APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
USA - NASDAQ:AMAT - US0382221051 - Common Stock
223.23 USD
-7.5 (-3.25%)
213.1 USD
-10.13 (-4.54%)
We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 112 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 has a correct valuation and a medium growth rate. These ratings could make AMAT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year AMAT was profitable.
AMAT had a positive operating cash flow in the past year.
Of the past 5 years AMAT 4 years were profitable.
Of the past 5 years AMAT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMAT (19.97%) is better than 91.96% of its industry peers.
Looking at the Return On Equity, with a value of 35.03%, AMAT belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Invested Capital of AMAT (28.12%) is better than 96.43% 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 10.93%.
| 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
With an excellent Profit Margin value of 23.88%, AMAT belongs to the best 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.
Looking at the Operating Margin, with a value of 30.14%, AMAT belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
In the last couple of years the Operating Margin of AMAT has grown nicely.
With a Gross Margin value of 48.50%, AMAT perfoms like the industry average, outperforming 58.93% of the companies in the same 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.
AMAT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 11.78 indicates that AMAT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.78, AMAT is in the better half of the industry, outperforming 77.68% of the companies in the same industry.
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 75.89% 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 Debt to Equity ratio of 0.32. This is in the lower half of the industry: AMAT underperforms 62.50% 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 | 1.08 | ||
| Altman-Z | 11.78 |
ROIC/WACC2.64
WACC10.66%
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.
AMAT's Current ratio of 2.50 is in line compared to the rest of the industry. AMAT outperforms 42.86% of its industry peers.
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 comparable to the rest of the industry: AMAT outperforms 41.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.12% over the past year.
AMAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
The Revenue has been growing slightly by 6.55% in the past year.
Measured over the past years, AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 13.22% on average per year.
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 10.23% on average over the next years. This is quite good.
Based on estimates for the next years, AMAT will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y9.78%
EPS Next 2Y5.58%
EPS Next 3Y8.64%
EPS Next 5Y10.23%
Revenue Next Year4.26%
Revenue Next 2Y3.32%
Revenue Next 3Y5.43%
Revenue Next 5Y7.06%
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
AMAT is valuated rather expensively with a Price/Earnings ratio of 23.33.
82.14% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
AMAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 23.12, which indicates a rather expensive current valuation of AMAT.
AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 70.54% of the companies in the same industry.
AMAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 23.12 |
4.2 Price Multiples
AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 70.54% of the companies in the same industry.
79.46% of the companies in the same industry are more expensive than AMAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.54 | ||
| EV/EBITDA | 19.95 |
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)2.39
PEG (5Y)1.01
EPS Next 2Y5.58%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 2.16, 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 0.82, AMAT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
AMAT pays out 19.73% of its income as dividend. This is a sustainable payout ratio.
AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y5.58%
EPS Next 3Y8.64%
223.23
-7.5 (-3.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change-1.36%
Ins Owners0.26%
Ins Owner Change-0.02%
Market Cap177.83B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.07
Price Target220.82 (-1.08%)
Short Float %2.33%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)10.07%
PT rev (3m)6.32%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 23.12 | ||
| P/S | 6.22 | ||
| P/FCF | 30.54 | ||
| P/OCF | 23.08 | ||
| P/B | 9.12 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 19.95 |
EPS(TTM)9.57
EY4.29%
EPS(NY)9.65
Fwd EY4.32%
FCF(TTM)7.31
FCFY3.27%
OCF(TTM)9.67
OCFY4.33%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)2.39
PEG (5Y)1.01
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 | 11.78 |
F-Score7
WACC10.66%
ROIC/WACC2.64
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 Y9.78%
EPS Next 2Y5.58%
EPS Next 3Y8.64%
EPS Next 5Y10.23%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.26%
Revenue Next 2Y3.32%
Revenue Next 3Y5.43%
Revenue Next 5Y7.06%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y6.9%
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 5 / 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%.