APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
BIT:1AMAT - Euronext Milan - US0382221051 - Common Stock - Currency: EUR
Taking everything into account, 1AMAT scores 6 out of 10 in our fundamental rating. 1AMAT was compared to 54 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1AMAT is not valued too expensively and it also shows a decent growth rate. This makes 1AMAT very considerable 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.
1AMAT had positive earnings in each of the past 5 years.
In the past 5 years 1AMAT always reported a positive cash flow from operatings.
1.2 Ratios
1AMAT has a Return On Assets of 20.09%. This is amongst the best in the industry. 1AMAT outperforms 88.89% of its industry peers.
1AMAT's Return On Equity of 35.64% is fine compared to the rest of the industry. 1AMAT outperforms 77.78% of its industry peers.
1AMAT's Return On Invested Capital of 27.88% is amongst the best of the industry. 1AMAT outperforms 90.74% of its industry peers.
1AMAT had an Average Return On Invested Capital over the past 3 years of 30.16%. This is significantly above the industry average of 16.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROIC | 27.88% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
1.3 Margins
1AMAT's Profit Margin of 24.06% is fine compared to the rest of the industry. 1AMAT outperforms 70.37% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
1AMAT has a better Operating Margin (29.66%) than 68.52% of its industry peers.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
1AMAT has a Gross Margin (48.14%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% |
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
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
1AMAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
2.2 Solvency
1AMAT has an Altman-Z score of 10.68. This indicates that 1AMAT is financially healthy and has little risk of bankruptcy at the moment.
1AMAT has a better Altman-Z score (10.68) than 83.33% of its industry peers.
1AMAT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.07, 1AMAT is doing good in the industry, outperforming 79.63% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that 1AMAT is not too dependend on debt financing.
The Debt to Equity ratio of 1AMAT (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 10.68 |
ROIC/WACC2.42
WACC11.53%
2.3 Liquidity
A Current Ratio of 2.46 indicates that 1AMAT has no problem at all paying its short term obligations.
The Current ratio of 1AMAT (2.46) is comparable to the rest of the industry.
1AMAT has a Quick Ratio of 1.76. This is a normal value and indicates that 1AMAT is financially healthy and should not expect problems in meeting its short term obligations.
1AMAT has a Quick ratio (1.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.77% over the past year.
1AMAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
The Revenue has been growing slightly by 5.99% in the past year.
Measured over the past years, 1AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 13.22% on average per year.
EPS 1Y (TTM)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
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 10.33% on average per year.
1AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.18% yearly.
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.29 indicates a rather expensive valuation of 1AMAT.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
1AMAT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.05 indicates a rather expensive valuation of 1AMAT.
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 36.44, 1AMAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA is on the same level as the industry average.
1AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 79.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.83 | ||
| EV/EBITDA | 17.77 |
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.
PEG (NY)1.84
PEG (5Y)0.92
EPS Next 2Y8.99%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
1AMAT has a yearly dividend return of 0.96%, which is pretty low.
In the last 3 months the price of 1AMAT has falen by -23.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to an average S&P500 Dividend Yield of 2.34, 1AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of 1AMAT is nicely growing with an annual growth rate of 12.01%!
Dividend Growth(5Y)12.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.40% of the earnings are spent on dividend by 1AMAT. This is a low number and sustainable payout ratio.
The dividend of 1AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.4%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
BIT:1AMAT (7/11/2025, 7:00:00 PM)
169.24
+6.78 (+4.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap135.82B
Analysts80
Price Target173.56 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.24
Dividend Growth(5Y)12.01%
DP19.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.7%
Min EPS beat(2)1.29%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)2.49%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.2%
EPS beat(12)12
Avg EPS beat(12)5.37%
EPS beat(16)13
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)-2.6%
PT rev (3m)-13.46%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 19.05 | ||
| P/S | 5.6 | ||
| P/FCF | 26.83 | ||
| P/OCF | 21.09 | ||
| P/B | 8.29 | ||
| P/tB | 10.51 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)7.95
EY4.7%
EPS(NY)8.88
Fwd EY5.25%
FCF(TTM)6.31
FCFY3.73%
OCF(TTM)8.02
OCFY4.74%
SpS30.23
BVpS20.41
TBVpS16.1
PEG (NY)1.84
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROCE | 32.5% | ||
| ROIC | 27.88% | ||
| ROICexc | 37.43% | ||
| ROICexgc | 46.97% | ||
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% | ||
| FCFM | 20.87% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)30.16%
ROIC(5y)28.95%
ROICexc(3y)39.77%
ROICexc(5y)39.3%
ROICexgc(3y)51.88%
ROICexgc(5y)52.37%
ROCE(3y)34.44%
ROCE(5y)32.94%
ROICexcg growth 3Y-7.9%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y-6.23%
ROICexc growth 5Y6.64%
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 386.2% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 37.36 | ||
| Cash Conversion | 85.26% | ||
| Profit Quality | 86.73% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 10.68 |
F-Score7
WACC11.53%
ROIC/WACC2.42
Cap/Depr(3y)231.86%
Cap/Depr(5y)195.47%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.39%
Profit Quality(3y)95.26%
Profit Quality(5y)92.06%
High Growth Momentum
Growth
EPS 1Y (TTM)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
EBIT growth 1Y8.89%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.87%
EBIT Next 3Y9.95%
EBIT Next 5Y6.82%
FCF growth 1Y-0.88%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y8.25%
OCF growth 3Y16.83%
OCF growth 5Y21.72%