Why Quality-Oriented Investors Should Consider NASDAQ:AMAT.

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.

Some of the quality metrics of NASDAQ:AMAT highlighted

• 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.
• The ROIC excluding cash and goodwill of APPLIED MATERIALS INC stands at 56.16%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• 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.
• 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.
• The 5-year EBIT growth of APPLIED MATERIALS INC has been remarkable, with 14.83% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• APPLIED MATERIALS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NASDAQ:AMAT?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various 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 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

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.