261.9 USD
+1.12 (+0.43%)
262 USD
+0.1 (+0.04%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a decent growth rate and is not valued too expensively. These ratings would make AMAT suitable 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.
In the past 5 years AMAT always reported a positive cash flow from operatings.
1.2 Ratios
AMAT has a better Return On Assets (19.97%) than 92.92% of its industry peers.
The Return On Equity of AMAT (35.03%) is better than 93.81% of its industry peers.
With an excellent Return On Invested Capital value of 25.99%, AMAT belongs to the best of the industry, outperforming 96.46% 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 10.77%.
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
AMAT's Profit Margin of 23.88% is amongst the best of the industry. AMAT outperforms 82.30% of its industry peers.
AMAT's Profit Margin has improved in the last couple of years.
The Operating Margin of AMAT (30.14%) is better than 90.27% of its industry peers.
AMAT's Operating Margin has improved in the last couple of years.
AMAT has a Gross Margin of 48.50%. This is comparable to the rest of the industry: AMAT outperforms 59.29% of its industry peers.
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
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.
The number of shares outstanding for AMAT has been reduced compared to 5 years ago.
The debt/assets ratio for AMAT has been reduced compared to a year ago.
2.2 Solvency
AMAT has an Altman-Z score of 12.76. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
AMAT has a Altman-Z score of 12.76. This is in the better half of the industry: AMAT outperforms 78.76% of its industry peers.
The Debt to FCF ratio of AMAT is 1.08, which is an excellent value as it means it would take AMAT, only 1.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.08, AMAT is doing good in the industry, outperforming 75.22% 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.
With a Debt to Equity ratio value of 0.32, AMAT is not doing good in the industry: 63.72% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.76 |
ROIC/WACC2.45
WACC10.62%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AMAT has no problem at all paying its short term obligations.
AMAT has a Current ratio (2.50) which 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.
AMAT's Quick ratio of 1.79 is on the low side compared to the rest of the industry. AMAT is outperformed by 60.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
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.
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)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.
The Revenue is expected to grow by 6.57% on average over the next years.
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.
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 27.80 indicates a quite expensive valuation of AMAT.
Compared to the rest of the industry, the Price/Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 79.65% of the companies listed in the same industry.
AMAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.05, which means the current valuation is very expensive for AMAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 66.37% 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 27.05 |
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.
76.99% 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 | 35.83 | ||
| EV/EBITDA | 22.59 |
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)10.05
PEG (5Y)1.58
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, AMAT is not a good candidate for dividend investing.
AMAT's Dividend Yield is a higher than the industry average which is at 0.56.
Compared to an average S&P500 Dividend Yield of 1.88, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of AMAT grows each year by 14.79%, which is quite nice.
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
19.73% 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.
DP19.73%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
261.9
+1.12 (+0.43%)
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 Change4.54%
Market Cap208.64B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target254.65 (-2.77%)
Short Float %2.39%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)6.2%
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 | 27.8 | ||
| Fwd PE | 27.05 | ||
| P/S | 7.29 | ||
| P/FCF | 35.83 | ||
| P/OCF | 27.08 | ||
| P/B | 10.7 | ||
| P/tB | 13.45 | ||
| EV/EBITDA | 22.59 |
EPS(TTM)9.42
EY3.6%
EPS(NY)9.68
Fwd EY3.7%
FCF(TTM)7.31
FCFY2.79%
OCF(TTM)9.67
OCFY3.69%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)10.05
PEG (5Y)1.58
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 | 12.76 |
F-Score6
WACC10.62%
ROIC/WACC2.45
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%.