322.32 USD
-19.02 (-5.57%)
At close: Jan 30, 2026
321.5 USD
-0.82 (-0.25%)
After Hours: 1/30/2026, 8:00:00 PM
Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate. This makes AMAT very considerable 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.
- Each year in the past 5 years AMAT has been profitable.
- AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AMAT (19.28%) is better than 92.92% of its industry peers.
- The Return On Equity of AMAT (34.28%) is better than 93.81% of its industry peers.
- The Return On Invested Capital of AMAT (24.38%) is better than 95.58% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AMAT is significantly above the industry average of 10.85%.
| 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
- The Profit Margin of AMAT (24.67%) is better than 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 of 48.67%. This is comparable to the rest of the industry: AMAT outperforms 59.29% of its industry peers.
- 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.
- Compared to 1 year ago, AMAT has less shares outstanding
- 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 13.81 indicates that AMAT is not in any danger for bankruptcy at the moment.
- AMAT has a better Altman-Z score (13.81) than 80.53% 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 74.34% 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 | 13.81 |
ROIC/WACC2.24
WACC10.89%
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 of 2.61. This is comparable to the rest of the industry: AMAT outperforms 44.25% of 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 42.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
- AMAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.78%, which is quite good.
- 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 4.39% 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)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 11.04% on average per year.
- AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y3.51%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
EPS Next 5Y11.04%
Revenue Next Year2.4%
Revenue Next 2Y8.26%
Revenue Next 3Y6.88%
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
- A Price/Earnings ratio of 34.22 indicates a quite expensive valuation of AMAT.
- Compared to the rest of the industry, the Price/Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 78.76% of the companies listed in the same industry.
- AMAT is valuated rather expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 33.06.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 64.60% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. AMAT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.22 | ||
| Fwd PE | 33.06 |
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.
- 75.22% of the companies in the same industry are more expensive than AMAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.06 | ||
| EV/EBITDA | 28.45 |
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.
PEG (NY)9.75
PEG (5Y)1.94
EPS Next 2Y12.63%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
- AMAT has a yearly dividend return of 0.54%, which is pretty low.
- 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 1.83, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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 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 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.
- AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y12.63%
EPS Next 3Y9.69%
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 34.22 and the Price/Book (PB) ratio is 12.58.
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%.