APPLIED MATERIALS INC (1AMAT.MI) Fundamental Analysis & Valuation

BIT:1AMAT • US0382221051

Current stock price

300.25 EUR
+22.55 (+8.12%)
Last:

This 1AMAT.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1AMAT.MI Profitability Analysis

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.
  • 1AMAT had a positive operating cash flow in each of the past 5 years.
1AMAT.MI Yearly Net Income VS EBIT VS OCF VS FCF1AMAT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

1.2 Ratios

  • 1AMAT's Return On Assets of 19.28% is amongst the best of the industry. 1AMAT outperforms 90.63% of its industry peers.
  • The Return On Equity of 1AMAT (34.28%) is better than 81.25% of its industry peers.
  • The Return On Invested Capital of 1AMAT (24.38%) is better than 84.38% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1AMAT is significantly above the industry average of 13.69%.
Industry RankSector Rank
ROA 19.28%
ROE 34.28%
ROIC 24.38%
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
1AMAT.MI Yearly ROA, ROE, ROIC1AMAT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • The Profit Margin of 1AMAT (24.67%) is better than 67.19% of its industry peers.
  • 1AMAT's Profit Margin has improved in the last couple of years.
  • 1AMAT's Operating Margin of 29.86% is fine compared to the rest of the industry. 1AMAT outperforms 71.88% of its industry peers.
  • 1AMAT's Operating Margin has improved in the last couple of years.
  • 1AMAT has a Gross Margin (48.67%) which is in line with its industry peers.
  • 1AMAT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 29.86%
PM (TTM) 24.67%
GM 48.67%
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%
1AMAT.MI Yearly Profit, Operating, Gross Margins1AMAT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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8

2. 1AMAT.MI Health Analysis

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.
  • 1AMAT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, 1AMAT has less shares outstanding
  • The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
1AMAT.MI Yearly Shares Outstanding1AMAT.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
1AMAT.MI Yearly Total Debt VS Total Assets1AMAT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 15.66 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of 1AMAT (15.66) is better than 92.19% of its industry peers.
  • 1AMAT has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
  • 1AMAT has a Debt to FCF ratio of 1.15. This is in the better half of the industry: 1AMAT outperforms 67.19% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
  • 1AMAT has a worse Debt to Equity ratio (0.32) than 60.94% of its industry peers.
  • Although 1AMAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.15
Altman-Z 15.66
ROIC/WACC2.19
WACC11.12%
1AMAT.MI Yearly LT Debt VS Equity VS FCF1AMAT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • 1AMAT has a Current Ratio of 2.61. This indicates that 1AMAT is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of 1AMAT (2.61) is better than 65.63% of its industry peers.
  • A Quick Ratio of 1.90 indicates that 1AMAT should not have too much problems paying its short term obligations.
  • 1AMAT has a better Quick ratio (1.90) than 67.19% of its industry peers.
Industry RankSector Rank
Current Ratio 2.61
Quick Ratio 1.9
1AMAT.MI Yearly Current Assets VS Current Liabilites1AMAT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. 1AMAT.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.72% over the past year.
  • The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 4.39% in the past year.
  • Measured over the past years, 1AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.52% on average per year.
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%

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 11.04% on average per year.
  • The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue Next Year2.77%
Revenue Next 2Y9.21%
Revenue Next 3Y8.41%
Revenue Next 5Y6.57%

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.
1AMAT.MI Yearly Revenue VS Estimates1AMAT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
1AMAT.MI Yearly EPS VS Estimates1AMAT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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2

4. 1AMAT.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1AMAT is valuated quite expensively with a Price/Earnings ratio of 37.02.
  • 1AMAT's Price/Earnings ratio is in line with the industry average.
  • 1AMAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.70.
  • With a Price/Forward Earnings ratio of 28.42, 1AMAT can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1AMAT.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, 1AMAT is valued at the same level.
Industry RankSector Rank
PE 37.02
Fwd PE 28.42
1AMAT.MI Price Earnings VS Forward Price Earnings1AMAT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AMAT indicates a slightly more expensive valuation: 1AMAT is more expensive than 60.94% of the companies listed in the same industry.
  • 1AMAT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 48.59
EV/EBITDA 33.95
1AMAT.MI Per share data1AMAT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • The excellent profitability rating of 1AMAT may justify a higher PE ratio.
  • 1AMAT's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.8
PEG (5Y)2.1
EPS Next 2Y14.15%
EPS Next 3Y12.65%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. 1AMAT.MI Dividend Analysis

