APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
BIT:1AMAT - Euronext Milan - US0382221051 - Common Stock - Currency: EUR
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 53 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1AMAT has a decent growth rate and is not valued too expensively. This makes 1AMAT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1AMAT was profitable.
1AMAT had a positive operating cash flow in the past year.
Each year in the past 5 years 1AMAT has been profitable.
1AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1AMAT (19.03%) is better than 90.57% of its industry peers.
Looking at the Return On Equity, with a value of 34.06%, 1AMAT is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
1AMAT's Return On Invested Capital of 27.05% is amongst the best of the industry. 1AMAT outperforms 92.45% of its industry peers.
1AMAT had an Average Return On Invested Capital over the past 3 years of 30.16%. This is significantly above the industry average of 15.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROIC | 27.05% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
1.3 Margins
The Profit Margin of 1AMAT (22.95%) is better than 71.70% of its industry peers.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
Looking at the Operating Margin, with a value of 29.22%, 1AMAT is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
1AMAT has a Gross Margin (47.73%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% |
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1AMAT is creating value.
Compared to 1 year ago, 1AMAT has less shares outstanding
1AMAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.03 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
1AMAT has a better Altman-Z score (9.03) than 86.79% of its industry peers.
The Debt to FCF ratio of 1AMAT is 1.05, which is an excellent value as it means it would take 1AMAT, only 1.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1AMAT (1.05) is better than 79.25% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that 1AMAT is not too dependend on debt financing.
1AMAT's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. 1AMAT outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 9.03 |
ROIC/WACC2.48
WACC10.89%
2.3 Liquidity
1AMAT has a Current Ratio of 2.68. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
1AMAT has a Current ratio of 2.68. This is in the better half of the industry: 1AMAT outperforms 66.04% of its industry peers.
1AMAT has a Quick Ratio of 1.96. This is a normal value and indicates that 1AMAT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.96, 1AMAT is doing good in the industry, outperforming 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.33% over the past year.
Measured over the past years, 1AMAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.21% on average per year.
1AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.34%.
The Revenue has been growing by 13.22% on average over the past years. This is quite good.
EPS 1Y (TTM)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
3.2 Future
1AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.23% yearly.
1AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.14% yearly.
EPS Next Y9.67%
EPS Next 2Y8.81%
EPS Next 3Y8.91%
EPS Next 5Y10.23%
Revenue Next Year6.26%
Revenue Next 2Y6.33%
Revenue Next 3Y6.44%
Revenue Next 5Y7.14%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.30 indicates a correct valuation of 1AMAT.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than 64.15% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1AMAT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.16, 1AMAT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMAT indicates a somewhat cheap valuation: 1AMAT is cheaper than 73.58% of the companies listed in the same industry.
1AMAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA ratio is in line with the industry average.
86.79% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.87 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1AMAT may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)0.7
EPS Next 2Y8.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
1AMAT has a Yearly Dividend Yield of 1.34%.
In the last 3 months the price of 1AMAT has falen by -34.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.76, 1AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of 1AMAT grows each year by 12.01%, which is quite nice.
Dividend Growth(5Y)12.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.74% of the earnings are spent on dividend by 1AMAT. This is a low number and sustainable payout ratio.
The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.74%
EPS Next 2Y8.81%
EPS Next 3Y8.91%
BIT:1AMAT (4/15/2025, 7:00:00 PM)
127.62
+3.58 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap103.68B
Analysts80
Price Target191.75 (50.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.27
Dividend Growth(5Y)12.01%
DP19.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.97%
Min EPS beat(2)2.11%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)2.92%
Min EPS beat(4)2.11%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.87%
EPS beat(12)11
Avg EPS beat(12)4.88%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)-0.31%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-5.67%
PT rev (3m)-7.39%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.16 | ||
| P/S | 4.27 | ||
| P/FCF | 19.87 | ||
| P/OCF | 16.21 | ||
| P/B | 6.33 | ||
| P/tB | 8.07 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)7.83
EY6.14%
EPS(NY)9.01
Fwd EY7.06%
FCF(TTM)6.42
FCFY5.03%
OCF(TTM)7.87
OCFY6.17%
SpS29.9
BVpS20.15
TBVpS15.82
PEG (NY)1.69
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROCE | 31.54% | ||
| ROIC | 27.05% | ||
| ROICexc | 39.27% | ||
| ROICexgc | 50.36% | ||
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% | ||
| FCFM | 21.48% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
ROICexc(3y)39.77%
ROICexc(5y)39.3%
ROICexgc(3y)51.88%
ROICexgc(5y)52.37%
ROCE(3y)34.44%
ROCE(5y)32.94%
ROICexcg growth 3Y-7.9%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y-6.23%
ROICexc growth 5Y6.64%
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 330.54% | ||
| Cap/Sales | 4.86% | ||
| Interest Coverage | 36.21 | ||
| Cash Conversion | 85.8% | ||
| Profit Quality | 93.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.03 |
F-Score6
WACC10.89%
ROIC/WACC2.48
Cap/Depr(3y)231.86%
Cap/Depr(5y)195.47%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.39%
Profit Quality(3y)95.26%
Profit Quality(5y)92.06%
High Growth Momentum
Growth
EPS 1Y (TTM)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
EPS Next Y9.67%
EPS Next 2Y8.81%
EPS Next 3Y8.91%
EPS Next 5Y10.23%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
Revenue Next Year6.26%
Revenue Next 2Y6.33%
Revenue Next 3Y6.44%
Revenue Next 5Y7.14%
EBIT growth 1Y5.54%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.2%
EBIT Next 3Y10.02%
EBIT Next 5Y6.98%
FCF growth 1Y45.43%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y45.22%
OCF growth 3Y16.83%
OCF growth 5Y21.72%