Why APPLIED MATERIALS INC (NASDAQ:AMAT) Deserves Consideration as a Quality Investment.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if APPLIED MATERIALS INC (NASDAQ:AMAT) is suited for quality investing. Investors should of course do their own research, but we spotted APPLIED MATERIALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of APPLIED MATERIALS INC

• The 5-year revenue growth of APPLIED MATERIALS INC has been remarkable, with 11.9% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• APPLIED MATERIALS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 56.16% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.82, 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.
• APPLIED MATERIALS INC has experienced impressive EBIT growth over the past 5 years, with 14.83% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

A complete fundamental analysis of NASDAQ:AMAT

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

Overall AMAT gets a fundamental rating of 7 out of 10. We evaluated AMAT against 106 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT gets an excellent profitability rating and is at the same time showing great financial health properties. AMAT has a correct valuation and a medium growth rate.

Check the latest full fundamental report of AMAT for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

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.