APPLIED MATERIALS INC (AMAT)
US0382221051 - Common Stock
Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.86%, AMAT belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
The Return On Equity of AMAT (37.77%) is better than 93.52% of its industry peers.
AMAT has a Return On Invested Capital of 26.02%. This is amongst the best in the industry. AMAT outperforms 97.22% 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 11.24%.
The last Return On Invested Capital (26.02%) for AMAT is well below the 3 year average (30.16%), which needs to be investigated, but indicates that AMAT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROIC | 26.02% |
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
With an excellent Profit Margin value of 26.41%, AMAT belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
In the last couple of years the Profit Margin of AMAT has grown nicely.
Looking at the Operating Margin, with a value of 28.95%, AMAT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
AMAT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 47.46%, AMAT perfoms like the industry average, outperforming 56.48% of the companies in the same industry.
In the last couple of years the Gross Margin of AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% |
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.
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 a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.84, AMAT belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that AMAT is not too dependend on debt financing.
AMAT's Debt to Equity ratio of 0.33 is on the low side compared to the rest of the industry. AMAT is outperformed by 62.96% 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 | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC1.69
WACC15.41%
2.3 Liquidity
AMAT has a Current Ratio of 2.51. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
AMAT's Current ratio of 2.51 is in line compared to the rest of the industry. AMAT outperforms 44.44% of its industry peers.
A Quick Ratio of 1.87 indicates that AMAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.87, AMAT is in line with its industry, outperforming 46.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.58% over the past year.
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 2.49% in the last year.
AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.22% yearly.
EPS 1Y (TTM)7.58%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%9.43%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%4.79%
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 11.44% on average per year.
Based on estimates for the next years, AMAT will show a quite strong growth in Revenue. The Revenue will grow by 8.06% on average per year.
EPS Next Y11.68%
EPS Next 2Y12.21%
EPS Next 3Y11.7%
EPS Next 5Y11.44%
Revenue Next Year8.91%
Revenue Next 2Y8.86%
Revenue Next 3Y7.74%
Revenue Next 5Y8.06%
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.
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
A Price/Earnings ratio of 18.89 indicates a rather expensive valuation of AMAT.
Based on the Price/Earnings ratio, AMAT is valued cheaper than 80.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, AMAT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.91, the valuation of AMAT can be described as correct.
Based on the Price/Forward Earnings ratio, AMAT is valued cheaper than 80.56% of the companies in the same industry.
AMAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 75.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMAT is valued cheaply inside the industry as 90.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
AMAT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)0.81
EPS Next 2Y12.21%
EPS Next 3Y11.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.31, AMAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.99, AMAT pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of AMAT grows each year by 12.01%, 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)12.01%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
16.61% 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.
DP16.61%
EPS Next 2Y12.21%
EPS Next 3Y11.7%
APPLIED MATERIALS INC
NASDAQ:AMAT (12/20/2024, 8:00:00 PM)
After market: 163.59 0 (0%)163.59
+2.15 (+1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.43%
Inst Owner Change-0.77%
Ins Owners0.23%
Ins Owner Change-5.45%
Market Cap133.11B
Analysts79.05
Price Target224.28 (37.1%)
Short Float %2.09%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)12.01%
DP16.61%
Div Incr Years7
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.71%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)2.71%
Max EPS beat(4)9.58%
EPS beat(8)8
Avg EPS beat(8)4.97%
EPS beat(12)10
Avg EPS beat(12)4.7%
EPS beat(16)13
Avg EPS beat(16)4.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.43%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-0.68%
Max Revenue beat(4)1.53%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)-4.93%
PT rev (3m)-9.11%
EPS NQ rev (1m)2.53%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 16.91 | ||
| P/S | 4.96 | ||
| P/FCF | 18.01 | ||
| P/OCF | 15.54 | ||
| P/B | 7.1 | ||
| P/tB | 8.98 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)8.66
EY5.29%
EPS(NY)9.67
Fwd EY5.91%
FCF(TTM)9.08
FCFY5.55%
OCF(TTM)10.53
OCFY6.43%
SpS32.96
BVpS23.05
TBVpS18.22
PEG (NY)1.62
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROCE | 30.33% | ||
| ROIC | 26.02% | ||
| ROICexc | 40.29% | ||
| ROICexgc | 52.36% | ||
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% | ||
| FCFM | 27.55% |
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)40.72%
ROICexc(5y)39.87%
ROICexgc(3y)53.45%
ROICexgc(5y)53.32%
ROCE(3y)34.44%
ROCE(5y)32.94%
ROICexcg growth 3Y-4.96%
ROICexcg growth 5Y5.44%
ROICexc growth 3Y-3.91%
ROICexc growth 5Y8.22%
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-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 303.57% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 38.38 | ||
| Cash Conversion | 105.06% | ||
| Profit Quality | 104.32% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | N/A |
F-Score6
WACC15.41%
ROIC/WACC1.69
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)7.58%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%9.43%
EPS Next Y11.68%
EPS Next 2Y12.21%
EPS Next 3Y11.7%
EPS Next 5Y11.44%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%4.79%
Revenue Next Year8.91%
Revenue Next 2Y8.86%
Revenue Next 3Y7.74%
Revenue Next 5Y8.06%
EBIT growth 1Y2.78%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year19.92%
EBIT Next 3Y11.32%
EBIT Next 5YN/A
FCF growth 1Y-1.41%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-0.26%
OCF growth 3Y16.83%
OCF growth 5Y21.72%