APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
273.95 EUR
-0.75 (-0.27%)
Overall 1AMAT gets a fundamental rating of 6 out of 10. We evaluated 1AMAT against 68 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. While showing a medium growth rate, 1AMAT is valued expensive at the moment. 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.
- In the past 5 years 1AMAT always reported a positive cash flow from operatings.
1.2 Ratios
- 1AMAT has a better Return On Assets (19.28%) than 85.29% of its industry peers.
- With an excellent Return On Equity value of 34.28%, 1AMAT belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
- 1AMAT has a Return On Invested Capital of 24.38%. This is amongst the best in the industry. 1AMAT outperforms 85.29% 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 14.62%.
| 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
- Looking at the Profit Margin, with a value of 24.67%, 1AMAT is in the better half of 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's Operating Margin of 29.86% is fine compared to the rest of the industry. 1AMAT outperforms 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 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 | 29.86% | ||
| 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
- 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.
- Compared to 5 years ago, 1AMAT has less shares outstanding
- Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
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.
- With an excellent Altman-Z score value of 13.76, 1AMAT belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- 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.
- 1AMAT has a better Debt to FCF ratio (1.15) 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/WACC2.27
WACC10.76%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that 1AMAT has no problem at all paying its short term obligations.
- 1AMAT has a Current ratio of 2.61. This is in the better half of the industry: 1AMAT outperforms 66.18% of its industry peers.
- 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.
- 1AMAT has a Quick ratio of 1.90. This is in the better half of the industry: 1AMAT outperforms 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.
- 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
- 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 Y2.89%
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
- 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
- Based on the Price/Earnings ratio of 34.03, the valuation of 1AMAT can be described as expensive.
- 66.18% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
- 1AMAT is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 33.09 indicates a quite expensive valuation of 1AMAT.
- 1AMAT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AMAT is more expensive than 60.29% of the companies in the same industry.
- 1AMAT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.03 | ||
| Fwd PE | 33.09 |
4.2 Price Multiples
- 1AMAT's Enterprise Value to EBITDA ratio is in line with the industry average.
- 1AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AMAT is 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.
- The excellent profitability rating of 1AMAT 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
- With a yearly dividend of 0.58%, 1AMAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.70, 1AMAT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.58, 1AMAT pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
- The dividend of 1AMAT is nicely growing with an annual growth rate of 14.79%!
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.