APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
USA - NASDAQ:AMAT - US0382221051 - Common Stock
237.95 USD
+2.2 (+0.93%)
Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 112 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 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.
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
AMAT has a better Return On Assets (19.97%) than 91.07% of its industry peers.
AMAT has a Return On Equity of 35.03%. This is amongst the best in the industry. AMAT outperforms 92.86% of its industry peers.
AMAT has a Return On Invested Capital of 28.12%. This is amongst the best in the industry. AMAT outperforms 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 11.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 28.12% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
1.3 Margins
Looking at the Profit Margin, with a value of 23.88%, AMAT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
AMAT's Profit Margin has improved in the last couple of years.
AMAT has a better Operating Margin (30.14%) than 90.18% of its industry peers.
AMAT's Operating Margin has improved in the last couple of years.
AMAT has a Gross Margin (48.50%) which is comparable to the rest of the industry.
AMAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
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.
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 11.94 indicates that AMAT is not in any danger for bankruptcy at the moment.
AMAT has a Altman-Z score of 11.94. This is in the better half of the industry: AMAT outperforms 74.11% 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's Debt to FCF ratio of 1.08 is fine compared to the rest of the industry. AMAT outperforms 75.00% 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.
AMAT has a worse Debt to Equity ratio (0.32) than 62.50% 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 | 1.08 | ||
| Altman-Z | 11.94 |
ROIC/WACC2.43
WACC11.59%
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.
The Current ratio of AMAT (2.50) is comparable to the rest of the industry.
AMAT has a Quick Ratio of 1.79. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting its short term obligations.
AMAT has a Quick ratio of 1.79. This is in the lower half of the industry: AMAT underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
AMAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.12%, which is quite good.
Measured over the past years, AMAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.21% on average per year.
Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
The Revenue has been growing by 13.22% on average over the past years. This is quite good.
EPS 1Y (TTM)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y9.91%
EPS Next 2Y5.78%
EPS Next 3Y8.7%
EPS Next 5Y10.71%
Revenue Next Year4.33%
Revenue Next 2Y3.45%
Revenue Next 3Y5.32%
Revenue Next 5Y7.44%
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
Based on the Price/Earnings ratio of 24.86, the valuation of AMAT can be described as rather expensive.
AMAT's Price/Earnings ratio is rather cheap when compared to the industry. AMAT is cheaper than 82.14% of the companies in the same industry.
AMAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 24.56, which indicates a rather expensive current valuation of AMAT.
72.32% 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 22.63, AMAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 24.56 |
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 70.54% of the companies listed in the same industry.
AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.55 | ||
| EV/EBITDA | 20.39 |
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)2.51
PEG (5Y)1.07
EPS Next 2Y5.78%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 2.18, AMAT pays a better dividend. On top of this AMAT pays more dividend than 81.25% of the companies listed in the same industry.
With a Dividend Yield of 0.81, AMAT pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of AMAT is nicely growing with an annual growth rate of 12.01%!
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)12.01%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
19.73% of the earnings are spent on dividend by AMAT. This is a low number and 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 2Y5.78%
EPS Next 3Y8.7%
NASDAQ:AMAT (10/30/2025, 11:01:09 AM)
237.95
+2.2 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change-0.51%
Ins Owners0.26%
Ins Owner Change-0.05%
Market Cap189.56B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.56
Price Target200.62 (-15.69%)
Short Float %2.33%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.44
Dividend Growth(5Y)12.01%
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)1.45%
PT rev (3m)-2.06%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-8.92%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 24.56 | ||
| P/S | 6.62 | ||
| P/FCF | 32.55 | ||
| P/OCF | 24.6 | ||
| P/B | 9.72 | ||
| P/tB | 12.22 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)9.57
EY4.02%
EPS(NY)9.69
Fwd EY4.07%
FCF(TTM)7.31
FCFY3.07%
OCF(TTM)9.67
OCFY4.06%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)2.51
PEG (5Y)1.07
Graham Number72.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 28.12% | ||
| ROICexc | 37.92% | ||
| ROICexgc | 47.29% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
ROICexc(3y)39.77%
ROICexc(5y)39.3%
ROICexgc(3y)51.88%
ROICexgc(5y)52.37%
ROCE(3y)34.44%
ROCE(5y)32.94%
ROICexgc growth 3Y-7.9%
ROICexgc growth 5Y3.47%
ROICexc growth 3Y-6.23%
ROICexc growth 5Y6.64%
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
F-Score7
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 | 11.94 |
F-Score7
WACC11.59%
ROIC/WACC2.43
Cap/Depr(3y)231.86%
Cap/Depr(5y)195.47%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.39%
Profit Quality(3y)95.26%
Profit Quality(5y)92.06%
High Growth Momentum
Growth
EPS 1Y (TTM)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
EPS Next Y9.91%
EPS Next 2Y5.78%
EPS Next 3Y8.7%
EPS Next 5Y10.71%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.33%
Revenue Next 2Y3.45%
Revenue Next 3Y5.32%
Revenue Next 5Y7.44%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y7.47%
FCF growth 1Y-16.6%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-3.71%
OCF growth 3Y16.83%
OCF growth 5Y21.72%
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 6 / 10 and the dividend payout ratio is 19.73%.