APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
NASDAQ:AMAT • US0382221051
369.83 USD
+0.53 (+0.14%)
At close: Feb 19, 2026
369.5 USD
-0.33 (-0.09%)
After Hours: 2/19/2026, 8:00:01 PM
AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a decent growth rate and is not valued too expensively. 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.
- In the past year AMAT had a positive cash flow from operations.
- In the past 5 years AMAT has always 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 (19.28%) than 93.81% of its industry peers.
- AMAT's Return On Equity of 34.28% is amongst the best of the industry. AMAT outperforms 93.81% of its industry peers.
- AMAT has a Return On Invested Capital of 24.38%. This is amongst the best in the industry. AMAT outperforms 95.58% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.70%.
| 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's Profit Margin of 24.67% is amongst the best of the industry. AMAT outperforms 82.30% of its industry peers.
- In the last couple of years the Profit Margin of AMAT has grown nicely.
- 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
- 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
- AMAT has less shares outstanding than it did 5 years ago.
- AMAT has a better debt/assets ratio than last year.
2.2 Solvency
- AMAT has an Altman-Z score of 15.18. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
- AMAT has a Altman-Z score of 15.18. This is amongst the best in the industry. AMAT outperforms 82.30% 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 has a Debt to FCF ratio of 1.15. This is in the better half of the industry: AMAT outperforms 70.80% 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 62.83% of its industry peers.
- 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 | 15.18 |
ROIC/WACC2.27
WACC10.76%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
- AMAT has a Current ratio (2.61) which is in line with its industry peers.
- 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 41.59% 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.
- AMAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
- The Revenue has been growing slightly by 2.10% 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)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
- AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
- AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
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
- 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
- The Price/Earnings ratio is 39.26, which means the current valuation is very expensive for AMAT.
- Compared to the rest of the industry, the Price/Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 76.11% of the companies listed in the same industry.
- AMAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.09.
- AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 30.13.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 70.80% of the companies are valued more expensively.
- AMAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.26 | ||
| Fwd PE | 30.13 |
4.2 Price Multiples
- AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 69.03% 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 69.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.52 | ||
| EV/EBITDA | 32.53 |
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.
- AMAT's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.33
PEG (5Y)2.22
EPS Next 2Y14.15%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.50%, AMAT is not a good candidate for dividend investing.
- AMAT's Dividend Yield is a higher than the industry average which is at 0.50.
- Compared to an average S&P500 Dividend Yield of 1.85, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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.
- 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%
369.83
+0.53 (+0.14%)
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 Change0.51%
Ins Owners0.27%
Ins Owner Change1.48%
Market Cap293.54B
Revenue(TTM)28.21B
Net Income(TTM)7.00B
Analysts80
Price Target329.63 (-10.87%)
Short Float %1.74%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)23.77%
PT rev (3m)49.27%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)3.3%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.26 | ||
| Fwd PE | 30.13 | ||
| P/S | 10.35 | ||
| P/FCF | 51.52 | ||
| P/OCF | 36.89 | ||
| P/B | 14.38 | ||
| P/tB | 17.81 | ||
| EV/EBITDA | 32.53 |
EPS(TTM)9.42
EY2.55%
EPS(NY)12.27
Fwd EY3.32%
FCF(TTM)7.18
FCFY1.94%
OCF(TTM)10.03
OCFY2.71%
SpS35.74
BVpS25.72
TBVpS20.77
PEG (NY)9.33
PEG (5Y)2.22
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 | 15.18 |
F-Score6
WACC10.76%
ROIC/WACC2.27
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 39.26 and the Price/Book (PB) ratio is 14.38.
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%.