APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - BIT:1AMAT - US0382221051 - Common Stock
142.78 EUR
+2.8 (+2%)
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 56 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, 1AMAT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1AMAT was profitable.
In the past year 1AMAT had a positive cash flow from operations.
Each year in the past 5 years 1AMAT has been profitable.
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 91.07% of the companies in the same industry.
1AMAT has a better Return On Equity (35.03%) than 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 28.12%, 1AMAT belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1AMAT is significantly above the industry average of 14.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 28.12% |
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
1AMAT's Profit Margin of 23.88% is fine compared to the rest of the industry. 1AMAT outperforms 73.21% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 30.14%, 1AMAT is doing good in the industry, outperforming 76.79% of the companies in the same industry.
1AMAT's Operating Margin has improved in the last couple of years.
1AMAT has a Gross Margin of 48.50%. This is in the better half of the industry: 1AMAT outperforms 60.71% of its industry peers.
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-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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1AMAT is creating value.
1AMAT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1AMAT has less shares outstanding
Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
2.2 Solvency
1AMAT has an Altman-Z score of 9.77. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
1AMAT has a Altman-Z score of 9.77. This is in the better half of the industry: 1AMAT outperforms 76.79% 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.
With a decent Debt to FCF ratio value of 1.08, 1AMAT is doing good in the industry, outperforming 73.21% of the companies in the same industry.
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 is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for 1AMAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 9.77 |
ROIC/WACC2.5
WACC11.24%
2.3 Liquidity
A Current Ratio of 2.50 indicates that 1AMAT has no problem at all paying its short term obligations.
The Current ratio of 1AMAT (2.50) is better than 62.50% of its industry peers.
A Quick Ratio of 1.79 indicates that 1AMAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.79, 1AMAT is in line with its industry, outperforming 58.93% of the companies in the same industry.
| 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 13.12% 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.
Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
Measured over the past years, 1AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 13.22% on average per year.
EPS 1Y (TTM)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
Based on estimates for the next years, 1AMAT will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.33%
Revenue Next Year4.61%
Revenue Next 2Y3.79%
Revenue Next 3Y5.25%
Revenue Next 5Y7.18%
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
1AMAT is valuated rather expensively with a Price/Earnings ratio of 17.67.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than 78.57% of the companies in the same industry.
1AMAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
1AMAT is valuated rather expensively with a Price/Forward Earnings ratio of 17.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMAT indicates a somewhat cheap valuation: 1AMAT is cheaper than 66.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1AMAT to the average of the S&P500 Index (22.70), we can say 1AMAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
Based on the Price/Free Cash Flow ratio, 1AMAT is valued cheaper than 83.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.12 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
1AMAT's 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)1.72
PEG (5Y)0.76
EPS Next 2Y6.31%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, 1AMAT has a reasonable but not impressive dividend return.
In the last 3 months the price of 1AMAT has falen by -38.27%. 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 1.29, 1AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of 1AMAT is nicely growing with an annual growth rate of 12.01%!
Dividend Growth(5Y)12.01%
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.
1AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
BIT:1AMAT (9/12/2025, 7:00:00 PM)
142.78
+2.8 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap113.74B
Analysts79.05
Price Target171.61 (20.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.24
Dividend Growth(5Y)12.01%
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)-1.12%
PT rev (3m)-4.97%
EPS NQ rev (1m)-10.89%
EPS NQ rev (3m)-9.74%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-8.47%
Revenue NQ rev (3m)-8.08%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 17.27 | ||
| P/S | 4.71 | ||
| P/FCF | 23.12 | ||
| P/OCF | 17.47 | ||
| P/B | 6.9 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)8.08
EY5.66%
EPS(NY)8.27
Fwd EY5.79%
FCF(TTM)6.18
FCFY4.32%
OCF(TTM)8.17
OCFY5.72%
SpS30.34
BVpS20.68
TBVpS16.46
PEG (NY)1.72
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 28.12% | ||
| ROICexc | 37.92% | ||
| ROICexgc | 47.29% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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-Score7
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 | 9.77 |
F-Score7
WACC11.24%
ROIC/WACC2.5
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)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.33%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.61%
Revenue Next 2Y3.79%
Revenue Next 3Y5.25%
Revenue Next 5Y7.18%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year16.07%
EBIT Next 3Y9.91%
EBIT Next 5Y6.69%
FCF growth 1Y-16.6%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-3.71%
OCF growth 3Y16.83%
OCF growth 5Y21.72%