APPLIED MATERIALS INC (1AMAT.MI) Stock Fundamental Analysis
Europe - BIT:1AMAT - US0382221051 - Common Stock
197.3 EUR
+3.32 (+1.71%)
Taking everything into account, 1AMAT scores 7 out of 10 in our fundamental rating. 1AMAT was compared to 59 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
1AMAT had a positive operating cash flow in the past year.
In the past 5 years 1AMAT has always been profitable.
Each year in the past 5 years 1AMAT had a positive operating cash flow.
1.2 Ratios
1AMAT has a Return On Assets of 19.97%. This is amongst the best in the industry. 1AMAT outperforms 83.05% of its industry peers.
Looking at the Return On Equity, with a value of 35.03%, 1AMAT is in the better half of the industry, outperforming 79.66% of the companies in the same industry.
1AMAT has a Return On Invested Capital of 28.12%. This is amongst the best in the industry. 1AMAT outperforms 88.14% 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 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.
1AMAT has a better Operating Margin (30.14%) than 72.88% of its industry peers.
1AMAT's Operating Margin has improved in the last couple of years.
1AMAT has a Gross Margin (48.50%) which 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1AMAT 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 11.75 indicates that 1AMAT is not in any danger for bankruptcy at the moment.
1AMAT has a better Altman-Z score (11.75) than 79.66% of its industry peers.
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.
1AMAT has a Debt to FCF ratio of 1.08. This is in the better half of the industry: 1AMAT outperforms 72.88% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that 1AMAT is not too dependend on debt financing.
1AMAT has a Debt to Equity ratio of 0.32. This is in the lower half of the industry: 1AMAT underperforms 61.02% 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 | 11.75 |
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 Quick ratio of 1.79. This is in the better half of the industry: 1AMAT outperforms 61.02% 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.
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.
1AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.22% yearly.
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.
1AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.44% yearly.
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
The Price/Earnings ratio is 24.03, which indicates a rather expensive current valuation of 1AMAT.
Compared to the rest of the industry, the Price/Earnings ratio of 1AMAT indicates a somewhat cheap valuation: 1AMAT is cheaper than 69.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, 1AMAT is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.56, the valuation of 1AMAT can be described as rather expensive.
1AMAT's Price/Forward Earnings is on the same level as the industry average.
1AMAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 23.56 |
4.2 Price Multiples
1AMAT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMAT indicates a somewhat cheap valuation: 1AMAT is cheaper than 74.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.46 | ||
| EV/EBITDA | 19.88 |
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)2.37
PEG (5Y)1.04
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.
1AMAT's Dividend Yield is a higher than the industry average which is at 1.10.
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 | 0.81% |
5.2 History
On average, the dividend of 1AMAT grows each year by 12.01%, which is quite nice.
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 2Y6.15%
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
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 | 24.03 | ||
| Fwd PE | 23.56 | ||
| P/S | 6.4 | ||
| P/FCF | 31.46 | ||
| P/OCF | 23.78 | ||
| P/B | 9.39 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 19.88 |
EPS(TTM)8.21
EY4.16%
EPS(NY)8.37
Fwd EY4.24%
FCF(TTM)6.27
FCFY3.18%
OCF(TTM)8.3
OCFY4.21%
SpS30.82
BVpS21.01
TBVpS16.71
PEG (NY)2.37
PEG (5Y)1.04
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 | 11.75 |
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%