256.99 USD
-2.98 (-1.15%)
256.89 USD
-0.1 (-0.04%)
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. These ratings could make AMAT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
AMAT had positive earnings in the past year.
In the past year AMAT had a positive cash flow from operations.
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 (19.28%) is better than 92.92% of its industry peers.
AMAT has a better Return On Equity (34.28%) than 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 10.75%.
| 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 82.30% of its industry peers.
AMAT's Profit Margin has improved in the last couple of years.
AMAT has a better Operating Margin (29.86%) than 90.27% of its industry peers.
In the last couple of years the Operating Margin of AMAT has grown nicely.
AMAT has a Gross Margin (48.67%) which is in line with its industry peers.
AMAT's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AMAT is creating value.
The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
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
An Altman-Z score of 11.84 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT has a better Altman-Z score (11.84) than 78.76% 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 better Debt to FCF ratio (1.15) than 74.34% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
AMAT has a worse Debt to Equity ratio (0.32) than 62.83% 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 | 1.15 | ||
| Altman-Z | 11.84 |
ROIC/WACC2.26
WACC10.77%
2.3 Liquidity
A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
The Current ratio of AMAT (2.61) is comparable to the rest of the industry.
A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
AMAT has a Quick ratio (1.90) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
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.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
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
With a Price/Earnings ratio of 27.28, AMAT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 78.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (26.51), we can say AMAT is valued inline with the index average.
A Price/Forward Earnings ratio of 26.51 indicates a quite expensive valuation of AMAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 65.49% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (23.13), we can say AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 26.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 70.80% of the companies listed 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 76.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 22.6 |
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.
PEG (NY)9.42
PEG (5Y)1.55
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.71%, which is pretty low.
AMAT's Dividend Yield is a higher than the industry average which is at 0.56.
With a Dividend Yield of 0.71, AMAT pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 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 2Y11.54%
EPS Next 3Y9.31%
256.99
-2.98 (-1.15%)
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 Change1.4%
Market Cap204.73B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78
Price Target266.33 (3.63%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date
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)11.08%
PT rev (3m)34.68%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 26.51 | ||
| P/S | 7.22 | ||
| P/FCF | 35.93 | ||
| P/OCF | 25.73 | ||
| P/B | 10.03 | ||
| P/tB | 12.42 | ||
| EV/EBITDA | 22.6 |
EPS(TTM)9.42
EY3.67%
EPS(NY)9.69
Fwd EY3.77%
FCF(TTM)7.15
FCFY2.78%
OCF(TTM)9.99
OCFY3.89%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)9.42
PEG (5Y)1.55
Graham Number73.7
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 | 11.84 |
F-Score6
WACC10.77%
ROIC/WACC2.26
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 Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.12%
EBIT Next 3Y9.46%
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 27.28 and the Price/Book (PB) ratio is 10.03.
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%.