Why APPLIED MATERIALS INC (NASDAQ:AMAT) qualifies as a quality stock.

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.

A Deep Dive into APPLIED MATERIALS INC's Quality Metrics.

• APPLIED MATERIALS INC has shown strong performance in revenue growth over the past 5 years, with a 9.68% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 51.19%, APPLIED MATERIALS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 0.72, 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.
• 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 consistently achieved strong EBIT growth over the past 5 years, with a 11.19% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

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.

Overall AMAT gets a fundamental rating of 6 out of 10. We evaluated AMAT against 106 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent on profitability, but there are some minor concerns on its financial health. 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 quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.