Analyzing the Quality Characteristics of APPLIED MATERIALS INC (NASDAQ:AMAT).

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.

• 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.
• The Profit Quality (5-year) of APPLIED MATERIALS INC stands at 90.62%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• APPLIED MATERIALS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.83%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• APPLIED MATERIALS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for 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 6 out of 10. We evaluated AMAT against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a correct valuation and a medium growth rate.

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

More ideas for quality investing can be found on ChartMill 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.