APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
251.15 EUR
-2.25 (-0.89%)
1AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making 1AMAT a very profitable company, without any liquidiy or solvency issues. 1AMAT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make 1AMAT suitable 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.
Each year in the past 5 years 1AMAT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.97%, 1AMAT belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
The Return On Equity of 1AMAT (35.03%) is better than 84.51% of its industry peers.
1AMAT has a Return On Invested Capital of 25.99%. This is amongst the best in the industry. 1AMAT outperforms 87.32% 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 13.85%.
The 3 year average ROIC (25.04%) for 1AMAT is below the current ROIC(25.99%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 23.88%, 1AMAT is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
1AMAT's Operating Margin of 30.14% is fine compared to the rest of the industry. 1AMAT outperforms 77.46% of its industry peers.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
Looking at the Gross Margin, with a value of 48.50%, 1AMAT is in line with its industry, outperforming 49.30% of the companies in the same industry.
1AMAT's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for 1AMAT has been reduced compared to 1 year ago.
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 13.78 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.78, 1AMAT belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
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.
1AMAT's Debt to FCF ratio of 1.08 is fine compared to the rest of the industry. 1AMAT outperforms 70.42% 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.
With a Debt to Equity ratio value of 0.32, 1AMAT perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 13.78 |
ROIC/WACC2.43
WACC10.69%
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.
Looking at the Current ratio, with a value of 2.50, 1AMAT is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
1AMAT has a Quick Ratio of 1.79. This is a normal value and indicates that 1AMAT is financially healthy and should not expect problems in meeting its short term obligations.
1AMAT's Quick ratio of 1.79 is fine compared to the rest of the industry. 1AMAT outperforms 61.97% 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.
The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
Measured over the past years, 1AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.52% on average per year.
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
The Earnings Per Share is expected to grow by 11.04% on average over the next years. This is quite good.
1AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
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
A Price/Earnings ratio of 31.04 indicates a quite expensive valuation of 1AMAT.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. 1AMAT is around the same levels.
A Price/Forward Earnings ratio of 30.20 indicates a quite expensive valuation of 1AMAT.
The rest of the industry has a similar Price/Forward Earnings ratio as 1AMAT.
1AMAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 30.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
1AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40 | ||
| EV/EBITDA | 25.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.22
PEG (5Y)1.76
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 1AMAT is not a good candidate for dividend investing.
1AMAT's Dividend Yield is a higher than the industry average which is at 0.79.
With a Dividend Yield of 0.68, 1AMAT pays less dividend than the S&P500 average, which is at 1.92.
| 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 (1/7/2026, 7:00:00 PM)
251.15
-2.25 (-0.89%)
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 Cap200.08B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.45 (-12.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.46
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 | 31.04 | ||
| Fwd PE | 30.2 | ||
| P/S | 8.14 | ||
| P/FCF | 40 | ||
| P/OCF | 30.23 | ||
| P/B | 11.94 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 25.38 |
EPS(TTM)8.09
EY3.22%
EPS(NY)8.32
Fwd EY3.31%
FCF(TTM)6.28
FCFY2.5%
OCF(TTM)8.31
OCFY3.31%
SpS30.85
BVpS21.03
TBVpS16.73
PEG (NY)11.22
PEG (5Y)1.76
Graham Number61.87
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 | 13.78 |
F-Score6
WACC10.69%
ROIC/WACC2.43
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.
Can you provide the valuation status for APPLIED MATERIALS INC?
ChartMill assigns a valuation rating of 3 / 10 to APPLIED MATERIALS INC (1AMAT.MI). This can be considered as Overvalued.
Can you provide the profitability details for APPLIED MATERIALS INC?
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 31.04 and the Price/Book (PB) ratio is 11.94.
What is the earnings growth outlook for APPLIED MATERIALS INC?
The Earnings per Share (EPS) of APPLIED MATERIALS INC (1AMAT.MI) is expected to grow by 2.77% in the next year.