APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
NASDAQ:AMAT • US0382221051
372.3 USD
-3.42 (-0.91%)
At close: Feb 27, 2026
371.51 USD
-0.79 (-0.21%)
After Hours: 2/27/2026, 8:00:00 PM
Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AMAT a very profitable company, without any liquidiy or solvency issues. 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.
- AMAT had positive earnings in each of the past 5 years.
- Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
- AMAT has a better Return On Assets (19.28%) than 93.86% of its industry peers.
- With an excellent Return On Equity value of 34.28%, AMAT belongs to the best of the industry, outperforming 93.86% of the companies in the same industry.
- AMAT's Return On Invested Capital of 24.38% is amongst the best of the industry. AMAT outperforms 95.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.64%.
| 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 83.33% of its industry peers.
- In the last couple of years the Profit Margin of AMAT has grown nicely.
- AMAT's Operating Margin of 29.86% is amongst the best of the industry. AMAT outperforms 90.35% of its industry peers.
- 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
- 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.
- AMAT has less shares outstanding than it did 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 15.37 indicates that AMAT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 15.37, AMAT belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of AMAT (1.15) is better than 71.05% 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.
- With a Debt to Equity ratio value of 0.32, AMAT is not doing good in the industry: 62.28% of the companies in the same industry are doing better.
- 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 | 15.37 |
ROIC/WACC2.31
WACC10.54%
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.
- 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.
- Looking at the Quick ratio, with a value of 1.90, AMAT is in line with its industry, outperforming 41.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.72% over the past year.
- The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.10% in the past 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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
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 Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue Next Year9.29%
Revenue Next 2Y14.12%
Revenue Next 3Y12.13%
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
- The Price/Earnings ratio is 39.52, which means the current valuation is very expensive for AMAT.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 74.56% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.10, AMAT is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 30.33, AMAT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 70.18% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, AMAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.52 | ||
| Fwd PE | 30.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.86 | ||
| EV/EBITDA | 33.1 |
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.
- A more expensive valuation may be justified as AMAT's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)9.39
PEG (5Y)2.24
EPS Next 2Y14.15%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
- AMAT has a yearly dividend return of 0.49%, which is pretty low.
- AMAT's Dividend Yield is a higher than the industry average which is at 0.47.
- Compared to an average S&P500 Dividend Yield of 1.83, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
- On average, the dividend of AMAT grows each year by 14.79%, which is quite nice.
- AMAT has been paying a dividend for at least 10 years, so it has 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
- 19.78% 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.
DP19.78%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
372.3
-3.42 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-14 2026-05-14/amc
Inst Owners85.06%
Inst Owner Change0.46%
Ins Owners0.27%
Ins Owner Change1.41%
Market Cap295.50B
Revenue(TTM)28.21B
Net Income(TTM)7.00B
Analysts80
Price Target414.06 (11.22%)
Short Float %1.74%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)17.14%
PT rev (3m)37.47%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0.67%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)6.73%
Revenue NY rev (3m)6.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.52 | ||
| Fwd PE | 30.33 | ||
| P/S | 10.42 | ||
| P/FCF | 51.86 | ||
| P/OCF | 37.13 | ||
| P/B | 14.47 | ||
| P/tB | 17.93 | ||
| EV/EBITDA | 33.1 |
EPS(TTM)9.42
EY2.53%
EPS(NY)12.27
Fwd EY3.3%
FCF(TTM)7.18
FCFY1.93%
OCF(TTM)10.03
OCFY2.69%
SpS35.74
BVpS25.72
TBVpS20.77
PEG (NY)9.39
PEG (5Y)2.24
Graham Number73.83
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 | 15.37 |
F-Score6
WACC10.54%
ROIC/WACC2.31
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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year9.29%
Revenue Next 2Y14.12%
Revenue Next 3Y12.13%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.51%
EBIT Next 3Y10.35%
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 39.52 and the Price/Book (PB) ratio is 14.47.
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%.