224.005 USD
+3.78 (+1.71%)
225 USD
+1 (+0.44%)
Overall AMAT gets a fundamental rating of 7 out of 10. We evaluated AMAT against 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 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.
In the past 5 years AMAT has always been profitable.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMAT (19.97%) is better than 92.86% of its industry peers.
AMAT has a better Return On Equity (35.03%) 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
AMAT has a Profit Margin of 23.88%. This is amongst the best in the industry. AMAT outperforms 86.61% of its industry peers.
AMAT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.14%, AMAT belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
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 59.82% of its industry peers.
AMAT's Gross Margin has improved in the last couple of years.
| 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
The number of shares outstanding for AMAT has been reduced compared to 5 years ago.
AMAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.56 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT has a Altman-Z score of 11.56. This is in the better half of the industry: AMAT outperforms 78.57% 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.
A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, AMAT is not doing good in the industry: 61.61% 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 | 11.56 |
ROIC/WACC2.46
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AMAT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.50, AMAT is in line with its industry, outperforming 41.07% of the companies in the same 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.
With a Quick ratio value of 1.79, AMAT is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| 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.
AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
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 10.60% on average per year.
The Revenue is expected to grow by 7.78% on average over the next years.
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
Based on the Price/Earnings ratio of 23.78, the valuation of AMAT can be described as rather expensive.
Based on the Price/Earnings ratio, AMAT is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, AMAT is valued at the same level.
A Price/Forward Earnings ratio of 23.20 indicates a rather expensive valuation of AMAT.
Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than 67.86% of the companies in the same industry.
AMAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 23.2 |
4.2 Price Multiples
69.64% of the companies in the same industry are more expensive than AMAT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.65 | ||
| EV/EBITDA | 19.36 |
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.
PEG (NY)9.59
PEG (5Y)1.35
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.
Compared to an average industry Dividend Yield of 2.35, AMAT pays a better dividend. On top of this AMAT pays more dividend than 81.25% of the companies listed 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
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 2Y8.57%
EPS Next 3Y8.03%
224.005
+3.78 (+1.71%)
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 Cap178.45B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target239.77 (7.04%)
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 | 23.78 | ||
| Fwd PE | 23.2 | ||
| P/S | 6.24 | ||
| P/FCF | 30.65 | ||
| P/OCF | 23.16 | ||
| P/B | 9.15 | ||
| P/tB | 11.5 | ||
| EV/EBITDA | 19.36 |
EPS(TTM)9.42
EY4.21%
EPS(NY)9.65
Fwd EY4.31%
FCF(TTM)7.31
FCFY3.26%
OCF(TTM)9.67
OCFY4.32%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)9.59
PEG (5Y)1.35
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 | 11.56 |
F-Score6
WACC10.57%
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%.