Is APPLIED MATERIALS INC (NASDAQ:AMAT) a Strong Candidate for Quality Investing?

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.

What matters for quality investors.

• APPLIED MATERIALS INC has achieved substantial revenue growth over the past 5 years, with a 9.68% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• APPLIED MATERIALS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 53.23% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• APPLIED MATERIALS INC maintains a healthy Debt/Free Cash Flow Ratio of 0.75, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 91.93%, 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 experienced impressive EBIT growth over the past 5 years, with 11.19% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

Fundamental analysis of NASDAQ:AMAT

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AMAT a very profitable company, without any liquidiy or solvency issues. AMAT has a decent growth rate and is not valued too expensively. With these ratings, AMAT could be worth investigating further for quality investing!.

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

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

Disclaimer

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.