How does APPLIED MATERIALS INC (NASDAQ:AMAT) stack up against Peter Lynch’s investment principles?

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.

Is APPLIED MATERIALS INC (NASDAQ:AMAT) the type of stock Peter Lynch would love?

• The Return on Equity (ROE) of AMAT stands at 34.06%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• At a Debt/Equity ratio of 0.34, AMAT seems well-positioned to sustain growth while keeping debt in check.
• AMAT has experienced 23.21 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• Considering its PEG ratio of 0.72, AMAT may be an undervalued growth opportunity.
• With a Current Ratio of 2.68, AMAT demonstrates solid short-term financial stability.

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.

Taking everything into account, AMAT scores 7 out of 10 in our fundamental rating. AMAT was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a decent growth rate and is not valued too expensively. This makes AMAT very considerable for quality investing!

Our latest full fundamental report of AMAT contains the most current fundamental analsysis.

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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.