APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
NASDAQ:AMAT • US0382221051
394.95 USD
+17.02 (+4.5%)
At close: Feb 25, 2026
393.2 USD
-1.75 (-0.44%)
After Hours: 2/25/2026, 8:00:01 PM
We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 114 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AMAT a very profitable company, without any liquidiy or solvency issues. AMAT has a correct valuation and a medium growth rate. With these ratings, AMAT could be worth investigating further 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.
- AMAT had positive earnings in each of the past 5 years.
- AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AMAT has a better Return On Assets (19.28%) than 93.86% of its industry peers.
- The Return On Equity of AMAT (34.28%) is better than 93.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 24.38%, AMAT belongs to the top of the industry, outperforming 95.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AMAT is significantly above the industry average of 10.62%.
| 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
- AMAT's Profit Margin of 24.67% is amongst the best of the industry. AMAT outperforms 83.33% of its industry peers.
- AMAT's Profit Margin has improved in the last couple of years.
- The Operating Margin of AMAT (29.86%) is better than 90.35% of its industry peers.
- In the last couple of years the Operating Margin of AMAT has grown nicely.
- The Gross Margin of AMAT (48.67%) is comparable to the rest of the industry.
- 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.
- 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
- AMAT has an Altman-Z score of 15.44. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AMAT (15.44) is better than 81.58% of its industry peers.
- The Debt to FCF ratio of AMAT is 1.15, which is an excellent value as it means it would take AMAT, only 1.15 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.15, AMAT is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
- AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- AMAT's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. AMAT is outperformed by 62.28% 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 | 1.15 | ||
| Altman-Z | 15.44 |
ROIC/WACC2.29
WACC10.67%
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.
- The Current ratio of AMAT (2.61) is comparable to the rest of the industry.
- A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.90, AMAT perfoms like the industry average, outperforming 41.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
- AMAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.72%.
- 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.
- Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 2.10% in the last year.
- AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.52% yearly.
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
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 11.04% on average per year.
- AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue Next Year9.29%
Revenue Next 2Y14.12%
Revenue Next 3Y12.13%
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
- AMAT is valuated quite expensively with a Price/Earnings ratio of 41.93.
- Compared to the rest of the industry, the Price/Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 74.56% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.05, AMAT is valued quite expensively.
- With a Price/Forward Earnings ratio of 32.18, AMAT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
- AMAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 32.18 |
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 67.54% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.02 | ||
| EV/EBITDA | 33.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AMAT's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)9.97
PEG (5Y)2.38
EPS Next 2Y14.15%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.50%, AMAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.50, AMAT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.50, AMAT pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
- AMAT pays out 19.78% 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.
DP19.78%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
394.95
+17.02 (+4.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-14 2026-05-14/amc
Inst Owners85.06%
Inst Owner Change0.46%
Ins Owners0.27%
Ins Owner Change1.41%
Market Cap313.48B
Revenue(TTM)28.21B
Net Income(TTM)7.00B
Analysts80
Price Target329.63 (-16.54%)
Short Float %1.74%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19 2026-02-19 (0.46)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.63%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.02%
Min EPS beat(4)1.29%
Max EPS beat(4)3.04%
EPS beat(8)8
Avg EPS beat(8)3.4%
EPS beat(12)12
Avg EPS beat(12)3.99%
EPS beat(16)14
Avg EPS beat(16)4.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)17.14%
PT rev (3m)37.47%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0.67%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)6.73%
Revenue NY rev (3m)6.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 32.18 | ||
| P/S | 11.05 | ||
| P/FCF | 55.02 | ||
| P/OCF | 39.39 | ||
| P/B | 15.36 | ||
| P/tB | 19.02 | ||
| EV/EBITDA | 33.3 |
EPS(TTM)9.42
EY2.39%
EPS(NY)12.27
Fwd EY3.11%
FCF(TTM)7.18
FCFY1.82%
OCF(TTM)10.03
OCFY2.54%
SpS35.74
BVpS25.72
TBVpS20.77
PEG (NY)9.97
PEG (5Y)2.38
Graham Number73.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROCE | 29.93% | ||
| ROIC | 24.38% | ||
| ROICexc | 34.93% | ||
| ROICexgc | 43.57% | ||
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% | ||
| FCFM | 20.09% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
ROICexc(3y)36.63%
ROICexc(5y)37.97%
ROICexgc(3y)47.26%
ROICexgc(5y)49.64%
ROCE(3y)31.01%
ROCE(5y)34.04%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y3.53%
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%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 519.54% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | 35.44 | ||
| Cash Conversion | 89.37% | ||
| Profit Quality | 81.42% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 15.44 |
F-Score6
WACC10.67%
ROIC/WACC2.29
Cap/Depr(3y)345.96%
Cap/Depr(5y)276.93%
Cap/Sales(3y)5.51%
Cap/Sales(5y)4.49%
Profit Quality(3y)98.84%
Profit Quality(5y)89.65%
High Growth Momentum
Growth
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year9.29%
Revenue Next 2Y14.12%
Revenue Next 3Y12.13%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.51%
EBIT Next 3Y10.35%
EBIT Next 5Y10.57%
FCF growth 1Y-23.89%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-8.29%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
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 41.93 and the Price/Book (PB) ratio is 15.36.
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%.