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. 1AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
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.
In the past 5 years 1AMAT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.97%, 1AMAT belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
The Return On Equity of 1AMAT (35.03%) is better than 83.87% of its industry peers.
1AMAT has a better Return On Invested Capital (25.99%) than 87.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1AMAT is significantly above the industry average of 14.81%.
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
1AMAT's Profit Margin of 23.88% is fine compared to the rest of the industry. 1AMAT outperforms 77.42% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.14%, 1AMAT belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
1AMAT's Gross Margin of 48.50% is in line compared to the rest of the industry. 1AMAT outperforms 54.84% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
2.2 Solvency
1AMAT has an Altman-Z score of 12.49. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
1AMAT has a Altman-Z score of 12.49. This is amongst the best in the industry. 1AMAT outperforms 80.65% of its industry peers.
The Debt to FCF ratio of 1AMAT is 1.08, which is an excellent value as it means it would take 1AMAT, only 1.08 years of fcf income to pay off all of its debts.
1AMAT has a better Debt to FCF ratio (1.08) than 77.42% 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.
1AMAT has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.49 |
ROIC/WACC2.52
WACC10.31%
2.3 Liquidity
A Current Ratio of 2.50 indicates that 1AMAT has no problem at all paying 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 66.13% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that 1AMAT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.79, 1AMAT is doing good in the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
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.
1AMAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
1AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.52% yearly.
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.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y9.73%
EPS Next 5Y11.04%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y5.97%
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.
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
With a Price/Earnings ratio of 26.85, 1AMAT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1AMAT indicates a somewhat cheap valuation: 1AMAT is cheaper than 74.19% of the companies listed in the same industry.
1AMAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.18, which means the current valuation is very expensive for 1AMAT.
1AMAT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.40. 1AMAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 26.18 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA is on the same level as the industry average.
75.81% 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 | 34.58 | ||
| EV/EBITDA | 21.89 |
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)10.83
PEG (5Y)1.52
EPS Next 2Y8.57%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
1AMAT has a yearly dividend return of 0.74%, which is pretty low.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.14.
Compared to an average S&P500 Dividend Yield of 2.32, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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.
The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y9.73%
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 Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap172.59B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target203.46 (-6.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.48
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)19.93%
PT rev (3m)18.56%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 26.18 | ||
| P/S | 7.04 | ||
| P/FCF | 34.58 | ||
| P/OCF | 26.13 | ||
| P/B | 10.32 | ||
| P/tB | 12.97 | ||
| EV/EBITDA | 21.89 |
EPS(TTM)8.07
EY3.72%
EPS(NY)8.27
Fwd EY3.82%
FCF(TTM)6.27
FCFY2.89%
OCF(TTM)8.29
OCFY3.83%
SpS30.79
BVpS20.99
TBVpS16.7
PEG (NY)10.83
PEG (5Y)1.52
Graham Number61.73
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 | 12.49 |
F-Score6
WACC10.31%
ROIC/WACC2.52
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 Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y9.73%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y5.97%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y9.06%
EBIT Next 5Y10.49%
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 26.85 and the Price/Book (PB) ratio is 10.32.
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 2.48% in the next year.