APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation

NASDAQ:AMAT • US0382221051

326.18 USD
+1.44 (+0.44%)
Last: Mar 9, 2026, 02:00 PM
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This AMAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 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. These ratings would make AMAT suitable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. AMAT Profitability Analysis

1.1 Basic Checks

  • In the past year AMAT was profitable.
  • In the past year AMAT had a positive cash flow from operations.
  • AMAT had positive earnings in each of the past 5 years.
  • In the past 5 years AMAT always reported a positive cash flow from operatings.
AMAT Yearly Net Income VS EBIT VS OCF VS FCFAMAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

1.2 Ratios

  • AMAT has a better Return On Assets (20.82%) than 93.91% of its industry peers.
  • AMAT's Return On Equity of 36.10% is amongst the best of the industry. AMAT outperforms 93.91% of its industry peers.
  • With an excellent Return On Invested Capital value of 22.88%, AMAT belongs to the best of the industry, outperforming 95.65% 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 10.48%.
Industry RankSector 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%
AMAT Yearly ROA, ROE, ROICAMAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • AMAT has a better Profit Margin (27.78%) than 84.35% of its industry peers.
  • In the last couple of years the Profit Margin of AMAT has grown nicely.
  • 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.
  • AMAT has a Gross Margin (48.72%) which is in line with its industry peers.
  • AMAT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AMAT Yearly Profit, Operating, Gross MarginsAMAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. AMAT Health Analysis

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.
  • The number of shares outstanding for AMAT has been reduced compared to 5 years ago.
  • Compared to 1 year ago, AMAT has an improved debt to assets ratio.
AMAT Yearly Shares OutstandingAMAT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
AMAT Yearly Total Debt VS Total AssetsAMAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 13.73 indicates that AMAT is not in any danger for bankruptcy at the moment.
  • AMAT has a better Altman-Z score (13.73) than 79.13% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 1.06, AMAT is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • AMAT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.30, AMAT is not doing good in the industry: 61.74% of the companies in the same industry are doing better.
  • 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 RankSector Rank
Debt/Equity 0.3
Debt/FCF 1.06
Altman-Z 13.73
ROIC/WACC2.02
WACC11.31%
AMAT Yearly LT Debt VS Equity VS FCFAMAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • AMAT has a Current Ratio of 2.71. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
  • AMAT's Current ratio of 2.71 is in line compared to the rest of the industry. AMAT outperforms 47.83% of its industry peers.
  • AMAT has a Quick Ratio of 1.98. 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 Quick ratio (1.98) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.71
Quick Ratio 1.98
AMAT Yearly Current Assets VS Current LiabilitesAMAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. AMAT Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.72% over the past year.
  • The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 2.10% 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)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

  • AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
  • The Revenue is expected to grow by 12.66% on average over the next years. This is quite good.
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue Next Year11.28%
Revenue Next 2Y15.4%
Revenue Next 3Y12.99%
Revenue Next 5Y12.66%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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.
AMAT Yearly Revenue VS EstimatesAMAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
AMAT Yearly EPS VS EstimatesAMAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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4

4. AMAT Valuation Analysis

4.1 Price/Earnings Ratio

  • AMAT is valuated quite expensively with a Price/Earnings ratio of 34.63.
  • Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 77.39% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, AMAT is valued a bit more expensive.
  • With a Price/Forward Earnings ratio of 22.87, AMAT is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than 76.52% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.60, AMAT is valued at the same level.
Industry RankSector Rank
PE 34.63
Fwd PE 22.87
AMAT Price Earnings VS Forward Price EarningsAMAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 69.57% of the companies in the same industry.
  • AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 73.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 41.79
EV/EBITDA 28.75
AMAT Per share dataAMAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • A more expensive valuation may be justified as AMAT's earnings are expected to grow with 16.76% in the coming years.
PEG (NY)1.82
PEG (5Y)1.96
EPS Next 2Y23.04%
EPS Next 3Y16.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AMAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.53%, AMAT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.49, AMAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

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 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
AMAT Yearly Dividends per shareAMAT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 18.15% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
  • AMAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.15%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
AMAT Yearly Income VS Free CF VS DividendAMAT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
AMAT Dividend Payout.AMAT Dividend Payout, showing the Payout Ratio.AMAT Dividend Payout.PayoutRetained Earnings

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AMAT Fundamentals: All Metrics, Ratios and Statistics

APPLIED MATERIALS INC

NASDAQ:AMAT (3/9/2026, 2:00:04 PM)

326.18

+1.44 (+0.44%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-14
Inst Owners85.14%
Inst Owner Change0.62%
Ins Owners0.31%
Ins Owner Change1.4%
Market Cap258.86B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target414.06 (26.94%)
Short Float %1.86%
Short Ratio1.88
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP18.15%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19
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)8.29%
Revenue NY rev (3m)9.01%
Valuation
Industry RankSector Rank
PE 34.63
Fwd PE 22.87
P/S 9.17
P/FCF 41.79
P/OCF 29.69
P/B 11.92
P/tB 14.55
EV/EBITDA 28.75
EPS(TTM)9.42
EY2.89%
EPS(NY)14.26
Fwd EY4.37%
FCF(TTM)7.8
FCFY2.39%
OCF(TTM)10.99
OCFY3.37%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)1.82
PEG (5Y)1.96
Graham Number76.16
Profitability
Industry RankSector 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 RankSector 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 13.73
F-Score7
WACC11.31%
ROIC/WACC2.02
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 Year11.28%
Revenue Next 2Y15.4%
Revenue Next 3Y12.99%
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 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 34.63 and the Price/Book (PB) ratio is 11.92.


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%.