269.605 USD
+12.62 (+4.91%)
We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 113 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 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.
Each year in the past 5 years AMAT has been profitable.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.28%, AMAT belongs to the top of the industry, outperforming 92.92% of the companies in the same industry.
The Return On Equity of AMAT (34.28%) is better than 93.81% of its industry peers.
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.
AMAT had an Average Return On Invested Capital over the past 3 years of 25.04%. This 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
AMAT has a Profit Margin of 24.67%. This is amongst the best in the industry. AMAT outperforms 82.30% 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 29.86%, AMAT belongs to the top of the industry, outperforming 90.27% of the companies in the same industry.
AMAT's Operating Margin has improved in the last couple of years.
AMAT has a Gross Margin (48.67%) which is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 11.84 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT's Altman-Z score of 11.84 is fine compared to the rest of the industry. AMAT outperforms 78.76% of its industry peers.
AMAT has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
AMAT's Debt to FCF ratio of 1.15 is fine compared to the rest 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's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. AMAT is outperformed by 62.83% 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 | 1.15 | ||
| Altman-Z | 11.84 |
ROIC/WACC2.26
WACC10.77%
2.3 Liquidity
A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
With a Current ratio value of 2.61, AMAT perfoms like the industry average, outperforming 44.25% of the companies in the same industry.
AMAT has a Quick Ratio of 1.90. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AMAT (1.90) 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
The Earnings Per Share has grown by an nice 8.78% over the past year.
The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
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
The Earnings Per Share is expected to grow by 11.04% on average over the next years. This is quite good.
AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
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
Based on the Price/Earnings ratio of 28.62, the valuation of AMAT can be described as expensive.
78.76% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, AMAT is valued at the same level.
Based on the Price/Forward Earnings ratio of 27.82, the valuation of AMAT can be described as expensive.
Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than 65.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. AMAT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 70.80% 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 76.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.69 | ||
| EV/EBITDA | 22.6 |
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)9.89
PEG (5Y)1.62
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.56, AMAT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
AMAT pays out 19.78% 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.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
NASDAQ:AMAT (1/2/2026, 2:57:09 PM)
269.605
+12.62 (+4.91%)
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 Change1.4%
Market Cap214.78B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78
Price Target266.33 (-1.21%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date
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)11.08%
PT rev (3m)34.68%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 27.82 | ||
| P/S | 7.57 | ||
| P/FCF | 37.69 | ||
| P/OCF | 26.99 | ||
| P/B | 10.52 | ||
| P/tB | 13.03 | ||
| EV/EBITDA | 22.6 |
EPS(TTM)9.42
EY3.49%
EPS(NY)9.69
Fwd EY3.6%
FCF(TTM)7.15
FCFY2.65%
OCF(TTM)9.99
OCFY3.71%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)9.89
PEG (5Y)1.62
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 | 11.84 |
F-Score6
WACC10.77%
ROIC/WACC2.26
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 28.62 and the Price/Book (PB) ratio is 10.52.
Is the dividend of APPLIED MATERIALS INC sustainable?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 5 / 10 and the dividend payout ratio is 19.78%.