problems in the future.
- Applied Materials invests in good projects by showing excellent Return on Equity – 40.93%, Assets – 17.82%, Capital – 25.26%.
- AMAT boosts its dividend to $0.20 from $0.10 per share with a yield at 2.1%
