News Image

Why the quality investor may take a look at APPLIED MATERIALS INC (NASDAQ:AMAT).

By Mill Chart

Last update: Nov 15, 2023

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.

Exploring Why NASDAQ:AMAT Holds Appeal for Quality Investors.

  • APPLIED MATERIALS INC has achieved substantial revenue growth over the past 5 years, with a 11.9% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • 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.
  • APPLIED MATERIALS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.82, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 90.62%, APPLIED MATERIALS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • APPLIED MATERIALS INC has consistently achieved strong EBIT growth over the past 5 years, with a 14.83% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • APPLIED MATERIALS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NASDAQ:AMAT

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall AMAT gets a fundamental rating of 7 out of 10. We evaluated AMAT against 104 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 decent growth rate and is not valued too expensively.

Our latest full fundamental report of AMAT contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

Back