APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
BIT:1AMAT - Borsa Italiana Milan - US0382221051 - Common Stock - Currency: EUR
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 56 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. These ratings could make 1AMAT a good candidate 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.
Each year in the past 5 years 1AMAT has been profitable.
Each year in the past 5 years 1AMAT had a positive operating cash flow.
1.2 Ratios
1AMAT has a better Return On Assets (20.86%) than 91.07% of its industry peers.
1AMAT has a better Return On Equity (37.77%) than 78.57% of its industry peers.
The Return On Invested Capital of 1AMAT (26.02%) is better than 91.07% 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 16.97%.
The last Return On Invested Capital (26.02%) for 1AMAT is well below the 3 year average (30.16%), which needs to be investigated, but indicates that 1AMAT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROIC | 26.02% |
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
1AMAT has a better Profit Margin (26.41%) than 78.57% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
1AMAT's Operating Margin of 28.95% is fine compared to the rest of the industry. 1AMAT outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
1AMAT has a Gross Margin of 47.46%. This is comparable to the rest of the industry: 1AMAT outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of 1AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% |
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
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.
1AMAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
2.2 Solvency
1AMAT has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
1AMAT has a better Debt to FCF ratio (0.84) than 89.29% of its industry peers.
1AMAT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
1AMAT has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC1.87
WACC13.9%
2.3 Liquidity
1AMAT has a Current Ratio of 2.51. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.51, 1AMAT is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that 1AMAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.87, 1AMAT is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.58% over the past year.
Measured over the past years, 1AMAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.21% on average per year.
1AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
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)7.58%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%9.43%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%4.79%
3.2 Future
The Earnings Per Share is expected to grow by 11.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
EPS Next Y11.67%
EPS Next 2Y12%
EPS Next 3Y9.57%
EPS Next 5Y11.44%
Revenue Next Year8.43%
Revenue Next 2Y8.38%
Revenue Next 3Y7.3%
Revenue Next 5Y8.06%
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
Based on the Price/Earnings ratio of 20.64, the valuation of 1AMAT can be described as rather expensive.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than 60.71% of the companies in the same industry.
1AMAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.58.
With a Price/Forward Earnings ratio of 18.48, 1AMAT is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as 1AMAT.
When comparing the Price/Forward Earnings ratio of 1AMAT to the average of the S&P500 Index (95.03), we can say 1AMAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMAT indicates a rather cheap valuation: 1AMAT is cheaper than 83.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 16.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1AMAT may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)0.89
EPS Next 2Y12%
EPS Next 3Y9.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, 1AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.49, 1AMAT has a dividend in line with its industry peers.
With a Dividend Yield of 0.86, 1AMAT pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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
16.61% 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.
DP16.61%
EPS Next 2Y12%
EPS Next 3Y9.57%
APPLIED MATERIALS INC
BIT:1AMAT (1/30/2025, 7:00:00 PM)
172.94
+0.36 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.43%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap140.72B
Analysts79.07
Price Target207.04 (19.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend1.44
Dividend Growth(5Y)12.01%
DP16.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.71%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)2.71%
Max EPS beat(4)9.58%
EPS beat(8)8
Avg EPS beat(8)4.97%
EPS beat(12)10
Avg EPS beat(12)4.7%
EPS beat(16)13
Avg EPS beat(16)4.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)-2.1%
PT rev (3m)-3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.48 | ||
| P/S | 5.35 | ||
| P/FCF | 19.42 | ||
| P/OCF | 16.76 | ||
| P/B | 7.65 | ||
| P/tB | 9.68 | ||
| EV/EBITDA | 16.95 |
EPS(TTM)8.38
EY4.85%
EPS(NY)9.36
Fwd EY5.41%
FCF(TTM)8.9
FCFY5.15%
OCF(TTM)10.32
OCFY5.97%
SpS32.32
BVpS22.59
TBVpS17.86
PEG (NY)1.77
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROCE | 30.33% | ||
| ROIC | 26.02% | ||
| ROICexc | 40.29% | ||
| ROICexgc | 52.36% | ||
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% | ||
| FCFM | 27.55% |
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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 303.57% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 38.38 | ||
| Cash Conversion | 105.06% | ||
| Profit Quality | 104.32% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | N/A |
F-Score6
WACC13.9%
ROIC/WACC1.87
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)7.58%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%9.43%
EPS Next Y11.67%
EPS Next 2Y12%
EPS Next 3Y9.57%
EPS Next 5Y11.44%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%4.79%
Revenue Next Year8.43%
Revenue Next 2Y8.38%
Revenue Next 3Y7.3%
Revenue Next 5Y8.06%
EBIT growth 1Y2.78%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year16.74%
EBIT Next 3Y10.63%
EBIT Next 5YN/A
FCF growth 1Y-1.41%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-0.26%
OCF growth 3Y16.83%
OCF growth 5Y21.72%