230.91 USD
+6.91 (+3.08%)
234.51 USD
+3.6 (+1.56%)
We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 112 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 correct valuation and a medium growth rate. 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.
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 94.64% of its industry peers.
AMAT has a Return On Invested Capital of 25.99%. This is amongst the best in 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 10.75%.
The 3 year average ROIC (25.04%) for AMAT is below the current ROIC(25.99%), indicating increased profibility in the last year.
| 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 86.61% of the companies in the same industry.
In the last couple of years the Profit Margin of AMAT has grown nicely.
AMAT's Operating Margin of 30.14% is amongst the best of the industry. AMAT outperforms 91.07% of its industry peers.
In the last couple of years the Operating Margin of AMAT has grown nicely.
With a Gross Margin value of 48.50%, AMAT perfoms like the industry average, outperforming 59.82% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AMAT is creating value.
Compared to 1 year ago, AMAT has less shares outstanding
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
An Altman-Z score of 11.79 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT has a better Altman-Z score (11.79) than 77.68% 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.
AMAT has a better Debt to FCF ratio (1.08) than 75.89% of its industry peers.
AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AMAT (0.32) is worse than 61.61% of its industry peers.
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 | 11.79 |
ROIC/WACC2.46
WACC10.58%
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.
AMAT has a Quick Ratio of 1.79. 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 of 1.79. This is in the lower half of the industry: AMAT underperforms 60.71% 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.
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.
The Revenue has been growing slightly by 4.39% 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)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 10.60% yearly.
Based on estimates for the next years, AMAT will show a small growth in Revenue. The Revenue will grow by 7.78% on average per year.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
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.
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
With a Price/Earnings ratio of 24.51, AMAT is valued on the expensive side.
Based on the Price/Earnings ratio, AMAT is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.65. AMAT is around the same levels.
AMAT is valuated rather expensively with a Price/Forward Earnings ratio of 23.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, AMAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 23.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 69.64% of the companies in the same industry.
78.57% 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 | 31.59 | ||
| EV/EBITDA | 19.97 |
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)9.89
PEG (5Y)1.39
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.84%, which is pretty low.
AMAT's Dividend Yield is rather good when compared to the industry average which is at 2.35. AMAT pays more dividend than 81.25% of the companies in the same industry.
With a Dividend Yield of 0.84, AMAT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
5.3 Sustainability
AMAT pays out 19.73% 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.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
230.91
+6.91 (+3.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change2.14%
Ins Owners0.26%
Ins Owner Change-0.07%
Market Cap183.95B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target239.77 (3.84%)
Short Float %2.15%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)19.52%
PT rev (3m)21.51%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.51 | ||
| Fwd PE | 23.92 | ||
| P/S | 6.43 | ||
| P/FCF | 31.59 | ||
| P/OCF | 23.87 | ||
| P/B | 9.43 | ||
| P/tB | 11.85 | ||
| EV/EBITDA | 19.97 |
EPS(TTM)9.42
EY4.08%
EPS(NY)9.65
Fwd EY4.18%
FCF(TTM)7.31
FCFY3.17%
OCF(TTM)9.67
OCFY4.19%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)9.89
PEG (5Y)1.39
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 | 11.79 |
F-Score6
WACC10.58%
ROIC/WACC2.46
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 Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y6.43%
EBIT Next 5YN/A
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 5 / 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 6 / 10 and the dividend payout ratio is 19.73%.