APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation
NASDAQ:AMAT • US0382221051
Current stock price
361.79 USD
+4.73 (+1.32%)
At close:
364 USD
+2.21 (+0.61%)
After Hours:
This AMAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AMAT Profitability Analysis
1.1 Basic Checks
- AMAT had positive earnings in the past year.
- AMAT had a positive operating cash flow in the past year.
- In the past 5 years AMAT has always been profitable.
- Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
- AMAT has a Return On Assets of 20.82%. This is amongst the best in the industry. AMAT outperforms 93.91% of its industry peers.
- AMAT has a better Return On Equity (36.10%) than 94.78% of its industry peers.
- With an excellent Return On Invested Capital value of 22.88%, AMAT belongs to the best of the industry, outperforming 94.78% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.82% | ||
| ROE | 36.1% | ||
| ROIC | 22.88% |
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
- With an excellent Profit Margin value of 27.78%, AMAT belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
- AMAT's Profit Margin has improved in the last couple of years.
- AMAT's Operating Margin of 29.74% is amongst the best of the industry. AMAT outperforms 88.70% of its industry peers.
- In the last couple of years the Operating Margin of AMAT has grown nicely.
- With a Gross Margin value of 48.72%, AMAT perfoms like the industry average, outperforming 59.13% of the companies in the same industry.
- In the last couple of years the Gross Margin of AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.74% | ||
| PM (TTM) | 27.78% | ||
| GM | 48.72% |
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. AMAT Health Analysis
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
- AMAT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 14.70 indicates that AMAT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 14.70, AMAT belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
- AMAT has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
- AMAT's Debt to FCF ratio of 1.06 is fine compared to the rest of the industry. AMAT outperforms 72.17% of its industry peers.
- AMAT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- AMAT has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: AMAT underperforms 60.87% of its industry peers.
- Although AMAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 0.3 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 14.7 |
ROIC/WACC1.99
WACC11.51%
2.3 Liquidity
- A Current Ratio of 2.71 indicates that AMAT has no problem at all paying its short term obligations.
- AMAT has a Current ratio (2.71) which is in line with its industry peers.
- A Quick Ratio of 1.98 indicates that AMAT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.98, AMAT is in line with its industry, outperforming 41.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.98 |
3. AMAT Growth Analysis
3.1 Past
- AMAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.72%.
- 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.
- Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 2.10% in the last 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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
3.2 Future
- The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
- Based on estimates for the next years, AMAT will show a quite strong growth in Revenue. The Revenue will grow by 12.66% on average per year.
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue Next Year10.99%
Revenue Next 2Y15.1%
Revenue Next 3Y12.6%
Revenue Next 5Y12.66%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
4. AMAT Valuation Analysis
4.1 Price/Earnings Ratio
- AMAT is valuated quite expensively with a Price/Earnings ratio of 38.41.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 25.54, AMAT is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 25.37, the valuation of AMAT can be described as expensive.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 71.30% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, AMAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.41 | ||
| Fwd PE | 25.37 |
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 69.57% of the companies listed in the same industry.
- 70.43% of the companies in the same industry are more expensive than AMAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.35 | ||
| EV/EBITDA | 31.65 |
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.
- AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
- AMAT's earnings are expected to grow with 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)2.18
EPS Next 2Y23.04%
EPS Next 3Y16.76%
5. AMAT Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.59%, AMAT is not a good candidate for dividend investing.
- AMAT's Dividend Yield is a higher than the industry average which is at 0.50.
- Compared to an average S&P500 Dividend Yield of 1.89, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 18.15% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AMAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.15%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
AMAT Fundamentals: All Metrics, Ratios and Statistics
361.79
+4.73 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-14 2026-05-14/amc
Inst Owners85.14%
Inst Owner Change1.15%
Ins Owners0.31%
Ins Owner Change1.51%
Market Cap287.12B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target414.06 (14.45%)
Short Float %1.71%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP18.15%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19 2026-02-19 (0.46)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.63%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)2.95%
Min EPS beat(4)1.29%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)2.94%
EPS beat(12)12
Avg EPS beat(12)4.23%
EPS beat(16)15
Avg EPS beat(16)4.4%
Revenue beat(2)2
Avg Revenue beat(2)0.04%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.01%
PT rev (1m)25.62%
PT rev (3m)62.6%
EPS NQ rev (1m)17.31%
EPS NQ rev (3m)18.31%
EPS NY rev (1m)14.23%
EPS NY rev (3m)15.83%
Revenue NQ rev (1m)10.18%
Revenue NQ rev (3m)10.49%
Revenue NY rev (1m)8%
Revenue NY rev (3m)8.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.41 | ||
| Fwd PE | 25.37 | ||
| P/S | 10.18 | ||
| P/FCF | 46.35 | ||
| P/OCF | 32.93 | ||
| P/B | 13.22 | ||
| P/tB | 16.13 | ||
| EV/EBITDA | 31.65 |
EPS(TTM)9.42
EY2.6%
EPS(NY)14.26
Fwd EY3.94%
FCF(TTM)7.8
FCFY2.16%
OCF(TTM)10.99
OCFY3.04%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)2.02
PEG (5Y)2.18
Graham Number76.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.82% | ||
| ROE | 36.1% | ||
| ROCE | 28.07% | ||
| ROIC | 22.88% | ||
| ROICexc | 31.94% | ||
| ROICexgc | 39.07% | ||
| OM | 29.74% | ||
| PM (TTM) | 27.78% | ||
| GM | 48.72% | ||
| FCFM | 21.95% |
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-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 552.52% | ||
| Cap/Sales | 8.95% | ||
| Interest Coverage | 33.3 | ||
| Cash Conversion | 98.54% | ||
| Profit Quality | 79.02% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 14.7 |
F-Score7
WACC11.51%
ROIC/WACC1.99
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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year10.99%
Revenue Next 2Y15.1%
Revenue Next 3Y12.6%
Revenue Next 5Y12.66%
EBIT growth 1Y3.91%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year17.79%
EBIT Next 3Y19.39%
EBIT Next 5Y17.82%
FCF growth 1Y-19.63%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-0.41%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / AMAT Fundamental Analysis 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 38.41 and the Price/Book (PB) ratio is 13.22.
Is the dividend of APPLIED MATERIALS INC sustainable?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 6 / 10 and the dividend payout ratio is 18.15%.