APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
BIT:1AMAT - Euronext Milan - US0382221051 - Common Stock - Currency: EUR
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 51 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 has a decent growth rate and is not valued too expensively. With these ratings, 1AMAT could be worth investigating further 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
The Return On Assets of 1AMAT (20.09%) is better than 94.83% of its industry peers.
Looking at the Return On Equity, with a value of 35.64%, 1AMAT belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
1AMAT has a better Return On Invested Capital (27.88%) than 94.83% of its industry peers.
1AMAT had an Average Return On Invested Capital over the past 3 years of 30.16%. This is significantly above the industry average of 15.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROIC | 27.88% |
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
Looking at the Profit Margin, with a value of 24.06%, 1AMAT is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
1AMAT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.66%, 1AMAT is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
1AMAT's Operating Margin has improved in the last couple of years.
The Gross Margin of 1AMAT (48.14%) 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 | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% |
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
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.
Compared to 5 years ago, 1AMAT has less shares outstanding
The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.02 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 10.02, 1AMAT is doing good in the industry, outperforming 75.86% of the companies in the same industry.
1AMAT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.07, 1AMAT is doing good in the industry, outperforming 77.59% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that 1AMAT is not too dependend on debt financing.
1AMAT has a worse Debt to Equity ratio (0.33) than 63.79% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1AMAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 10.02 |
ROIC/WACC2.79
WACC10%
2.3 Liquidity
1AMAT has a Current Ratio of 2.46. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.46, 1AMAT perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that 1AMAT should not have too much problems paying its short term obligations.
1AMAT has a Quick ratio of 1.76. This is comparable to the rest of the industry: 1AMAT outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.77% over the past year.
1AMAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 5.99% in the last year.
1AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.22% yearly.
EPS 1Y (TTM)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.18% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
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
With a Price/Earnings ratio of 21.50, 1AMAT is valued on the expensive side.
75.86% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1AMAT to the average of the S&P500 Index (27.30), we can say 1AMAT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.26, the valuation of 1AMAT can be described as rather expensive.
1AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 68.97% of the companies in the same industry.
1AMAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMAT indicates a rather cheap valuation: 1AMAT is cheaper than 81.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.12 | ||
| EV/EBITDA | 15.93 |
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)1.86
PEG (5Y)0.93
EPS Next 2Y8.99%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
1AMAT has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
The stock price of 1AMAT dropped by -21.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.11.
With a Dividend Yield of 1.00, 1AMAT pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of 1AMAT grows each year by 12.01%, which is quite nice.
Dividend Growth(5Y)12.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.40% 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.
DP19.4%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
BIT:1AMAT (7/11/2025, 7:00:00 PM)
169.24
+17.72 (+11.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap135.82B
Analysts79.51
Price Target175.9 (3.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.23
Dividend Growth(5Y)12.01%
DP19.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.7%
Min EPS beat(2)1.29%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)2.49%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.2%
EPS beat(12)12
Avg EPS beat(12)5.37%
EPS beat(16)13
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)-2.6%
PT rev (3m)-13.46%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.26 | ||
| P/S | 5.66 | ||
| P/FCF | 27.12 | ||
| P/OCF | 21.32 | ||
| P/B | 8.38 | ||
| P/tB | 10.62 | ||
| EV/EBITDA | 15.93 |
EPS(TTM)7.87
EY4.65%
EPS(NY)8.79
Fwd EY5.19%
FCF(TTM)6.24
FCFY3.69%
OCF(TTM)7.94
OCFY4.69%
SpS29.91
BVpS20.19
TBVpS15.93
PEG (NY)1.86
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROCE | 32.5% | ||
| ROIC | 27.88% | ||
| ROICexc | 37.43% | ||
| ROICexgc | 46.97% | ||
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% | ||
| FCFM | 20.87% |
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-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 386.2% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 37.36 | ||
| Cash Conversion | 85.26% | ||
| Profit Quality | 86.73% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 10.02 |
F-Score7
WACC10%
ROIC/WACC2.79
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)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
EBIT growth 1Y8.89%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.87%
EBIT Next 3Y9.95%
EBIT Next 5Y6.82%
FCF growth 1Y-0.88%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y8.25%
OCF growth 3Y16.83%
OCF growth 5Y21.72%