APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation

NASDAQ:AMAT • US0382221051

Current stock price

341.53 USD
+4.26 (+1.26%)
At close:
348.75 USD
+7.22 (+2.11%)
Pre-Market:

This AMAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. AMAT Profitability Analysis

1.1 Basic Checks

  • AMAT had positive earnings in the past year.
  • AMAT had a positive operating cash flow in the past year.
  • AMAT had positive earnings in each of the past 5 years.
  • Each year in the past 5 years AMAT had a positive operating cash flow.
AMAT Yearly Net Income VS EBIT VS OCF VS FCFAMAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

1.2 Ratios

  • With an excellent Return On Assets value of 20.82%, AMAT belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
  • With an excellent Return On Equity value of 36.10%, AMAT belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
  • AMAT's Return On Invested Capital of 22.88% is amongst the best of the industry. AMAT outperforms 95.65% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.52%.
Industry RankSector Rank
ROA 20.82%
ROE 36.1%
ROIC 22.88%
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
AMAT Yearly ROA, ROE, ROICAMAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • Looking at the Profit Margin, with a value of 27.78%, AMAT belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
  • AMAT's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 29.74%, AMAT belongs to the best of the industry, outperforming 88.70% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AMAT has grown nicely.
  • AMAT's Gross Margin of 48.72% is in line compared to the rest of the industry. AMAT outperforms 60.00% of its industry peers.
  • In the last couple of years the Gross Margin of AMAT has grown nicely.
Industry RankSector Rank
OM 29.74%
PM (TTM) 27.78%
GM 48.72%
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
AMAT Yearly Profit, Operating, Gross MarginsAMAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

2. AMAT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AMAT is creating value.
  • The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
  • AMAT has less shares outstanding than it did 5 years ago.
  • AMAT has a better debt/assets ratio than last year.
AMAT Yearly Shares OutstandingAMAT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
AMAT Yearly Total Debt VS Total AssetsAMAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • AMAT has an Altman-Z score of 14.24. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 14.24, AMAT is doing good in the industry, outperforming 79.13% of the companies in the same industry.
  • The Debt to FCF ratio of AMAT is 1.06, which is an excellent value as it means it would take AMAT, only 1.06 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.06, AMAT is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • A Debt/Equity ratio of 0.30 indicates that AMAT is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.30, AMAT is doing worse than 61.74% of the companies in the same industry.
  • Although AMAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 0.3
Debt/FCF 1.06
Altman-Z 14.24
ROIC/WACC2.01
WACC11.39%
AMAT Yearly LT Debt VS Equity VS FCFAMAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • AMAT has a Current Ratio of 2.71. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
  • AMAT has a Current ratio of 2.71. This is comparable to the rest of the industry: AMAT outperforms 47.83% of its industry peers.
  • AMAT has a Quick Ratio of 1.98. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting its short term obligations.
  • AMAT has a Quick ratio (1.98) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.71
Quick Ratio 1.98
AMAT Yearly Current Assets VS Current LiabilitesAMAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. AMAT Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.72% over the past year.
  • Measured over the past years, AMAT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
  • The Revenue has been growing slightly by 2.10% in the past year.
  • AMAT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.52% yearly.
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%

3.2 Future

  • Based on estimates for the next years, AMAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.88% on average per year.
  • AMAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.66% yearly.
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue Next Year11.28%
Revenue Next 2Y15.4%
Revenue Next 3Y12.99%
Revenue Next 5Y12.66%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
AMAT Yearly Revenue VS EstimatesAMAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
AMAT Yearly EPS VS EstimatesAMAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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4

4. AMAT Valuation Analysis

4.1 Price/Earnings Ratio

  • AMAT is valuated quite expensively with a Price/Earnings ratio of 36.26.
  • 77.39% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.71. AMAT is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 23.95, which indicates a rather expensive current valuation of AMAT.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 73.04% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (23.83), we can say AMAT is valued inline with the index average.
Industry RankSector Rank
PE 36.26
Fwd PE 23.95
AMAT Price Earnings VS Forward Price EarningsAMAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 68.70% of the companies in the same industry are more expensive than AMAT, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than 72.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.76
EV/EBITDA 30.25
AMAT Per share dataAMAT 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 AMAT may justify a higher PE ratio.
  • AMAT's earnings are expected to grow with 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)2.05
EPS Next 2Y23.04%
EPS Next 3Y16.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AMAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.55%, AMAT is not a good candidate for dividend investing.
  • AMAT's Dividend Yield is a higher than the industry average which is at 0.49.
  • Compared to an average S&P500 Dividend Yield of 1.91, AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.55%