5.1 Amount

  • 1AMAT has a yearly dividend return of 0.53%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.71, 1AMAT has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

  • The dividend of 1AMAT is nicely growing with an annual growth rate of 14.79%!
Dividend Growth(5Y)14.79%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 1AMAT pays out 19.78% of its income as dividend. This is a sustainable payout ratio.
  • 1AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
1AMAT.MI Yearly Income VS Free CF VS Dividend1AMAT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
1AMAT.MI Dividend Payout.1AMAT.MI Dividend Payout, showing the Payout Ratio.1AMAT.MI Dividend Payout.PayoutRetained Earnings

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1AMAT.MI Fundamentals: All Metrics, Ratios and Statistics

APPLIED MATERIALS INC

BIT:1AMAT (3/10/2026, 7:00:00 PM)

300.25

+22.55 (+8.12%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-14
Inst Owners85.14%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap238.28B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts81.4
Price Target350.6 (16.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend1.48
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.63%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.02%
Min EPS beat(4)1.29%
Max EPS beat(4)3.04%
EPS beat(8)8
Avg EPS beat(8)3.4%
EPS beat(12)12
Avg EPS beat(12)3.99%
EPS beat(16)14
Avg EPS beat(16)4.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)27.38%
PT rev (3m)45.03%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)3.07%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 37.02
Fwd PE 28.42
P/S 9.76
P/FCF 48.59
P/OCF 34.79
P/B 13.56
P/tB 16.8
EV/EBITDA 33.95
EPS(TTM)8.11
EY2.7%
EPS(NY)10.57
Fwd EY3.52%
FCF(TTM)6.18
FCFY2.06%
OCF(TTM)8.63
OCFY2.87%
SpS30.76
BVpS22.14
TBVpS17.87
PEG (NY)8.8
PEG (5Y)2.1
Graham Number63.56
Profitability
Industry RankSector Rank
ROA 19.28%
ROE 34.28%
ROCE 29.93%
ROIC 24.38%
ROICexc 34.93%
ROICexgc 43.57%
OM 29.86%
PM (TTM) 24.67%
GM 48.67%
FCFM 20.09%
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 Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.15
Debt/EBITDA 0.74
Cap/Depr 519.54%
Cap/Sales 7.97%
Interest Coverage 35.44
Cash Conversion 89.37%
Profit Quality 81.42%
Current Ratio 2.61
Quick Ratio 1.9
Altman-Z 15.66
F-Score6
WACC11.12%
ROIC/WACC2.19
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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year2.77%
Revenue Next 2Y9.21%
Revenue Next 3Y8.41%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.51%
EBIT Next 3Y10.35%
EBIT Next 5Y10.57%
FCF growth 1Y-23.89%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-8.29%
OCF growth 3Y13.81%
OCF growth 5Y15.91%

APPLIED MATERIALS INC / 1AMAT.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for APPLIED MATERIALS INC?

ChartMill assigns a fundamental rating of 6 / 10 to 1AMAT.MI.


Can you provide the valuation status for APPLIED MATERIALS INC?

ChartMill assigns a valuation rating of 2 / 10 to APPLIED MATERIALS INC (1AMAT.MI). This can be considered as Overvalued.


Can you provide the profitability details for APPLIED MATERIALS INC?

APPLIED MATERIALS INC (1AMAT.MI) has a profitability rating of 8 / 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 37.02 and the Price/Book (PB) ratio is 13.56.


What is the earnings growth outlook for APPLIED MATERIALS INC?

The Earnings per Share (EPS) of APPLIED MATERIALS INC (1AMAT.MI) is expected to grow by 4.21% in the next year.