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Is NASDAQ:AMAT a Suitable Choice for Quality Investing?

By Mill Chart

Last update: Apr 17, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if APPLIED MATERIALS INC (NASDAQ:AMAT) is suited for quality investing. Investors should of course do their own research, but we spotted APPLIED MATERIALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • APPLIED MATERIALS INC has achieved substantial revenue growth over the past 5 years, with a 9.68% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a notable ROIC excluding cash and goodwill at 51.19%, APPLIED MATERIALS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • APPLIED MATERIALS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.74, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of APPLIED MATERIALS INC stands at 91.93%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • APPLIED MATERIALS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 11.19%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • APPLIED MATERIALS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals of NASDAQ:AMAT?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall AMAT gets a fundamental rating of 7 out of 10. We evaluated AMAT against 107 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. These ratings would make AMAT suitable for quality investing!

Check the latest full fundamental report of AMAT for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:AMAT (5/24/2024, 7:13:40 PM)

After market: 220.9 0.01 (0%)


+2.94 (+1.35%)


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