248.27 USD
-10.57 (-4.08%)
253.31 USD
+5.04 (+2.03%)
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. AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
In the past year AMAT was profitable.
AMAT had a positive operating cash flow in the past year.
Each year in the past 5 years AMAT has been profitable.
AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMAT has a better Return On Assets (19.97%) than 92.86% of its industry peers.
The Return On Equity of AMAT (35.03%) is better than 93.75% of its industry peers.
AMAT's Return On Invested Capital of 25.99% is amongst the best of the industry. AMAT outperforms 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.79%.
The last Return On Invested Capital (25.99%) for AMAT is above the 3 year average (25.04%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 23.88%, AMAT belongs to the top of the industry, outperforming 83.04% of the companies in the same industry.
In the last couple of years the Profit Margin of AMAT has grown nicely.
AMAT has a better Operating Margin (30.14%) than 91.07% of its industry peers.
In the last couple of years the Operating Margin of AMAT has grown nicely.
Looking at the Gross Margin, with a value of 48.50%, AMAT is in line with its industry, outperforming 58.93% 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 | 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.
Compared to 1 year ago, AMAT has less shares outstanding
AMAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMAT has an improved debt to assets ratio.
2.2 Solvency
AMAT has an Altman-Z score of 12.35. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
AMAT has a better Altman-Z score (12.35) than 78.57% 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.
AMAT has a Debt to FCF ratio of 1.08. This is in the better half of the industry: AMAT outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
AMAT has a Debt to Equity ratio of 0.32. This is in the lower half of the industry: AMAT underperforms 63.39% 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 | 1.08 | ||
| Altman-Z | 12.35 |
ROIC/WACC2.5
WACC10.38%
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.
The Current ratio of AMAT (2.50) is comparable to the rest of the industry.
A Quick Ratio of 1.79 indicates that AMAT should not have too much problems paying its short term obligations.
The Quick ratio of AMAT (1.79) is worse 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.
AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AMAT is valuated quite expensively with a Price/Earnings ratio of 26.36.
Based on the Price/Earnings ratio, AMAT is valued cheaper than 80.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (26.22), we can say AMAT is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.65, AMAT can be considered very expensive at the moment.
68.75% of the companies in the same industry are more expensive than AMAT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.58. AMAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 25.65 |
4.2 Price Multiples
AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 71.43% 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 77.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.97 | ||
| EV/EBITDA | 21.49 |
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)9.53
PEG (5Y)1.49
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.59, AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
AMAT pays out 19.73% 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.
DP19.73%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
248.27
-10.57 (-4.08%)
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 Change-0.14%
Market Cap197.78B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target254.65 (2.57%)
Short Float %2.39%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)15.32%
PT rev (3m)28.77%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 25.65 | ||
| P/S | 6.91 | ||
| P/FCF | 33.97 | ||
| P/OCF | 25.67 | ||
| P/B | 10.14 | ||
| P/tB | 12.75 | ||
| EV/EBITDA | 21.49 |
EPS(TTM)9.42
EY3.79%
EPS(NY)9.68
Fwd EY3.9%
FCF(TTM)7.31
FCFY2.94%
OCF(TTM)9.67
OCFY3.9%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)9.53
PEG (5Y)1.49
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 | 12.35 |
F-Score6
WACC10.38%
ROIC/WACC2.5
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year6.89%
EBIT Next 3Y9.34%
EBIT Next 5Y10.57%
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 5 / 10 and the dividend payout ratio is 19.73%.