Applied Materials, Inc. (NASDAQ:AMAT): Commentary On Fundamentals

Attractive stocks have exceptional fundamentals. In the case of Applied Materials, Inc. (NASDAQ:AMAT), there’s is a financially-sound , dividend-paying company with a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Applied Materials here.

Established dividend payer with proven track record

AMAT has a strong track record of performance. In the previous year, AMAT delivered an impressive double-digit return of 48% Not surprisingly, AMAT outperformed its industry which returned 16%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. AMAT’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. AMAT appears to have made good use of debt, producing operating cash levels of 0.71x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:AMAT Income Statement Export January 19th 19

AMAT is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NasdaqGS:AMAT Historical Dividend Yield January 19th 19

Next Steps:

For Applied Materials, I’ve put together three essential aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for AMAT’s future growth? Take a look at our free research report of analyst consensus for AMAT’s outlook.

2. Valuation: What is AMAT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AMAT is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMAT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.