259.26 USD
+2.85 (+1.11%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. AMAT has a correct valuation and a medium growth rate. These ratings would make AMAT suitable 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.
AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AMAT (19.97%) is better than 92.92% of its industry peers.
AMAT has a Return On Equity of 35.03%. This is amongst the best in the industry. AMAT outperforms 93.81% of its industry peers.
AMAT's Return On Invested Capital of 25.99% is amongst the best of the industry. AMAT outperforms 96.46% 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 10.77%.
The 3 year average ROIC (25.04%) for AMAT is below the current ROIC(25.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 25.99% |
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 23.88%. This is amongst the best in the industry. AMAT outperforms 82.30% of its industry peers.
In the last couple of years the Profit Margin of AMAT has grown nicely.
The Operating Margin of AMAT (30.14%) is better than 90.27% of its industry peers.
AMAT's Operating Margin has improved in the last couple of years.
AMAT has a Gross Margin of 48.50%. 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 | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
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
The number of shares outstanding for AMAT has been reduced compared to 5 years ago.
AMAT has a better debt/assets ratio than last year.
2.2 Solvency
AMAT has an Altman-Z score of 12.61. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
AMAT has a Altman-Z score of 12.61. This is in the better half of the industry: AMAT outperforms 78.76% of its industry peers.
AMAT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
AMAT has a better Debt to FCF ratio (1.08) than 75.22% 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 63.72% 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 | 1.08 | ||
| Altman-Z | 12.61 |
ROIC/WACC2.45
WACC10.62%
2.3 Liquidity
AMAT has a Current Ratio of 2.50. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
AMAT has a Current ratio of 2.50. This is comparable to the rest of the industry: AMAT outperforms 43.36% of its industry peers.
A Quick Ratio of 1.79 indicates that AMAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.79, AMAT is doing worse than 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% 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.
Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% 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)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.
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
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
AMAT is valuated quite expensively with a Price/Earnings ratio of 27.52.
79.65% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
AMAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
AMAT is valuated quite expensively with a Price/Forward Earnings ratio of 26.78.
Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 66.37% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (23.84), we can say AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 26.78 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 77.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.47 | ||
| EV/EBITDA | 22.21 |
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)9.95
PEG (5Y)1.56
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.73%, which is pretty low.
AMAT's Dividend Yield is a higher than the industry average which is at 0.56.
Compared to an average S&P500 Dividend Yield of 1.87, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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 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
AMAT pays out 19.73% 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.
DP19.73%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
NASDAQ:AMAT (12/22/2025, 3:37:00 PM)
259.26
+2.85 (+1.11%)
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 Change4.54%
Market Cap206.54B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target254.65 (-1.78%)
Short Float %2.39%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years7
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.29%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.57%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)3.7%
EPS beat(12)12
Avg EPS beat(12)5.12%
EPS beat(16)13
Avg EPS beat(16)3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)6.2%
PT rev (3m)28.77%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 26.78 | ||
| P/S | 7.22 | ||
| P/FCF | 35.47 | ||
| P/OCF | 26.81 | ||
| P/B | 10.59 | ||
| P/tB | 13.31 | ||
| EV/EBITDA | 22.21 |
EPS(TTM)9.42
EY3.63%
EPS(NY)9.68
Fwd EY3.73%
FCF(TTM)7.31
FCFY2.82%
OCF(TTM)9.67
OCFY3.73%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)9.95
PEG (5Y)1.56
Graham Number72.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 25.99% | ||
| ROICexc | 35.05% | ||
| ROICexgc | 43.72% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 436.66% | ||
| Cap/Sales | 6.58% | ||
| Interest Coverage | 36.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 85.23% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 12.61 |
F-Score6
WACC10.62%
ROIC/WACC2.45
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year6.89%
EBIT Next 3Y9.34%
EBIT Next 5Y10.57%
FCF growth 1Y-11.3%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y0.63%
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.
What is the valuation status of APPLIED MATERIALS INC (AMAT) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (AMAT). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLIED MATERIALS INC?
APPLIED MATERIALS INC (AMAT) has a profitability rating of 9 / 10.
What is the financial health of APPLIED MATERIALS INC (AMAT) stock?
The financial health rating of APPLIED MATERIALS INC (AMAT) is 7 / 10.
How sustainable is the dividend of APPLIED MATERIALS INC (AMAT) stock?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 5 / 10 and the dividend payout ratio is 19.73%.