APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMAT - US0382221051 - Common Stock
202 EUR
+9.5 (+4.94%)
We assign a fundamental rating of 7 out of 10 to 1AMAT. 1AMAT was compared to 60 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1AMAT is not valued too expensively and it also shows a decent growth rate. With these ratings, 1AMAT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
1AMAT had positive earnings in the past year.
In the past year 1AMAT had a positive cash flow from operations.
In the past 5 years 1AMAT has always been profitable.
Each year in the past 5 years 1AMAT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.97%, 1AMAT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
1AMAT's Return On Equity of 35.03% is amongst the best of the industry. 1AMAT outperforms 82.54% of its industry peers.
1AMAT's Return On Invested Capital of 25.99% is amongst the best of the industry. 1AMAT outperforms 87.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AMAT is significantly above the industry average of 15.26%.
The last Return On Invested Capital (25.99%) for 1AMAT is above the 3 year average (25.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 25.99% |
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
1AMAT has a Profit Margin of 23.88%. This is in the better half of the industry: 1AMAT outperforms 76.19% of its industry peers.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
1AMAT has a Operating Margin of 30.14%. This is amongst the best in the industry. 1AMAT outperforms 80.95% of its industry peers.
1AMAT's Operating Margin has improved in the last couple of years.
1AMAT's Gross Margin of 48.50% is in line compared to the rest of the industry. 1AMAT outperforms 50.79% of its industry peers.
In the last couple of years the Gross Margin of 1AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
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
1AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1AMAT has less shares outstanding
Compared to 5 years ago, 1AMAT has less shares outstanding
Compared to 1 year ago, 1AMAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.84 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
1AMAT has a better Altman-Z score (11.84) than 84.13% of its industry peers.
The Debt to FCF ratio of 1AMAT is 1.08, which is an excellent value as it means it would take 1AMAT, only 1.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.08, 1AMAT is doing good in the industry, outperforming 73.02% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
1AMAT's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. 1AMAT outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.84 |
ROIC/WACC2.46
WACC10.57%
2.3 Liquidity
1AMAT has a Current Ratio of 2.50. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.50, 1AMAT is in line with its industry, outperforming 58.73% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that 1AMAT should not have too much problems paying its short term obligations.
1AMAT has a Quick ratio of 1.79. This is in the better half of the industry: 1AMAT outperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% over the past year.
1AMAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
The Revenue has been growing slightly by 4.39% in the past year.
The Revenue has been growing by 10.52% on average over the past years. This is quite good.
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
3.2 Future
Based on estimates for the next years, 1AMAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 24.69, 1AMAT is valued on the expensive side.
65.08% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.47, 1AMAT is valued at the same level.
1AMAT is valuated rather expensively with a Price/Forward Earnings ratio of 24.11.
1AMAT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, 1AMAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
Based on the Price/Free Cash Flow ratio, 1AMAT is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.84 | ||
| EV/EBITDA | 20.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AMAT does not grow enough to justify the current Price/Earnings ratio.
1AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.96
PEG (5Y)1.4
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, 1AMAT is not a good candidate for dividend investing.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.14.
Compared to an average S&P500 Dividend Yield of 2.41, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of 1AMAT grows each year by 14.79%, which is quite nice.
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AMAT pays out 19.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
BIT:1AMAT (11/20/2025, 7:00:00 PM)
202
+9.5 (+4.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap160.92B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target203.46 (0.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.49
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.29%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.57%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)3.7%
EPS beat(12)12
Avg EPS beat(12)5.12%
EPS beat(16)13
Avg EPS beat(16)3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)19.93%
PT rev (3m)17.23%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-12.09%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-6.24%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-9.01%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-5.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 24.11 | ||
| P/S | 6.48 | ||
| P/FCF | 31.84 | ||
| P/OCF | 24.06 | ||
| P/B | 9.5 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 20.12 |
EPS(TTM)8.18
EY4.05%
EPS(NY)8.38
Fwd EY4.15%
FCF(TTM)6.35
FCFY3.14%
OCF(TTM)8.4
OCFY4.16%
SpS31.18
BVpS21.25
TBVpS16.91
PEG (NY)9.96
PEG (5Y)1.4
Graham Number62.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 25.99% | ||
| ROICexc | 35.05% | ||
| ROICexgc | 43.72% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 436.66% | ||
| Cap/Sales | 6.58% | ||
| Interest Coverage | 36.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 85.23% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 11.84 |
F-Score6
WACC10.57%
ROIC/WACC2.46
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)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y6.43%
EBIT Next 5YN/A
FCF growth 1Y-11.3%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y0.63%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / 1AMAT.MI FAQ
Can you provide the ChartMill fundamental rating for APPLIED MATERIALS INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1AMAT.MI.
What is the valuation status of APPLIED MATERIALS INC (1AMAT.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (1AMAT.MI). This can be considered as Fairly Valued.
What is the profitability of 1AMAT stock?
APPLIED MATERIALS INC (1AMAT.MI) 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 (1AMAT.MI) is 24.69 and the Price/Book (PB) ratio is 9.5.
What is the expected EPS growth for APPLIED MATERIALS INC (1AMAT.MI) stock?
The Earnings per Share (EPS) of APPLIED MATERIALS INC (1AMAT.MI) is expected to grow by 2.48% in the next year.