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 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. This makes AMAT very considerable 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.
Each year in the past 5 years AMAT has been profitable.
In the past 5 years AMAT always reported a positive cash flow from operatings.
1.2 Ratios
AMAT has a better Return On Assets (20.86%) than 98.15% of its industry peers.
With an excellent Return On Equity value of 37.77%, AMAT belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
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.
AMAT had an Average Return On Invested Capital over the past 3 years of 30.16%. This is significantly above the industry average of 11.05%.
The 3 year average ROIC (30.16%) for AMAT is well above the current ROIC(26.02%). The reason for the recent decline needs to be investigated.
| 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
AMAT has a Profit Margin of 26.41%. This is amongst the best in the industry. AMAT outperforms 87.96% of its industry peers.
AMAT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.95%, AMAT belongs to the best 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, AMAT has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AMAT is 0.84, which is an excellent value as it means it would take AMAT, only 0.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMAT (0.84) is better than 80.56% of its industry peers.
AMAT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AMAT has a Debt to Equity ratio of 0.33. This is in the lower half of the industry: AMAT underperforms 62.04% 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/WACC1.78
WACC14.59%
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 has a Current ratio (2.51) which is in line with its industry peers.
AMAT has a Quick Ratio of 1.87. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting 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
AMAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.58%.
The Earnings Per Share has been growing by 23.21% on average over the past years. This is a very strong growth
Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 2.49% 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)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
AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.72% yearly.
AMAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.34% yearly.
EPS Next Y14.15%
EPS Next 2Y12.94%
EPS Next 3Y11.3%
EPS Next 5Y13.72%
Revenue Next Year11.2%
Revenue Next 2Y9.9%
Revenue Next 3Y7.73%
Revenue Next 5Y8.34%
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
The Price/Earnings ratio is 20.25, which indicates a rather expensive current valuation of AMAT.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 79.63% of the companies in the same industry.
AMAT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 17.74, AMAT is valued on the expensive side.
77.78% of the companies in the same industry are more expensive than AMAT, based on the Price/Forward Earnings ratio.
AMAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
74.07% of the companies in the same industry are more expensive than AMAT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a rather cheap valuation: AMAT is cheaper than 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.31 | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
AMAT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AMAT may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)0.87
EPS Next 2Y12.94%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.94%, which is pretty low.
AMAT's Dividend Yield is a higher than the industry average which is at 2.37.
Compared to an average S&P500 Dividend Yield of 2.23, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of AMAT grows each year by 11.93%, which is quite nice.
AMAT has paid a dividend for at least 10 years, which is a reliable track record.
AMAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.93%
Div Incr Years6
Div Non Decr Years18
5.3 Sustainability
AMAT pays out 16.61% of its income as dividend. This is a sustainable payout ratio.
AMAT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP16.61%
EPS Next 2Y12.94%
EPS Next 3Y11.3%
APPLIED MATERIALS INC
NASDAQ:AMAT (11/21/2024, 12:06:07 PM)
175.33
+4.84 (+2.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap144.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 17.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.43
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.86% | ||
| ROE | 37.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.95% | ||
| PM (TTM) | 26.41% | ||
| GM | 47.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.58%
EPS 3Y8.08%
EPS 5Y
EPS Q2Q%
EPS Next Y14.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.49%
Revenue growth 3Y5.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y