APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - BIT:1AMAT - US0382221051 - Common Stock
142.78 EUR
+2.8 (+2%)
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 57 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making 1AMAT a very profitable company, without any liquidiy or solvency issues. 1AMAT has a decent growth rate and is not valued too expensively. 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.
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 19.97%. This is amongst the best in the industry. 1AMAT outperforms 89.47% of its industry peers.
1AMAT has a Return On Equity of 35.03%. This is amongst the best in the industry. 1AMAT outperforms 84.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.12%, 1AMAT belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
1AMAT had an Average Return On Invested Capital over the past 3 years of 30.16%. This is significantly above the industry average of 14.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 28.12% |
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 23.88% is fine compared to the rest of the industry. 1AMAT outperforms 71.93% of its industry peers.
1AMAT's Profit Margin has improved in the last couple of years.
The Operating Margin of 1AMAT (30.14%) is better than 77.19% of its industry peers.
1AMAT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 48.50%, 1AMAT perfoms like the industry average, outperforming 59.65% of the companies in the same industry.
1AMAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
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.
1AMAT has less shares outstanding than it did 1 year ago.
1AMAT has less shares outstanding than it did 5 years ago.
1AMAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.73 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 9.73, 1AMAT is doing good in the industry, outperforming 73.68% of the companies in the same industry.
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.
The Debt to FCF ratio of 1AMAT (1.08) is better than 71.93% of its industry peers.
1AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 1AMAT (0.32) is worse than 64.91% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1AMAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 9.73 |
ROIC/WACC2.47
WACC11.37%
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 the better half of the industry, outperforming 61.40% 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 comparable to the rest of the industry: 1AMAT outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
1AMAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.12%, which is quite good.
1AMAT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
1AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.55%.
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)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
3.2 Future
1AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.36% yearly.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue Next Year4.41%
Revenue Next 2Y3.63%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
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.
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
1AMAT is valuated rather expensively with a Price/Earnings ratio of 17.52.
Based on the Price/Earnings ratio, 1AMAT is valued cheaper than 80.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. 1AMAT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.12, 1AMAT is valued on the expensive side.
68.42% of the companies in the same industry are more expensive than 1AMAT, based on the Price/Forward Earnings ratio.
1AMAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 17.12 |
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 cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.92 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)0.75
EPS Next 2Y6.31%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, 1AMAT is not a good candidate for dividend investing.
In the last 3 months the price of 1AMAT has falen by -38.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.24, 1AMAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.97, 1AMAT pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
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 2Y6.31%
EPS Next 3Y8.38%
BIT:1AMAT (9/12/2025, 7:00:00 PM)
142.78
+2.8 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap113.74B
Analysts77.07
Price Target166.74 (16.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend1.23
Dividend Growth(5Y)12.01%
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)-3.93%
PT rev (3m)-5.21%
EPS NQ rev (1m)-10.89%
EPS NQ rev (3m)-10.4%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)-8.47%
Revenue NQ rev (3m)-8.24%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 17.12 | ||
| P/S | 4.67 | ||
| P/FCF | 22.92 | ||
| P/OCF | 17.33 | ||
| P/B | 6.84 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 14.39 |
EPS(TTM)8.15
EY5.71%
EPS(NY)8.34
Fwd EY5.84%
FCF(TTM)6.23
FCFY4.36%
OCF(TTM)8.24
OCFY5.77%
SpS30.6
BVpS20.86
TBVpS16.6
PEG (NY)1.7
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 28.12% | ||
| ROICexc | 37.92% | ||
| ROICexgc | 47.29% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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 | 0.32 | ||
| 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 | 9.73 |
F-Score7
WACC11.37%
ROIC/WACC2.47
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)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.41%
Revenue Next 2Y3.63%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year16.07%
EBIT Next 3Y9.91%
EBIT Next 5Y5.84%
FCF growth 1Y-16.6%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-3.71%
OCF growth 3Y16.83%
OCF growth 5Y21.72%