327.09 USD
+4.77 (+1.48%)
Last: Feb 2, 2026, 12:06 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 gets an excellent profitability rating and is at the same time showing great financial health properties. AMAT is not valued too expensively and it also shows a decent growth rate. These ratings would make AMAT suitable 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.
- In the past 5 years AMAT always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.28%, AMAT belongs to the top of the industry, outperforming 92.92% of the companies in the same industry.
- AMAT's Return On Equity of 34.28% is amongst the best of the industry. AMAT outperforms 93.81% of its industry peers.
- AMAT's Return On Invested Capital of 24.38% is amongst the best of the industry. AMAT outperforms 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
- With an excellent Profit Margin value of 24.67%, AMAT belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
- In the last couple of years the Profit Margin of AMAT has grown nicely.
- The Operating Margin of AMAT (29.86%) is better 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 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
- AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
- Compared to 5 years ago, AMAT has less shares outstanding
- The debt/assets ratio for AMAT has been reduced compared to a year ago.
2.2 Solvency
- AMAT has an Altman-Z score of 13.81. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AMAT (13.81) is better 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.
- The Debt to FCF ratio of AMAT (1.15) is better than 74.34% of its industry peers.
- A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
- The Debt to Equity ratio of AMAT (0.32) is worse 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 | 13.81 |
ROIC/WACC2.24
WACC10.89%
2.3 Liquidity
- AMAT has a Current Ratio of 2.61. This indicates that AMAT is financially healthy and has no problem in meeting 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.
- A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
- AMAT's Quick ratio of 1.90 is in line compared to the rest of the industry. AMAT outperforms 41.59% of 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.
- Measured over the past years, AMAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
- AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
- The Revenue has been growing by 10.52% on average over the past years. This is quite good.
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.
- 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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- With a Price/Earnings ratio of 34.72, AMAT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 79.65% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. AMAT is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 33.55 indicates a quite expensive valuation of AMAT.
- AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 64.60% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (25.57), we can say AMAT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 33.55 |
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 74.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.73 | ||
| EV/EBITDA | 28.45 |
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.
- AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.89
PEG (5Y)1.97
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.
- Compared to an average industry Dividend Yield of 0.50, AMAT pays a bit more dividend than its industry peers.
- 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 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
- 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 34.72 and the Price/Book (PB) ratio is 12.76.
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%.