APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
273.95 EUR
-0.75 (-0.27%)
We assign a fundamental rating of 6 out of 10 to 1AMAT. 1AMAT was compared to 68 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1AMAT is quite expensive at the moment. It does show a decent growth rate. With these ratings, 1AMAT could be worth investigating further 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.
- 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 85.29% of the companies in the same industry.
- 1AMAT has a better Return On Equity (34.28%) than 80.88% of its industry peers.
- 1AMAT's Return On Invested Capital of 24.38% is amongst the best of the industry. 1AMAT outperforms 85.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1AMAT is significantly above the industry average of 14.62%.
| 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
- With a decent Profit Margin value of 24.67%, 1AMAT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1AMAT has grown nicely.
- 1AMAT has a better Operating Margin (29.86%) than 75.00% of its industry peers.
- 1AMAT's Operating Margin has improved in the last couple of years.
- 1AMAT has a Gross Margin (48.67%) which is in line with its industry peers.
- 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.
- The number of shares outstanding for 1AMAT has been reduced compared to 1 year ago.
- The number of shares outstanding for 1AMAT has been reduced compared to 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 13.76. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
- 1AMAT has a Altman-Z score of 13.76. This is amongst the best in the industry. 1AMAT outperforms 85.29% 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 70.59% 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.
- 1AMAT's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. 1AMAT outperforms 44.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 13.76 |
ROIC/WACC2.26
WACC10.78%
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.
- With a decent Current ratio value of 2.61, 1AMAT is doing good in the industry, outperforming 66.18% of the companies in the same industry.
- 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.
- The Quick ratio of 1AMAT (1.90) is better than 69.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
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.
- 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
- 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 Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue Next Year2.32%
Revenue Next 2Y8%
Revenue Next 3Y6.59%
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 34.03 indicates a quite expensive valuation of 1AMAT.
- 66.18% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1AMAT is valued a bit more expensive.
- 1AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 33.09.
- Based on the Price/Forward Earnings ratio, 1AMAT is valued a bit more expensive than 60.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, 1AMAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.03 | ||
| Fwd PE | 33.09 |
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 a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.84 | ||
| EV/EBITDA | 28.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AMAT does not grow enough to justify the current Price/Earnings ratio.
- 1AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.76
PEG (5Y)1.93
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
- 1AMAT has a yearly dividend return of 0.58%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.72, 1AMAT pays a bit more dividend than its industry peers.
- 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
- 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
- 19.78% of the earnings are spent on dividend by 1AMAT. This is a low number and sustainable payout ratio.
- 1AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
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 34.03 and the Price/Book (PB) ratio is 12.51.
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 2.89% in the next year.