249.97 USD
+7.51 (+3.1%)
250.607 USD
+0.64 (+0.25%)
AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AMAT a very profitable company, without any liquidiy or solvency issues. AMAT is not valued too expensively and it also shows a decent growth rate. These ratings could make AMAT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
AMAT had positive earnings in the past year.
AMAT had a positive operating cash flow in the past year.
AMAT had positive earnings in each of the past 5 years.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMAT (19.97%) is better than 92.86% of its industry peers.
With an excellent Return On Equity value of 35.03%, AMAT belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
AMAT has a better Return On Invested Capital (25.99%) than 96.43% of its industry peers.
AMAT had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 10.75%.
The 3 year average ROIC (25.04%) for AMAT is below the current ROIC(25.99%), indicating increased profibility in the last year.
| 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
AMAT's Profit Margin of 23.88% is amongst the best of the industry. AMAT outperforms 86.61% of its industry peers.
AMAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.14%, AMAT belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
In the last couple of years the Operating Margin of AMAT has grown nicely.
AMAT's Gross Margin of 48.50% is in line compared to the rest of the industry. AMAT outperforms 59.82% of its industry peers.
AMAT's Gross Margin has improved in the last couple of years.
| 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
AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
Compared to 5 years ago, AMAT has less shares outstanding
The debt/assets ratio for AMAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.40 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT has a better Altman-Z score (12.40) than 77.68% of its industry peers.
AMAT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
The Debt to FCF ratio of AMAT (1.08) is better than 75.89% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
AMAT's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. AMAT is outperformed by 61.61% of its industry peers.
Even though the debt/equity ratio score it not favorable for AMAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.4 |
ROIC/WACC2.46
WACC10.56%
2.3 Liquidity
AMAT has a Current Ratio of 2.50. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
AMAT has a Current ratio (2.50) which is comparable to the rest of the industry.
AMAT has a Quick Ratio of 1.79. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting its short term obligations.
AMAT has a worse Quick ratio (1.79) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
AMAT 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, AMAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
The Revenue has been growing slightly by 4.39% in the past year.
Measured over the past years, AMAT 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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
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
With a Price/Earnings ratio of 26.54, AMAT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 79.46% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. AMAT is around the same levels.
AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 25.89.
Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
AMAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 69.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 21.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMAT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AMAT may justify a higher PE ratio.
PEG (NY)10.7
PEG (5Y)1.5
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.33, AMAT pays a better dividend. On top of this AMAT pays more dividend than 81.25% of the companies listed in the same industry.
With a Dividend Yield of 0.84, AMAT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of AMAT is nicely growing with an annual growth rate of 14.79%!
AMAT has paid a dividend for at least 10 years, which is a reliable track record.
AMAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.79%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
19.73% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
249.97
+7.51 (+3.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change2.14%
Ins Owners0.26%
Ins Owner Change-0.07%
Market Cap199.14B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target239.77 (-4.08%)
Short Float %2.15%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years7
Div Non Decr Years19
Ex-Date
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)19.52%
PT rev (3m)21.51%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 25.89 | ||
| P/S | 6.96 | ||
| P/FCF | 34.2 | ||
| P/OCF | 25.85 | ||
| P/B | 10.21 | ||
| P/tB | 12.83 | ||
| EV/EBITDA | 21.64 |
EPS(TTM)9.42
EY3.77%
EPS(NY)9.65
Fwd EY3.86%
FCF(TTM)7.31
FCFY2.92%
OCF(TTM)9.67
OCFY3.87%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)10.7
PEG (5Y)1.5
Graham Number72.04
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 | 12.4 |
F-Score6
WACC10.56%
ROIC/WACC2.46
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 Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y6.43%
EBIT Next 5YN/A
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 / AMAT FAQ
What is the fundamental rating for AMAT stock?
ChartMill assigns a fundamental rating of 7 / 10 to AMAT.
What is the valuation status of APPLIED MATERIALS INC (AMAT) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (AMAT). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLIED MATERIALS INC?
APPLIED MATERIALS INC (AMAT) has a profitability rating of 9 / 10.
What is the financial health of APPLIED MATERIALS INC (AMAT) stock?
The financial health rating of APPLIED MATERIALS INC (AMAT) is 7 / 10.
How sustainable is the dividend of APPLIED MATERIALS INC (AMAT) stock?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 6 / 10 and the dividend payout ratio is 19.73%.