APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
273.95 EUR
-0.75 (-0.27%)
We assign a fundamental rating of 6 out of 10 to 1AMAT. 1AMAT was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1AMAT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make 1AMAT a good candidate 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 Return On Assets of 19.28%. This is amongst the best in the industry. 1AMAT outperforms 85.51% of its industry peers.
- 1AMAT's Return On Equity of 34.28% is amongst the best of the industry. 1AMAT outperforms 81.16% of its industry peers.
- The Return On Invested Capital of 1AMAT (24.38%) is better than 85.51% 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 14.31%.
| 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
- The Profit Margin of 1AMAT (24.67%) is better than 68.12% of its industry peers.
- 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 72.46% of its industry peers.
- 1AMAT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 48.67%, 1AMAT perfoms like the industry average, outperforming 44.93% of the companies in the same 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
- 1AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1AMAT has less shares outstanding
- 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 13.86. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
- 1AMAT's Altman-Z score of 13.86 is amongst the best of the industry. 1AMAT outperforms 82.61% 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.
- 1AMAT has a better Debt to FCF ratio (1.15) than 69.57% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.32, 1AMAT perfoms like the industry average, outperforming 40.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 13.86 |
ROIC/WACC2.25
WACC10.86%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that 1AMAT has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.61, 1AMAT is in the better half of the industry, outperforming 62.32% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.90, 1AMAT is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
| 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.
- 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.
- 1AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
- 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 Y3.51%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
EPS Next 5Y11.04%
Revenue Next Year2.4%
Revenue Next 2Y8.26%
Revenue Next 3Y6.88%
Revenue Next 5Y6.57%
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 34.42, 1AMAT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- 1AMAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 33.25, the valuation of 1AMAT can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1AMAT.
- 1AMAT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.42 | ||
| Fwd PE | 33.25 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
- 1AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 72.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.33 | ||
| EV/EBITDA | 28.62 |
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)9.8
PEG (5Y)1.95
EPS Next 2Y12.63%
EPS Next 3Y9.69%
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 0.74, 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 1.82.
| 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.
- The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
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 34.42 and the Price/Book (PB) ratio is 12.65.
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 3.51% in the next year.