APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation
NASDAQ:AMAT • US0382221051
Current stock price
417.04 USD
+13.13 (+3.25%)
At close:
417.87 USD
+0.83 (+0.2%)
After Hours:
This AMAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AMAT Profitability Analysis
1.1 Basic Checks
- AMAT had positive earnings in the past year.
- 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
- The Return On Assets of AMAT (20.82%) is better than 93.04% of its industry peers.
- AMAT has a better Return On Equity (36.10%) than 94.78% of its industry peers.
- AMAT's Return On Invested Capital of 22.88% is amongst the best of the industry. AMAT outperforms 94.78% of its industry peers.
- AMAT had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 10.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.82% | ||
| ROE | 36.1% | ||
| ROIC | 22.88% |
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 27.78%, AMAT belongs to the top of the industry, outperforming 86.09% of the companies in the same industry.
- AMAT's Profit Margin has improved in the last couple of years.
- AMAT has a Operating Margin of 29.74%. This is amongst the best in the industry. AMAT outperforms 88.70% of its industry peers.
- AMAT's Operating Margin has improved in the last couple of years.
- AMAT's Gross Margin of 48.72% is in line compared to the rest of the industry. AMAT outperforms 59.13% of its industry peers.
- AMAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.74% | ||
| PM (TTM) | 27.78% | ||
| GM | 48.72% |
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. AMAT Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AMAT is creating value.
- AMAT has less shares outstanding than it did 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
- AMAT has an Altman-Z score of 16.49. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
- AMAT's Altman-Z score of 16.49 is fine compared to the rest of the industry. AMAT outperforms 79.13% of its industry peers.
- AMAT has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
- AMAT has a Debt to FCF ratio of 1.06. This is in the better half of the industry: AMAT outperforms 73.04% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that AMAT is not too dependend on debt financing.
- The Debt to Equity ratio of AMAT (0.30) is worse than 61.74% 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 | 0.3 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 16.49 |
ROIC/WACC1.9
WACC12.05%
2.3 Liquidity
- A Current Ratio of 2.71 indicates that AMAT has no problem at all paying its short term obligations.
- With a Current ratio value of 2.71, AMAT perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
- A Quick Ratio of 1.98 indicates that AMAT should not have too much problems paying its short term obligations.
- AMAT has a worse Quick ratio (1.98) than 63.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.98 |
3. AMAT Growth Analysis
3.1 Past
- AMAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.72%.
- 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 2.10% in the last year.
- 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)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 17.88% on average per year.
- The Revenue is expected to grow by 11.65% on average over the next years. This is quite good.
EPS Next Y19.03%
EPS Next 2Y23.01%
EPS Next 3Y16.96%
EPS Next 5Y17.88%
Revenue Next Year10.95%
Revenue Next 2Y15.42%
Revenue Next 3Y13.03%
Revenue Next 5Y11.65%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. AMAT Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 44.27, the valuation of AMAT can be described as expensive.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 79.13% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (27.42), we can say AMAT is valued expensively.
- Based on the Price/Forward Earnings ratio of 29.26, the valuation of AMAT can be described as expensive.
- 79.13% of the companies in the same industry are more expensive than AMAT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.29, AMAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.27 | ||
| Fwd PE | 29.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 73.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.43 | ||
| EV/EBITDA | 37.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of AMAT may justify a higher PE ratio.
- AMAT's earnings are expected to grow with 16.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)2.51
EPS Next 2Y23.01%
EPS Next 3Y16.96%
5. AMAT Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.52%, AMAT is not a good candidate for dividend investing.
- AMAT's Dividend Yield is rather good when compared to the industry average which is at 0.42. AMAT pays more dividend than 81.74% of the companies in the same industry.
- With a Dividend Yield of 0.52, AMAT pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 Years8
Div Non Decr Years20
5.3 Sustainability
- AMAT pays out 18.15% of its income as dividend. This is a sustainable payout ratio.
- AMAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.15%
EPS Next 2Y23.01%
EPS Next 3Y16.96%
AMAT Fundamentals: All Metrics, Ratios and Statistics
417.04
+13.13 (+3.25%)
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 Owners85.19%
Inst Owner Change-0.36%
Ins Owners0.31%
Ins Owner Change1.5%
Market Cap330.97B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target423.69 (1.59%)
Short Float %1.65%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP18.15%
Div Incr Years8
Div Non Decr Years20
Ex-Date05-21 2026-05-21 (0.53)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.63%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)2.95%
Min EPS beat(4)1.29%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)2.94%
EPS beat(12)12
Avg EPS beat(12)4.23%
EPS beat(16)15
Avg EPS beat(16)4.4%
Revenue beat(2)2
Avg Revenue beat(2)0.04%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.01%
PT rev (1m)2.32%
PT rev (3m)50.57%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)17.15%
EPS NY rev (1m)0%
EPS NY rev (3m)15%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)9.86%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)8.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.27 | ||
| Fwd PE | 29.26 | ||
| P/S | 11.73 | ||
| P/FCF | 53.43 | ||
| P/OCF | 37.96 | ||
| P/B | 15.24 | ||
| P/tB | 18.6 | ||
| EV/EBITDA | 37.03 |
EPS(TTM)9.42
EY2.26%
EPS(NY)14.25
Fwd EY3.42%
FCF(TTM)7.8
FCFY1.87%
OCF(TTM)10.99
OCFY2.63%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)2.33
PEG (5Y)2.51
Graham Number76.1576 (-81.74%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.82% | ||
| ROE | 36.1% | ||
| ROCE | 28.07% | ||
| ROIC | 22.88% | ||
| ROICexc | 31.94% | ||
| ROICexgc | 39.07% | ||
| OM | 29.74% | ||
| PM (TTM) | 27.78% | ||
| GM | 48.72% | ||
| FCFM | 21.95% |
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-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 552.52% | ||
| Cap/Sales | 8.95% | ||
| Interest Coverage | 33.3 | ||
| Cash Conversion | 98.54% | ||
| Profit Quality | 79.02% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 16.49 |
F-Score7
WACC12.05%
ROIC/WACC1.9
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 Y19.03%
EPS Next 2Y23.01%
EPS Next 3Y16.96%
EPS Next 5Y17.88%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year10.95%
Revenue Next 2Y15.42%
Revenue Next 3Y13.03%
Revenue Next 5Y11.65%
EBIT growth 1Y3.91%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year18.08%
EBIT Next 3Y19.3%
EBIT Next 5Y15.64%
FCF growth 1Y-19.63%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-0.41%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / AMAT Fundamental Analysis 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.
What is the profitability of AMAT stock?
APPLIED MATERIALS INC (AMAT) has a profitability rating of 9 / 10.
What is the expected EPS growth for APPLIED MATERIALS INC (AMAT) stock?
The Earnings per Share (EPS) of APPLIED MATERIALS INC (AMAT) is expected to grow by 19.03% in the next year.
Can you provide the dividend sustainability for AMAT stock?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 7 / 10 and the dividend payout ratio is 18.15%.