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 62 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 has a correct valuation and a medium growth rate. These ratings would make 1AMAT suitable 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.
1AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1AMAT's Return On Assets of 19.97% is amongst the best of the industry. 1AMAT outperforms 88.06% of its industry peers.
1AMAT has a Return On Equity of 35.03%. This is amongst the best in the industry. 1AMAT outperforms 85.07% of its industry peers.
1AMAT has a better Return On Invested Capital (25.99%) than 88.06% 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 14.58%.
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
The Profit Margin of 1AMAT (23.88%) is better than 73.13% 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 30.14%, 1AMAT belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
The Gross Margin of 1AMAT (48.50%) is comparable to the rest of the industry.
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.
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
1AMAT has an Altman-Z score of 12.54. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.54, 1AMAT belongs to the top of the industry, outperforming 80.60% 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.
The Debt to FCF ratio of 1AMAT (1.08) is better than 71.64% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
1AMAT's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. 1AMAT outperforms 41.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.54 |
ROIC/WACC2.49
WACC10.45%
2.3 Liquidity
A Current Ratio of 2.50 indicates that 1AMAT has no problem at all paying its short term obligations.
1AMAT has a Current ratio (2.50) which is in line with its industry peers.
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 61.19% 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.
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
1AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 26.98 indicates a quite expensive valuation of 1AMAT.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.39, 1AMAT is valued at the same level.
A Price/Forward Earnings ratio of 26.25 indicates a quite expensive valuation of 1AMAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMAT is on the same level as its industry peers.
1AMAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 26.25 |
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 the industry average as 77.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.77 | ||
| EV/EBITDA | 22.01 |
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)9.75
PEG (5Y)1.53
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.
Compared to an average industry Dividend Yield of 0.79, 1AMAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, 1AMAT pays less dividend than the S&P500 average, which is at 1.87.
| 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
19.73% 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.
DP19.73%
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 Dividend1.46
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 | 26.98 | ||
| Fwd PE | 26.25 | ||
| P/S | 7.08 | ||
| P/FCF | 34.77 | ||
| P/OCF | 26.28 | ||
| P/B | 10.38 | ||
| P/tB | 13.05 | ||
| EV/EBITDA | 22.01 |
EPS(TTM)8.03
EY3.71%
EPS(NY)8.25
Fwd EY3.81%
FCF(TTM)6.23
FCFY2.88%
OCF(TTM)8.24
OCFY3.81%
SpS30.62
BVpS20.87
TBVpS16.61
PEG (NY)9.75
PEG (5Y)1.53
Graham Number61.41
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 | 12.54 |
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 26.98 and the Price/Book (PB) ratio is 10.38.
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.