No. of Recommendations: 0
I compiled this RM spreadsheet on Applied Materials.
They supply semiconductor manufacturing equipment to
chipmakers. Seems like an important industry to be in.
I am new at this so I would appreciate any feedback.
I had some trouble finding a viable competitor which is a
good sign. I used KLA Tencor Inc. which only has
about 1/5 the revenues as AMAT. Any other
suggestions? At 49 they just missed a first tier
ranking. Their fool ratio was 1.26 which just misses
the 1.25 cutoff or they would have topped the 50 point
barrier. What about valuation? At a P/E of 84 it
looks expensive. But when you couple in the expected
70% growth in revenues for FY00 and the 25% growth in
earnings for the foreseeable future, this looks one
like a winner.
The Motley Fool's Rule Maker Ranker
Version 2.0 -- Last Updated April 19, 1999
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Financial AnalysiCompany Being Evaluated Competitor #1 Competitor #2 Competitor #3
Applied Materials Inc. KLA Tencor Corp. <Fill in Name> <Fill in Name>
Current Period Year-ago PeriodYear-over-Year Current Period Current Period Current Period
1/31/00 1/31/99 Growth 12/31/99 <Date> <Date>
Income Statement . . .
Sales 1,666,957 742,477 124.5% 330,757
Cost of Goods S 831,544 421,374 97.3% 153,373
Net Income 328,469 52,885 521.1% 49,249
Shares Outstand 409,817 388,233 5.6%
Balance Sheet . . .
Cash & Equivale 3,004,177 1,924,313 56.1% 446,133
Current Assets 5,060,461 3,597,539 40.7% 1,778,542
Short-term Debt 42,273 7,652 452.4% 15,145
Current Liabili 1,669,393 1,042,959 60.1% 411,571
Long-term Debt 584,357 616,902 -5.3% 0
1 0 0Competitors
Margins & Ratios . . .
Gross Margins 50.1% 43.2% 6.9 53.6% 53.6%
Net Margins 19.7% 7.1% 12.6 14.9% 14.9%
Cash-to-Debt 4.79 3.08 55.6% 29.46 29.46
Net Cash 2377547.0 1299759.0 82.9% 430988.0 430988.0
Fool Flow Ratio 1.26 1.62 -21.8% 3.36 3.36
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Ranking Rule Makers
1) Brand Points (0-1) 3) Financial Dire Points (0-3)
Familiarity 1 Sales Growth 3
Openness 1 Gross Margins 3
Optimism 1 Net Margins 3
Legitimacy 1 Shares Outstandin 1
Inevitability 1 Cash-to-Debt 2
Solitariness 1 Fool Flow Ratio 3
Humor 1 Expansion Potenti 3
Subtotal 7 Subtotal 18
2) Financial Loca Points (0-2) 4) Monopoly Statu Points (0-4)
Mass Market Habit 2 Gross Margins 0
Gross Margins 1 Net Margins 2
Net Margins 2 Net Cash 4
Cash-to-Debt 2 Fool Flow Ratio 4
Fool Flow Ratio 0 Convenience 4
Your Interest 2 Subtotal 14
Subtotal 9
5) Your Enjoymen 1
Total Score 49 Second Tier
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