APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - BIT:1AMAT - US0382221051 - Common Stock
197.3 EUR
+3.32 (+1.71%)
We assign a fundamental rating of 7 out of 10 to 1AMAT. 1AMAT was compared to 59 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 has a decent growth rate and is not valued too expensively. These ratings could make 1AMAT a good candidate 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.
Each year in the past 5 years 1AMAT has 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 83.05% of the companies in the same industry.
The Return On Equity of 1AMAT (35.03%) is better than 79.66% of its industry peers.
The Return On Invested Capital of 1AMAT (28.12%) is better than 88.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AMAT is significantly above the industry average of 15.39%.
| 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 71.19% of its industry peers.
In the last couple of years the Profit Margin of 1AMAT has grown nicely.
With a decent Operating Margin value of 30.14%, 1AMAT is doing good in the industry, outperforming 72.88% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AMAT has grown nicely.
The Gross Margin of 1AMAT (48.50%) is comparable to the rest of the industry.
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-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
The number of shares outstanding for 1AMAT has been reduced compared to 5 years ago.
The debt/assets ratio for 1AMAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.72 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.72, 1AMAT belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
1AMAT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.08, 1AMAT is in the better half of the industry, outperforming 72.88% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, 1AMAT is not doing good in the industry: 61.02% of the companies in the same industry are doing better.
Although 1AMAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.72 |
ROIC/WACC2.44
WACC11.51%
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.
The Current ratio of 1AMAT (2.50) is better than 64.41% of its industry peers.
A Quick Ratio of 1.79 indicates that 1AMAT should not have too much problems paying its short term obligations.
1AMAT has a better Quick ratio (1.79) than 61.02% 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 13.12% over the past year.
Measured over the past years, 1AMAT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.21% on average per year.
Looking at the last year, 1AMAT shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
The Revenue has been growing by 13.22% on average over the past years. This is quite good.
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 10.71% yearly.
Based on estimates for the next years, 1AMAT will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
EPS Next Y10.13%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
EPS Next 5Y10.71%
Revenue Next Year4.39%
Revenue Next 2Y3.78%
Revenue Next 3Y5.5%
Revenue Next 5Y7.44%
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
With a Price/Earnings ratio of 23.92, 1AMAT is valued on the expensive side.
Based on the Price/Earnings ratio, 1AMAT is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1AMAT to the average of the S&P500 Index (27.77), we can say 1AMAT is valued inline with the index average.
The Price/Forward Earnings ratio is 23.47, which indicates a rather expensive current valuation of 1AMAT.
1AMAT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1AMAT to the average of the S&P500 Index (23.23), we can say 1AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AMAT.
1AMAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AMAT is cheaper than 74.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.33 | ||
| EV/EBITDA | 19.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1AMAT may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.03
EPS Next 2Y6.15%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, 1AMAT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.10, 1AMAT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.81, 1AMAT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
19.73% 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.
DP19.73%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
BIT:1AMAT (10/20/2025, 7:00:00 PM)
197.3
+3.32 (+1.71%)
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 Cap157.18B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.56
Price Target169.65 (-14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.24
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)-1.14%
PT rev (3m)-2.25%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-8.81%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 23.47 | ||
| P/S | 6.38 | ||
| P/FCF | 31.33 | ||
| P/OCF | 23.68 | ||
| P/B | 9.35 | ||
| P/tB | 11.76 | ||
| EV/EBITDA | 19.8 |
EPS(TTM)8.25
EY4.18%
EPS(NY)8.41
Fwd EY4.26%
FCF(TTM)6.3
FCFY3.19%
OCF(TTM)8.33
OCFY4.22%
SpS30.94
BVpS21.09
TBVpS16.78
PEG (NY)2.36
PEG (5Y)1.03
Graham Number62.57
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%
ROICexgc growth 3Y-7.9%
ROICexgc 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 | 11.72 |
F-Score7
WACC11.51%
ROIC/WACC2.44
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 Y10.13%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
EPS Next 5Y10.71%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.39%
Revenue Next 2Y3.78%
Revenue Next 3Y5.5%
Revenue Next 5Y7.44%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y7.47%
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%