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APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis

Europe - BIT:1AMAT - US0382221051 - Common Stock

197.3 EUR
+3.32 (+1.71%)
Last: 10/20/2025, 7:00:00 PM
Fundamental Rating

7

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.


Dividend Valuation Growth Profitability Health

8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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 RankSector 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%
1AMAT.MI Yearly ROA, ROE, ROIC1AMAT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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 RankSector 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%
1AMAT.MI Yearly Profit, Operating, Gross Margins1AMAT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

8

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.
1AMAT.MI Yearly Shares Outstanding1AMAT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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 RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.08
Altman-Z 11.72
ROIC/WACC2.44
WACC11.51%
1AMAT.MI Yearly LT Debt VS Equity VS FCF1AMAT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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 RankSector Rank
Current Ratio 2.5
Quick Ratio 1.79
1AMAT.MI Yearly Current Assets VS Current Liabilites1AMAT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

5

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.
1AMAT.MI Yearly Revenue VS Estimates1AMAT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
1AMAT.MI Yearly EPS VS Estimates1AMAT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

4

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 RankSector Rank
PE 23.92
Fwd PE 23.47
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

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 RankSector Rank
P/FCF 31.33
EV/EBITDA 19.8
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 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%

4

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 RankSector 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%
1AMAT.MI Yearly Income VS Free CF VS Dividend1AMAT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
1AMAT.MI Dividend Payout.1AMAT.MI Dividend Payout, showing the Payout Ratio.1AMAT.MI Dividend Payout.PayoutRetained Earnings

APPLIED MATERIALS INC

BIT:1AMAT (10/20/2025, 7:00:00 PM)

197.3

+3.32 (+1.71%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)08-14 2025-08-14/amc
Earnings (Next)11-13 2025-11-13/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%