260.28 USD
-2.77 (-1.05%)
Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT gets an excellent profitability rating and is at the same time showing great financial health properties. AMAT is not valued too expensively and it also shows a decent growth rate. With these ratings, AMAT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
AMAT had positive earnings in the past year.
In the past year AMAT had a positive cash flow from operations.
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
AMAT has a better Return On Assets (19.28%) than 92.92% of its industry peers.
The Return On Equity of AMAT (34.28%) is better than 93.81% of its industry peers.
With an excellent Return On Invested Capital value of 24.38%, AMAT belongs to the best of the industry, outperforming 95.58% of the companies in the same industry.
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
Looking at the Profit Margin, with a value of 24.67%, AMAT belongs to the top of the industry, outperforming 82.30% of the companies in the same industry.
AMAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.86%, AMAT belongs to the best of the industry, outperforming 90.27% of the companies in the same industry.
AMAT's Operating Margin has improved in the last couple of years.
The Gross Margin of AMAT (48.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AMAT 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
AMAT has an Altman-Z score of 12.02. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.02, AMAT is in the better half of the industry, outperforming 78.76% of the companies in the same industry.
AMAT 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.
AMAT has a better Debt to FCF ratio (1.15) than 74.34% of its industry peers.
AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AMAT (0.32) is worse than 63.72% of its industry peers.
Although AMAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 12.02 |
ROIC/WACC2.29
WACC10.65%
2.3 Liquidity
A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
With a Current ratio value of 2.61, AMAT perfoms like the industry average, outperforming 44.25% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
AMAT has a Quick ratio (1.90) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
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.
The Revenue has been growing by 10.52% on average over the past years. This is quite good.
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
Based on estimates for the next years, AMAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
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 27.63 indicates a quite expensive valuation of AMAT.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 77.88% of the companies are valued more expensively.
AMAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.85, AMAT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 65.49% of the companies listed in the same industry.
AMAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 26.85 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 76.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.39 | ||
| EV/EBITDA | 23.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.55
PEG (5Y)1.57
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.56, AMAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.71, AMAT pays less dividend than the S&P500 average, which is at 2.00.
| 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 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
AMAT pays out 19.78% of its income as dividend. This is a sustainable payout ratio.
AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
NASDAQ:AMAT (12/30/2025, 3:53:09 PM)
260.28
-2.77 (-1.05%)
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 Cap207.35B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78
Price Target266.33 (2.32%)
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 | 27.63 | ||
| Fwd PE | 26.85 | ||
| P/S | 7.31 | ||
| P/FCF | 36.39 | ||
| P/OCF | 26.06 | ||
| P/B | 10.16 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 23.14 |
EPS(TTM)9.42
EY3.62%
EPS(NY)9.69
Fwd EY3.72%
FCF(TTM)7.15
FCFY2.75%
OCF(TTM)9.99
OCFY3.84%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)9.55
PEG (5Y)1.57
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 | 12.02 |
F-Score6
WACC10.65%
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.
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 5 / 10 and the dividend payout ratio is 19.78%.