Following Peter Lynch’s approach: Does APPLIED MATERIALS INC (NASDAQ:AMAT) fit the bill?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if APPLIED MATERIALS INC (NASDAQ:AMAT) fits his winning formula.

Following Peter Lynch’s approach: Does APPLIED MATERIALS INC (NASDAQ:AMAT) fit the bill?

• AMAT showcases a robust Return on Equity (ROE) of 34.06%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• A Debt/Equity ratio of 0.34 highlights AMAT's commitment to maintaining financial stability.
• The 5-year EPS growth of AMAT (23.21) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With a PEG ratio of 0.74, AMAT appears to be fairly valued given its strong growth prospects.
• A Current Ratio of 2.68 suggests that AMAT is in a solid financial position to handle short-term market fluctuations.

A complete fundamental analysis of AMAT

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively. With these ratings, AMAT could be worth investigating further for quality investing!.

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

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Disclaimer

This article should in no way be interpreted as advice. 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.