APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
273.95 EUR
-0.75 (-0.27%)
Overall 1AMAT gets a fundamental rating of 6 out of 10. We evaluated 1AMAT against 69 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. While showing a medium growth rate, 1AMAT is valued expensive at the moment. These ratings could make 1AMAT a good candidate 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.
- In the past 5 years 1AMAT has always 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 19.28%, 1AMAT belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- With an excellent Return On Equity value of 34.28%, 1AMAT belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 24.38%, 1AMAT belongs to the best of the industry, outperforming 86.96% 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 14.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROIC | 24.38% |
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's Profit Margin of 24.67% is fine compared to the rest of the industry. 1AMAT outperforms 69.57% 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 29.86%, 1AMAT is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
- 1AMAT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 48.67%, 1AMAT is in line with its industry, outperforming 46.38% of the companies in the same industry.
- 1AMAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% |
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
- 1AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 1AMAT has less shares outstanding than it did 1 year ago.
- 1AMAT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 13.98 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
- 1AMAT has a Altman-Z score of 13.98. This is amongst the best in the industry. 1AMAT outperforms 82.61% of its industry peers.
- 1AMAT has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
- The Debt to FCF ratio of 1AMAT (1.15) is better than 71.01% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
- 1AMAT has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: 1AMAT outperforms 42.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 13.98 |
ROIC/WACC2.25
WACC10.86%
2.3 Liquidity
- 1AMAT has a Current Ratio of 2.61. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
- 1AMAT's Current ratio of 2.61 is fine compared to the rest of the industry. 1AMAT outperforms 63.77% of its industry peers.
- 1AMAT has a Quick Ratio of 1.90. 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 1.90 is fine compared to the rest of the industry. 1AMAT outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
- 1AMAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.78%, which is quite good.
- 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.
- 1AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
- 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
- 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.
- Based on estimates for the next years, 1AMAT will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y3.51%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
EPS Next 5Y11.04%
Revenue Next Year2.4%
Revenue Next 2Y8.26%
Revenue Next 3Y6.88%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 34.81, the valuation of 1AMAT can be described as expensive.
- Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than 68.12% of the companies in the same industry.
- 1AMAT is valuated rather expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- 1AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 33.64.
- 1AMAT's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of 1AMAT to the average of the S&P500 Index (25.83), we can say 1AMAT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.81 | ||
| Fwd PE | 33.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
- 73.91% 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 | 45.86 | ||
| EV/EBITDA | 28.96 |
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)9.92
PEG (5Y)1.97
EPS Next 2Y12.63%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.58%, 1AMAT is not a good candidate for dividend investing.
- 1AMAT's Dividend Yield is comparable with the industry average which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
- The dividend of 1AMAT is nicely growing with an annual growth rate of 14.79%!
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1AMAT pays out 19.78% 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.
DP19.78%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
APPLIED MATERIALS INC / 1AMAT.MI FAQ
Can you provide the ChartMill fundamental rating for APPLIED MATERIALS INC?
ChartMill assigns a fundamental rating of 6 / 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 8 / 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 34.81 and the Price/Book (PB) ratio is 12.8.
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 3.51% in the next year.