Home / Tech & Systems / Profitability Margin Analysis Delights Active Investors: Applied Materials (NASDAQ:AMAT), Autodesk (NASDAQ:ADSK)

Profitability Margin Analysis Delights Active Investors: Applied Materials (NASDAQ:AMAT), Autodesk (NASDAQ:ADSK)

To stick with focus on profitability valuation, Applied Materials, Inc. (NASDAQ:AMAT) also listed in significant eye-catching mover, AMAT attains returns on investment ratio of 17.60% percent, which suggests it’s viable on security that has lesser ROI.

Applied Materials Inc reported that lower-than-expected quarterly revenue, largely due to slowing smartphone sales. Applied Materials, whose results are seen as the bellwether for the chip industry, reported a 39.2 percent jump in fourth-quarter revenue to $3.30 billion, but narrowly missed analysts’ average estimate of $3.31 billion.

The company’s net income rose to $610 million, or 56 cents per share, in the three months ended Oct. 30 from $336 million, or 28 cents per share, a year earlier. Excluding items, the company earned 66 cents per share, beating analysts’ average estimate of 65 cents, according to Thomson Reuters I/B/E/S.

To strengthen this concept we can use profit margin, which is standing at positive 17.40% percent, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 21.70% percent and 41.10% percent respectively. Turns back to returns ratios, the co’s returns on assets calculated as 17.60% percent; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stands at 24.80% percent.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 37.30%, and looking further price to next year’s EPS is 5.46%. While take a short look on price to sales ratio, that was 3.46 and price to earning ration of 24.78 attracting passive investors.

Autodesk, Inc. (NASDAQ:ADSK) kept active in profitability ratio analysis, on current situation shares price inching up -0.41% to $75.21. The total volume of 1.99 Million shares held in the session, while on average its shares change hands 1997.68 shares.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of -23.00%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at -9.90%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of ADSK stands at negative -15.20%; that indicates a firm actually every dollar of sales keeps in earnings. The -6.70% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of ADSK, it holds price to book ratio of 12.60 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 2593.45. ADSK is presenting price to cash flow of 8.25 and free cash flow concluded as 95.87.

 

About Gerard Bergeron

Gerard Bergeron covers Bio-pharmacy or healthcare sector Press Releases news updates. He has extensive three year of experience in content writing as freelance writer. He performs analysis of Healthcare Companies and provides worthy information for investor community. He is an experienced writer with a precise grasp of the English language and a clear, compelling writing style.

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