APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis
USA - NASDAQ:AMAT - US0382221051 - Common Stock
224.63 USD
+1.4 (+0.63%)
Taking everything into account, AMAT scores 6 out of 10 in our fundamental rating. AMAT was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AMAT a very profitable company, without any liquidiy or solvency issues. AMAT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AMAT had positive earnings in the past year.
In the past year AMAT had a positive cash flow from operations.
Of the past 5 years AMAT 4 years were profitable.
Of the past 5 years AMAT 4 years had a positive operating cash flow.
1.2 Ratios
AMAT has a Return On Assets of 19.97%. This is amongst the best in the industry. AMAT outperforms 91.96% of its industry peers.
Looking at the Return On Equity, with a value of 35.03%, AMAT belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
With an excellent Return On Invested Capital value of 28.12%, AMAT belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.93%.
| 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
Looking at the Profit Margin, with a value of 23.88%, AMAT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of AMAT has grown nicely.
AMAT has a better Operating Margin (30.14%) than 91.07% of its industry peers.
AMAT's Operating Margin has improved in the last couple of years.
The Gross Margin of AMAT (48.50%) is comparable to the rest of the industry.
AMAT's Gross Margin has improved in the last couple of years.
| 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
AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for AMAT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AMAT has an Altman-Z score of 11.54. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
AMAT has a Altman-Z score of 11.54. This is in the better half of the industry: AMAT outperforms 78.57% of its industry peers.
The Debt to FCF ratio of AMAT is 1.08, which is an excellent value as it means it would take AMAT, only 1.08 years of fcf income to pay off all of its debts.
AMAT has a Debt to FCF ratio of 1.08. This is in the better half of the industry: AMAT outperforms 75.89% of its industry peers.
AMAT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
AMAT has a worse Debt to Equity ratio (0.32) than 62.50% of its industry peers.
Even though the debt/equity ratio score it not favorable for AMAT, 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 | 11.54 |
ROIC/WACC2.64
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AMAT has no problem at all paying its short term obligations.
AMAT has a Current ratio of 2.50. This is comparable to the rest of the industry: AMAT outperforms 42.86% of its industry peers.
A Quick Ratio of 1.79 indicates that AMAT should not have too much problems paying its short term obligations.
AMAT's Quick ratio of 1.79 is in line compared to the rest of the industry. AMAT outperforms 41.07% 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 8.78% over the past year.
AMAT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.48%
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 10.60% on average per year.
Based on estimates for the next years, AMAT will show a small growth in Revenue. The Revenue will grow by 7.78% on average per year.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AMAT is valuated rather expensively with a Price/Earnings ratio of 23.85.
Based on the Price/Earnings ratio, AMAT is valued cheaper than 82.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, AMAT is valued at the same level.
A Price/Forward Earnings ratio of 23.27 indicates a rather expensive valuation of AMAT.
70.54% of the companies in the same industry are more expensive than AMAT, based on the Price/Forward Earnings ratio.
AMAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 23.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 79.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.73 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMAT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AMAT may justify a higher PE ratio.
PEG (NY)9.62
PEG (5Y)1.35
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
AMAT has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 2.16, AMAT pays a better dividend. On top of this AMAT pays more dividend than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of AMAT grows each year by 12.01%, which is quite nice.
AMAT has paid a dividend for at least 10 years, which is a reliable track record.
AMAT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.01%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
AMAT pays out 19.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of AMAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
NASDAQ:AMAT (11/14/2025, 3:48:07 PM)
224.63
+1.4 (+0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change-1.36%
Ins Owners0.26%
Ins Owner Change-0.02%
Market Cap178.95B
Revenue(TTM)N/A
Net Income(TTM)6.83B
Analysts77.07
Price Target220.82 (-1.7%)
Short Float %2.33%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend1.44
Dividend Growth(5Y)12.01%
DP19.73%
Div Incr Years7
Div Non Decr Years19
Ex-Date
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)10.07%
PT rev (3m)6.32%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 23.27 | ||
| P/S | 6.25 | ||
| P/FCF | 30.73 | ||
| P/OCF | 23.23 | ||
| P/B | 9.18 | ||
| P/tB | 11.53 | ||
| EV/EBITDA | 19.29 |
EPS(TTM)9.42
EY4.19%
EPS(NY)9.65
Fwd EY4.3%
FCF(TTM)7.31
FCFY3.25%
OCF(TTM)9.67
OCFY4.31%
SpS35.92
BVpS24.48
TBVpS19.48
PEG (NY)9.62
PEG (5Y)1.35
Graham Number72.04
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%
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 | 11.54 |
F-Score7
WACC10.66%
ROIC/WACC2.64
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)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y6.9%
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%
APPLIED MATERIALS INC / AMAT FAQ
What is the fundamental rating for AMAT stock?
ChartMill assigns a fundamental rating of 7 / 10 to AMAT.
What is the valuation status of APPLIED MATERIALS INC (AMAT) stock?
ChartMill assigns a valuation rating of 5 / 10 to APPLIED MATERIALS INC (AMAT). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLIED MATERIALS INC?
APPLIED MATERIALS INC (AMAT) has a profitability rating of 9 / 10.
What is the financial health of APPLIED MATERIALS INC (AMAT) stock?
The financial health rating of APPLIED MATERIALS INC (AMAT) is 7 / 10.
How sustainable is the dividend of APPLIED MATERIALS INC (AMAT) stock?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 6 / 10 and the dividend payout ratio is 19.73%.