APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
273.95 EUR
-0.75 (-0.27%)
1AMAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. 1AMAT is valied quite expensively at the moment, while it does show a decent growth rate. This makes 1AMAT very considerable 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.
- Each year in the past 5 years 1AMAT has been profitable.
- In the past 5 years 1AMAT always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 19.28%, 1AMAT belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- 1AMAT has a better Return On Equity (34.28%) than 80.88% of its industry peers.
- With an excellent Return On Invested Capital value of 24.38%, 1AMAT belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- 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
- 1AMAT has a better Profit Margin (24.67%) than 70.59% of its industry peers.
- In the last couple of years the Profit Margin of 1AMAT has grown nicely.
- 1AMAT has a Operating Margin of 29.86%. This is in the better half of the industry: 1AMAT outperforms 75.00% of its industry peers.
- 1AMAT's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1AMAT (48.67%) is comparable to the rest of the industry.
- 1AMAT's Gross Margin has improved in the last couple of years.
| 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
- 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
- 1AMAT has a better debt/assets ratio than last year.
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.
- 1AMAT has a Altman-Z score of 13.76. This is amongst the best in the industry. 1AMAT outperforms 85.29% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.15, 1AMAT is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
- 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 | 1.15 | ||
| Altman-Z | 13.76 |
ROIC/WACC2.26
WACC10.78%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that 1AMAT has no problem at all paying its short term obligations.
- The Current ratio of 1AMAT (2.61) is better than 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.
- With a decent Quick ratio value of 1.90, 1AMAT is doing good in the industry, outperforming 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
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.
- Measured over the past years, 1AMAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
- Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
- Measured over the past years, 1AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.52% on average per year.
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
- Based on estimates for the next years, 1AMAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
- 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.
- 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 34.03 indicates a quite expensive valuation of 1AMAT.
- 66.18% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1AMAT is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 33.09, 1AMAT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, 1AMAT is valued a bit more expensive than 60.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1AMAT is valued slightly more expensive when compared to this.
| 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.
- 73.53% 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 | 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
- 1AMAT has a yearly dividend return of 0.58%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.72, 1AMAT pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1AMAT's dividend is way lower than the S&P500 average.
| 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
- 1AMAT pays out 19.78% of its income as dividend. This is a 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.