299.515 USD
-5.36 (-1.76%)
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 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.
- 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 (19.28%) than 92.92% of its industry peers.
- Looking at the Return On Equity, with a value of 34.28%, AMAT belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 24.38%, AMAT belongs to the top of the industry, outperforming 95.58% 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 10.75%.
| 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
- The Profit Margin of AMAT (24.67%) is better than 82.30% of its industry peers.
- In the last couple of years the Profit Margin of AMAT has grown nicely.
- The Operating Margin of AMAT (29.86%) is better than 90.27% of its industry peers.
- AMAT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 48.67%, AMAT is in line with its industry, outperforming 59.29% 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 | 29.86% | ||
| 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
- 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.
- 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 13.28 indicates that AMAT is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 13.28, AMAT is doing good in the industry, outperforming 78.76% of the companies in the same industry.
- The Debt to FCF ratio of AMAT is 1.15, which is an excellent value as it means it would take AMAT, only 1.15 years of fcf income to pay off all of its debts.
- AMAT has a Debt to FCF ratio of 1.15. This is in the better half of the industry: AMAT outperforms 74.34% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
- AMAT has a worse Debt to Equity ratio (0.32) than 62.83% 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 | 13.28 |
ROIC/WACC2.27
WACC10.72%
2.3 Liquidity
- AMAT has a Current Ratio of 2.61. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of AMAT (2.61) is comparable to the rest of the 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 comparable to the rest of the industry.
| 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.
- Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
- 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
- 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.
- 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 Y2.89%
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.
- 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
- The Price/Earnings ratio is 31.80, which means the current valuation is very expensive for AMAT.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 77.88% of the companies in the same industry.
- AMAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 30.90.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than 63.72% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, AMAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 30.9 |
4.2 Price Multiples
- AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 69.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than 76.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.88 | ||
| EV/EBITDA | 26.89 |
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.
PEG (NY)10.98
PEG (5Y)1.8
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
- AMAT has a yearly dividend return of 0.65%, which is pretty low.
- AMAT's Dividend Yield is rather good when compared to the industry average which is at 0.53. AMAT pays more dividend than 80.53% of the companies in the same industry.
- With a Dividend Yield of 0.65, AMAT pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- The dividend of AMAT is nicely growing with an annual growth rate of 14.79%!
- AMAT has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
- AMAT pays out 19.78% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
NASDAQ:AMAT (1/14/2026, 9:59:09 AM)
299.515
-5.36 (-1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-13 2025-11-13/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners85.06%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change1.45%
Market Cap238.61B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78.5
Price Target266.33 (-11.08%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
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)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)4.59%
PT rev (3m)32.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 30.9 | ||
| P/S | 8.41 | ||
| P/FCF | 41.88 | ||
| P/OCF | 29.98 | ||
| P/B | 11.69 | ||
| P/tB | 14.48 | ||
| EV/EBITDA | 26.89 |
EPS(TTM)9.42
EY3.15%
EPS(NY)9.69
Fwd EY3.24%
FCF(TTM)7.15
FCFY2.39%
OCF(TTM)9.99
OCFY3.34%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)10.98
PEG (5Y)1.8
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 | 13.28 |
F-Score6
WACC10.72%
ROIC/WACC2.27
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.
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 31.8 and the Price/Book (PB) ratio is 11.69.
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 19.78%.