APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
BIT:1AMAT - Euronext Milan - US0382221051 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1AMAT. 1AMAT was compared to 58 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 decent growth rate and is not valued too expensively. These ratings would make 1AMAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
1AMAT had positive earnings in the past year.
1AMAT had a positive operating cash flow in the past year.
1AMAT had positive earnings in each of the past 5 years.
1AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.86%, 1AMAT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.77%, 1AMAT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
1AMAT has a Return On Invested Capital of 26.02%. This is amongst the best in the industry. 1AMAT outperforms 92.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AMAT is significantly above the industry average of 16.14%.
The last Return On Invested Capital (26.02%) for 1AMAT is well below the 3 year average (30.16%), which needs to be investigated, but indicates that 1AMAT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROIC | 26.02% |
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 26.41% is fine compared to the rest of the industry. 1AMAT outperforms 78.18% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
1AMAT's Operating Margin of 28.95% is fine compared to the rest of the industry. 1AMAT outperforms 74.55% of its industry peers.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
Looking at the Gross Margin, with a value of 47.46%, 1AMAT is in line with its industry, outperforming 50.91% of the companies in the same industry.
1AMAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1AMAT is creating value.
The number of shares outstanding for 1AMAT has been reduced compared to 1 year ago.
Compared to 5 years ago, 1AMAT has less shares outstanding
1AMAT has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1AMAT is 0.84, which is an excellent value as it means it would take 1AMAT, only 0.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1AMAT (0.84) is better than 85.45% of its industry peers.
1AMAT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 1AMAT (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC11.74%
2.3 Liquidity
A Current Ratio of 2.51 indicates that 1AMAT has no problem at all paying its short term obligations.
1AMAT's Current ratio of 2.51 is fine compared to the rest of the industry. 1AMAT outperforms 61.82% of its industry peers.
A Quick Ratio of 1.87 indicates that 1AMAT should not have too much problems paying its short term obligations.
1AMAT has a better Quick ratio (1.87) than 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.33% 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.
The Revenue has been growing slightly by 4.34% in the past year.
The Revenue has been growing by 13.22% on average over the past years. This is quite good.
EPS 1Y (TTM)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
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 11.44% on average per year.
1AMAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.06% yearly.
EPS Next Y9.86%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
EPS Next 5Y11.44%
Revenue Next Year6.52%
Revenue Next 2Y6.56%
Revenue Next 3Y6.54%
Revenue Next 5Y8.06%
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
With a Price/Earnings ratio of 17.62, 1AMAT is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1AMAT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1AMAT to the average of the S&P500 Index (29.35), we can say 1AMAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.15, the valuation of 1AMAT can be described as correct.
1AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 65.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1AMAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1AMAT is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 17.52 |
4.3 Compensation for Growth
The 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)1.79
PEG (5Y)0.76
EPS Next 2Y9.36%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
1AMAT has a yearly dividend return of 0.91%, which is pretty low.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.50.
Compared to an average S&P500 Dividend Yield of 2.33, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
16.61% 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.
DP16.61%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
BIT:1AMAT (3/3/2025, 7:00:00 PM)
149.96
-22.98 (-13.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap121.87B
Analysts79.05
Price Target204.19 (36.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend1.44
Dividend Growth(5Y)12.01%
DP16.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.71%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)2.71%
Max EPS beat(4)9.58%
EPS beat(8)8
Avg EPS beat(8)4.97%
EPS beat(12)10
Avg EPS beat(12)4.7%
EPS beat(16)13
Avg EPS beat(16)4.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)-1.38%
PT rev (3m)-5.67%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)1.88%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-4.63%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-4.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.15 | ||
| P/S | 4.69 | ||
| P/FCF | 17.03 | ||
| P/OCF | 14.7 | ||
| P/B | 6.71 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 17.52 |
EPS(TTM)8.51
EY5.67%
EPS(NY)9.9
Fwd EY6.6%
FCF(TTM)8.8
FCFY5.87%
OCF(TTM)10.2
OCFY6.8%
SpS31.95
BVpS22.34
TBVpS17.66
PEG (NY)1.79
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROCE | 30.33% | ||
| ROIC | 26.02% | ||
| ROICexc | 40.29% | ||
| ROICexgc | 52.36% | ||
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% | ||
| FCFM | 27.55% |
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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 303.57% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 38.38 | ||
| Cash Conversion | 105.06% | ||
| Profit Quality | 104.32% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | N/A |
F-Score6
WACC11.74%
ROIC/WACC2.22
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)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
EPS Next Y9.86%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
EPS Next 5Y11.44%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
Revenue Next Year6.52%
Revenue Next 2Y6.56%
Revenue Next 3Y6.54%
Revenue Next 5Y8.06%
EBIT growth 1Y2.78%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.81%
EBIT Next 3Y10.63%
EBIT Next 5YN/A
FCF growth 1Y-1.41%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-0.26%
OCF growth 3Y16.83%
OCF growth 5Y21.72%