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. 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. These ratings could make AMAT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
AMAT had positive earnings in the past year.
AMAT had a positive operating cash flow in the past year.
AMAT had positive earnings in each of the past 5 years.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
AMAT has a Return On Assets of 20.86%. This is amongst the best in the industry. AMAT outperforms 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.
The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 11.05%.
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.
AMAT's Gross Margin of 47.46% is in line compared to the rest of the industry. AMAT outperforms 56.48% of its industry peers.
AMAT's Gross Margin has improved in the last couple of years.
| 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.
AMAT has a better debt/assets ratio than last year.
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.
Looking at the Debt to Equity ratio, with a value of 0.33, AMAT is doing worse than 62.04% of the companies in the same industry.
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/WACC1.77
WACC14.66%
2.3 Liquidity
A Current Ratio of 2.51 indicates that AMAT has no problem at all paying 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.
AMAT's Quick ratio of 1.87 is in line compared to the rest of the industry. AMAT outperforms 46.30% of its industry peers.
| 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.
AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
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
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.
The Revenue is expected to grow by 8.34% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 20.29, the valuation of AMAT can be described as rather expensive.
80.56% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (28.96), we can say AMAT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.78, AMAT is valued on the expensive side.
AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AMAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a rather cheap valuation: AMAT is cheaper than 87.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 16.88 |
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)1.43
PEG (5Y)0.87
EPS Next 2Y12.94%
EPS Next 3Y11.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, AMAT is not a good candidate for dividend investing.
AMAT's Dividend Yield is a higher than the industry average which is at 2.37.
With a Dividend Yield of 0.94, AMAT pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of AMAT is nicely growing with an annual growth rate of 11.93%!
AMAT has been paying a dividend for at least 10 years, so it has 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
16.61% of the earnings are spent on dividend by AMAT. This is a low number and 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, 8:12:00 PM)
Premarket: 175.4 -0.35 (-0.2%)175.75
+5.26 (+3.09%)
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 Cap144.89B
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 20.29 | ||
| Fwd PE | 17.78 | ||
| 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