5.2 History

  • The dividend of AMAT is nicely growing with an annual growth rate of 14.79%!
  • AMAT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AMAT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.79%
Div Incr Years7
Div Non Decr Years19
AMAT Yearly Dividends per shareAMAT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 18.15% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
  • AMAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.15%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
AMAT Yearly Income VS Free CF VS DividendAMAT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
AMAT Dividend Payout.AMAT Dividend Payout, showing the Payout Ratio.AMAT Dividend Payout.PayoutRetained Earnings

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AMAT Fundamentals: All Metrics, Ratios and Statistics

APPLIED MATERIALS INC

NASDAQ:AMAT (3/13/2026, 8:09:38 PM)

Premarket: 348.75 +7.22 (+2.11%)

341.53

+4.26 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-14
Inst Owners85.14%
Inst Owner Change1.15%
Ins Owners0.31%
Ins Owner Change1.49%
Market Cap271.04B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target414.06 (21.24%)
Short Float %1.71%
Short Ratio1.71
Dividend
Industry RankSector Rank
Dividend Yield 0.55%
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP18.15%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.63%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)2.95%
Min EPS beat(4)1.29%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)2.94%
EPS beat(12)12
Avg EPS beat(12)4.23%
EPS beat(16)15
Avg EPS beat(16)4.4%
Revenue beat(2)2
Avg Revenue beat(2)0.04%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)-0.01%
PT rev (1m)25.62%
PT rev (3m)62.6%
EPS NQ rev (1m)17.31%
EPS NQ rev (3m)18.31%
EPS NY rev (1m)14.23%
EPS NY rev (3m)15.83%
Revenue NQ rev (1m)10.18%
Revenue NQ rev (3m)10.49%
Revenue NY rev (1m)8.29%
Revenue NY rev (3m)9.01%
Valuation
Industry RankSector Rank
PE 36.26
Fwd PE 23.95
P/S 9.61
P/FCF 43.76
P/OCF 31.09
P/B 12.48
P/tB 15.23
EV/EBITDA 30.25
EPS(TTM)9.42
EY2.76%
EPS(NY)14.26
Fwd EY4.18%
FCF(TTM)7.8
FCFY2.29%
OCF(TTM)10.99
OCFY3.22%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)1.91
PEG (5Y)2.05
Graham Number76.16
Profitability
Industry RankSector Rank
ROA 20.82%
ROE 36.1%
ROCE 28.07%
ROIC 22.88%
ROICexc 31.94%
ROICexgc 39.07%
OM 29.74%
PM (TTM) 27.78%
GM 48.72%
FCFM 21.95%
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
ROICexc(3y)36.63%
ROICexc(5y)37.97%
ROICexgc(3y)47.26%
ROICexgc(5y)49.64%
ROCE(3y)31.01%
ROCE(5y)34.04%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y3.53%
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
F-Score7
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 1.06
Debt/EBITDA 0.74
Cap/Depr 552.52%
Cap/Sales 8.95%
Interest Coverage 33.3
Cash Conversion 98.54%
Profit Quality 79.02%
Current Ratio 2.71
Quick Ratio 1.98
Altman-Z 14.24
F-Score7
WACC11.39%
ROIC/WACC2.01
Cap/Depr(3y)345.96%
Cap/Depr(5y)276.93%
Cap/Sales(3y)5.51%
Cap/Sales(5y)4.49%
Profit Quality(3y)98.84%
Profit Quality(5y)89.65%
High Growth Momentum
Growth
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year11.28%
Revenue Next 2Y15.4%
Revenue Next 3Y12.99%
Revenue Next 5Y12.66%
EBIT growth 1Y3.91%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year17.79%
EBIT Next 3Y19.39%
EBIT Next 5Y17.82%
FCF growth 1Y-19.63%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-0.41%
OCF growth 3Y13.81%
OCF growth 5Y15.91%

APPLIED MATERIALS INC / AMAT Fundamental Analysis FAQ

What is the fundamental rating for AMAT stock?

ChartMill assigns a fundamental rating of 7 / 10 to AMAT.


Can you provide the valuation status for APPLIED MATERIALS INC?

ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (AMAT). This can be considered as Fairly Valued.


How profitable is APPLIED MATERIALS INC (AMAT) stock?

APPLIED MATERIALS INC (AMAT) has a profitability rating of 9 / 10.


What is the valuation of APPLIED MATERIALS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for APPLIED MATERIALS INC (AMAT) is 36.26 and the Price/Book (PB) ratio is 12.48.


Is the dividend of APPLIED MATERIALS INC sustainable?

The dividend rating of APPLIED MATERIALS INC (AMAT) is 6 / 10 and the dividend payout ratio is 18.15%.