APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
216.65 EUR
+12.85 (+6.31%)
1AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT gets an excellent profitability rating and is at the same time showing great financial health properties. 1AMAT has a correct valuation and a medium growth rate. This makes 1AMAT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1AMAT had positive earnings in the past year.
In the past year 1AMAT had a positive cash flow from operations.
1AMAT had positive earnings in each of the past 5 years.
In the past 5 years 1AMAT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1AMAT (19.97%) is better than 87.69% of its industry peers.
The Return On Equity of 1AMAT (35.03%) is better than 84.62% of its industry peers.
1AMAT's Return On Invested Capital of 25.99% is amongst the best of the industry. 1AMAT outperforms 87.69% of its industry peers.
1AMAT had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 15.14%.
The last Return On Invested Capital (25.99%) for 1AMAT is above the 3 year average (25.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 25.99% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
1.3 Margins
1AMAT has a Profit Margin of 23.88%. This is in the better half of the industry: 1AMAT outperforms 73.85% of its industry peers.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
1AMAT has a better Operating Margin (30.14%) than 80.00% of its industry peers.
1AMAT's Operating Margin has improved in the last couple of years.
1AMAT has a Gross Margin (48.50%) 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 | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
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
1AMAT has an Altman-Z score of 12.53. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
1AMAT's Altman-Z score of 12.53 is fine compared to the rest of the industry. 1AMAT outperforms 78.46% of its industry peers.
1AMAT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
The Debt to FCF ratio of 1AMAT (1.08) is better than 73.85% of its industry peers.
1AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 1AMAT (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.53 |
ROIC/WACC2.49
WACC10.45%
2.3 Liquidity
1AMAT has a Current Ratio of 2.50. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.50, 1AMAT is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that 1AMAT should not have too much problems paying its short term obligations.
1AMAT has a better Quick ratio (1.79) than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% over the past year.
Measured over the past years, 1AMAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
The Revenue has been growing slightly by 4.39% in the past year.
The Revenue has been growing by 10.52% on average over the past years. This is quite good.
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
3.2 Future
Based on estimates for the next years, 1AMAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
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
The Price/Earnings ratio is 26.95, which means the current valuation is very expensive for 1AMAT.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than 73.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. 1AMAT is around the same levels.
Based on the Price/Forward Earnings ratio of 26.22, the valuation of 1AMAT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMAT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1AMAT to the average of the S&P500 Index (23.78), we can say 1AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 26.22 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1AMAT is valued cheaper than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.72 | ||
| EV/EBITDA | 21.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1AMAT may justify a higher PE ratio.
PEG (NY)9.74
PEG (5Y)1.53
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
1AMAT has a yearly dividend return of 0.68%, which is pretty low.
1AMAT's Dividend Yield is comparable with the industry average which is at 1.18.
With a Dividend Yield of 0.68, 1AMAT pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of 1AMAT grows each year by 14.79%, which is quite nice.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AMAT pays out 19.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
BIT:1AMAT (12/1/2025, 7:00:00 PM)
216.65
+12.85 (+6.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.66%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap172.59B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.45 (1.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.47
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.29%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.57%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)3.7%
EPS beat(12)12
Avg EPS beat(12)5.12%
EPS beat(16)13
Avg EPS beat(16)3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)13.86%
PT rev (3m)27.88%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 26.22 | ||
| P/S | 7.07 | ||
| P/FCF | 34.72 | ||
| P/OCF | 26.24 | ||
| P/B | 10.37 | ||
| P/tB | 13.03 | ||
| EV/EBITDA | 21.98 |
EPS(TTM)8.04
EY3.71%
EPS(NY)8.26
Fwd EY3.81%
FCF(TTM)6.24
FCFY2.88%
OCF(TTM)8.26
OCFY3.81%
SpS30.66
BVpS20.9
TBVpS16.63
PEG (NY)9.74
PEG (5Y)1.53
Graham Number61.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 25.99% | ||
| ROICexc | 35.05% | ||
| ROICexgc | 43.72% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
ROICexc(3y)36.63%
ROICexc(5y)37.97%
ROICexgc(3y)47.26%
ROICexgc(5y)49.64%
ROCE(3y)31.01%
ROCE(5y)34.04%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y3.53%
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 436.66% | ||
| Cap/Sales | 6.58% | ||
| Interest Coverage | 36.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 85.23% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 12.53 |
F-Score6
WACC10.45%
ROIC/WACC2.49
Cap/Depr(3y)345.96%
Cap/Depr(5y)276.93%
Cap/Sales(3y)5.51%
Cap/Sales(5y)4.49%
Profit Quality(3y)98.84%
Profit Quality(5y)89.65%
High Growth Momentum
Growth
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year6.89%
EBIT Next 3Y9.34%
EBIT Next 5Y10.57%
FCF growth 1Y-11.3%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y0.63%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / 1AMAT.MI FAQ
Can you provide the ChartMill fundamental rating for APPLIED MATERIALS INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1AMAT.MI.
What is the valuation status of APPLIED MATERIALS INC (1AMAT.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (1AMAT.MI). This can be considered as Fairly Valued.
What is the profitability of 1AMAT stock?
APPLIED MATERIALS INC (1AMAT.MI) has a profitability rating of 9 / 10.
What is the valuation of APPLIED MATERIALS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLIED MATERIALS INC (1AMAT.MI) is 26.95 and the Price/Book (PB) ratio is 10.37.
What is the expected EPS growth for APPLIED MATERIALS INC (1AMAT.MI) stock?
The Earnings per Share (EPS) of APPLIED MATERIALS INC (1AMAT.MI) is expected to grow by 2.77% in the next year.