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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

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!


Dividend Valuation Growth Profitability Health

8

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.
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

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 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.
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 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

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.
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 11.75 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 RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.08
Altman-Z 11.75
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 Quick ratio of 1.79. This is in the better half of the industry: 1AMAT outperforms 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

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.
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

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 RankSector Rank
PE 24.03
Fwd PE 23.56
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

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 RankSector Rank
P/FCF 31.46
EV/EBITDA 19.88
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 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%

4

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 RankSector 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%
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
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 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 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%
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 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 11.75
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%