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.

Looking into the quality metrics of APPLIED MATERIALS INC

• 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.
• The ROIC excluding cash and goodwill of APPLIED MATERIALS INC stands at 44.68%, 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.
• The Debt/Free Cash Flow Ratio of APPLIED MATERIALS INC stands at 0.83, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of APPLIED MATERIALS INC stands at 91.93%, 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 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.
• 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.

Fundamental analysis of NASDAQ:AMAT

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 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.

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.