256.99 USD
-2.98 (-1.15%)
256.89 USD
-0.1 (-0.04%)
AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 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 has a correct valuation and a medium growth rate. These ratings would make AMAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AMAT was profitable.
AMAT had a positive operating cash flow in the past year.
AMAT had positive earnings in each of the past 5 years.
AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMAT has a Return On Assets of 19.28%. This is amongst the best in the industry. AMAT outperforms 92.92% of its industry peers.
AMAT has a Return On Equity of 34.28%. This is amongst the best in the industry. AMAT outperforms 93.81% of its industry peers.
AMAT has a Return On Invested Capital of 24.38%. This is amongst the best in the industry. AMAT outperforms 95.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMAT is significantly above the industry average of 10.75%.
| 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
AMAT's Profit Margin of 24.67% is amongst the best of the industry. AMAT outperforms 82.30% of its industry peers.
In the last couple of years the Profit Margin of AMAT has grown nicely.
AMAT has a Operating Margin of 29.86%. This is amongst the best in the industry. AMAT outperforms 90.27% of its industry peers.
In the last couple of years the Operating Margin of AMAT has grown nicely.
With a Gross Margin value of 48.67%, AMAT perfoms like the industry average, outperforming 59.29% of the companies in the same industry.
AMAT'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AMAT 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 11.93 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT's Altman-Z score of 11.93 is fine compared to the rest of the industry. AMAT outperforms 78.76% of its industry peers.
The Debt to FCF ratio of AMAT is 1.15, which is an excellent value as it means it would take AMAT, only 1.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.15, AMAT is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
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 63.72% 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 | 1.15 | ||
| Altman-Z | 11.93 |
ROIC/WACC2.29
WACC10.64%
2.3 Liquidity
AMAT has a Current Ratio of 2.61. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
AMAT has a Current ratio (2.61) which is comparable to the rest of the industry.
AMAT has a Quick Ratio of 1.90. This is a normal value and indicates that AMAT 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, AMAT is in line with its industry, outperforming 42.48% 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.
AMAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
AMAT 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
AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
Based on estimates for the next years, AMAT will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
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
A Price/Earnings ratio of 27.28 indicates a quite expensive valuation of AMAT.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 78.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, AMAT is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.51, the valuation of AMAT can be described as expensive.
Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than 66.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (23.13), we can say AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 26.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 70.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 76.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 22.87 |
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 AMAT may justify a higher PE ratio.
PEG (NY)9.42
PEG (5Y)1.55
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 0.56, AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
On average, the dividend of AMAT grows each year by 14.79%, which is quite nice.
AMAT has been paying a dividend for at least 10 years, so it has a reliable track record.
AMAT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.79%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
19.78% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
The dividend of AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
256.99
-2.98 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.66%
Inst Owner Change2.18%
Ins Owners0.26%
Ins Owner Change1.4%
Market Cap204.73B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78
Price Target266.33 (3.63%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.63%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.02%
Min EPS beat(4)1.29%
Max EPS beat(4)3.04%
EPS beat(8)8
Avg EPS beat(8)3.4%
EPS beat(12)12
Avg EPS beat(12)3.99%
EPS beat(16)14
Avg EPS beat(16)4.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)11.08%
PT rev (3m)34.68%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 26.51 | ||
| P/S | 7.22 | ||
| P/FCF | 35.93 | ||
| P/OCF | 25.73 | ||
| P/B | 10.03 | ||
| P/tB | 12.42 | ||
| EV/EBITDA | 22.87 |
EPS(TTM)9.42
EY3.67%
EPS(NY)9.69
Fwd EY3.77%
FCF(TTM)7.15
FCFY2.78%
OCF(TTM)9.99
OCFY3.89%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)9.42
PEG (5Y)1.55
Graham Number73.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROCE | 29.93% | ||
| ROIC | 24.38% | ||
| ROICexc | 34.93% | ||
| ROICexgc | 43.57% | ||
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% | ||
| FCFM | 20.09% |
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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 519.54% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | 35.44 | ||
| Cash Conversion | 89.37% | ||
| Profit Quality | 81.42% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 11.93 |
F-Score6
WACC10.64%
ROIC/WACC2.29
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 Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.12%
EBIT Next 3Y9.46%
EBIT Next 5Y10.57%
FCF growth 1Y-23.89%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-8.29%
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.
Can you provide the valuation status for APPLIED MATERIALS INC?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (AMAT). This can be considered as Fairly Valued.
How profitable is APPLIED MATERIALS INC (AMAT) stock?
APPLIED MATERIALS INC (AMAT) 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 (AMAT) is 27.28 and the Price/Book (PB) ratio is 10.03.
Is the dividend of APPLIED MATERIALS INC sustainable?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 5 / 10 and the dividend payout ratio is 19.78%.