Why NASDAQ:AMAT qualifies as a quality stock.

In this article we will dive into APPLIED MATERIALS INC (NASDAQ:AMAT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed APPLIED MATERIALS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:AMAT may be interesting for quality investors.

• Over the past 5 years, APPLIED MATERIALS INC has experienced impressive revenue growth, with 11.9% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 54.87%, APPLIED MATERIALS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 0.97, APPLIED MATERIALS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• APPLIED MATERIALS INC exhibits impressive Profit Quality (5-year) with a 90.62% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 14.83%, APPLIED MATERIALS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, APPLIED MATERIALS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AMAT has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of AMAT

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.