APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
216.65 EUR
+12.85 (+6.31%)
1AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 57 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT gets an excellent profitability rating and is at the same time showing great financial health properties. 1AMAT is not valued too expensively and it also shows a decent growth rate. 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.
1AMAT had a positive operating cash flow in the past year.
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
The Return On Assets of 1AMAT (19.97%) is better than 88.06% of its industry peers.
1AMAT has a Return On Equity of 35.03%. This is amongst the best in the industry. 1AMAT outperforms 85.07% of its industry peers.
1AMAT has a better Return On Invested Capital (25.99%) than 88.06% 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 14.06%.
The last Return On Invested Capital (25.99%) for 1AMAT is above the 3 year average (25.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 25.99% |
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 (23.88%) than 73.13% of its industry peers.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
Looking at the Operating Margin, with a value of 30.14%, 1AMAT belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
1AMAT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 48.50%, 1AMAT perfoms like the industry average, outperforming 50.75% 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 | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
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
The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
2.2 Solvency
1AMAT has an Altman-Z score of 12.54. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
1AMAT has a better Altman-Z score (12.54) than 80.60% of its industry peers.
The Debt to FCF ratio of 1AMAT is 1.08, which is an excellent value as it means it would take 1AMAT, only 1.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.08, 1AMAT is doing good in the industry, outperforming 71.64% of the companies in the same industry.
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 41.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.54 |
ROIC/WACC2.49
WACC10.45%
2.3 Liquidity
1AMAT has a Current Ratio of 2.50. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.50, 1AMAT perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
1AMAT has a Quick Ratio of 1.79. 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 better Quick ratio (1.79) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
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.
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
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.
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 26.98, the valuation of 1AMAT can be described as expensive.
73.13% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. 1AMAT is around the same levels.
A Price/Forward Earnings ratio of 26.25 indicates a quite expensive valuation of 1AMAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMAT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.13. 1AMAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 26.25 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1AMAT is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.77 | ||
| EV/EBITDA | 22.01 |
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.
1AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.75
PEG (5Y)1.53
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
1AMAT has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 0.81, 1AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
19.73% 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.
DP19.73%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
BIT:1AMAT (12/1/2025, 7:00:00 PM)
216.65
+12.85 (+6.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.66%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap172.59B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.45 (1.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.46
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.29%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.57%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)3.7%
EPS beat(12)12
Avg EPS beat(12)5.12%
EPS beat(16)13
Avg EPS beat(16)3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)13.86%
PT rev (3m)27.88%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 26.25 | ||
| P/S | 7.08 | ||
| P/FCF | 34.77 | ||
| P/OCF | 26.28 | ||
| P/B | 10.38 | ||
| P/tB | 13.05 | ||
| EV/EBITDA | 22.01 |
EPS(TTM)8.03
EY3.71%
EPS(NY)8.25
Fwd EY3.81%
FCF(TTM)6.23
FCFY2.88%
OCF(TTM)8.24
OCFY3.81%
SpS30.62
BVpS20.87
TBVpS16.61
PEG (NY)9.75
PEG (5Y)1.53
Graham Number61.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 25.99% | ||
| ROICexc | 35.05% | ||
| ROICexgc | 43.72% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
ROICexc(3y)36.63%
ROICexc(5y)37.97%
ROICexgc(3y)47.26%
ROICexgc(5y)49.64%
ROCE(3y)31.01%
ROCE(5y)34.04%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y3.53%
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%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 436.66% | ||
| Cap/Sales | 6.58% | ||
| Interest Coverage | 36.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 85.23% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 12.54 |
F-Score6
WACC10.45%
ROIC/WACC2.49
Cap/Depr(3y)345.96%
Cap/Depr(5y)276.93%
Cap/Sales(3y)5.51%
Cap/Sales(5y)4.49%
Profit Quality(3y)98.84%
Profit Quality(5y)89.65%
High Growth Momentum
Growth
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year6.89%
EBIT Next 3Y9.34%
EBIT Next 5Y10.57%
FCF growth 1Y-11.3%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y0.63%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / 1AMAT.MI FAQ
Can you provide the ChartMill fundamental rating for APPLIED MATERIALS INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1AMAT.MI.
Can you provide the valuation status for APPLIED MATERIALS INC?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (1AMAT.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLIED MATERIALS INC?
APPLIED MATERIALS INC (1AMAT.MI) has a profitability rating of 9 / 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 26.98 and the Price/Book (PB) ratio is 10.38.
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 2.77% in the next year.