329.07 USD
-1.5 (-0.45%)
At close: Feb 10, 2026
337.7 USD
+8.63 (+2.62%)
Pre-Market: 2/11/2026, 9:26:07 AM
Overall AMAT gets a fundamental rating of 7 out of 10. We evaluated AMAT against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AMAT has a correct valuation and a medium growth rate. This makes AMAT very considerable for quality investing!
1. Profitability
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.
- AMAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AMAT has a better Return On Assets (19.28%) than 93.81% of its industry peers.
- With an excellent Return On Equity value of 34.28%, AMAT belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
- AMAT has a Return On Invested Capital of 24.38%. This is amongst the best in the industry. AMAT outperforms 95.58% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMAT is significantly above the industry average of 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROIC | 24.38% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
1.3 Margins
- Looking at the Profit Margin, with a value of 24.67%, AMAT belongs to the top of the industry, outperforming 82.30% of the companies in the same industry.
- AMAT's Profit Margin has improved in the last couple of years.
- AMAT has a better Operating Margin (29.86%) than 90.27% of its industry peers.
- AMAT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 48.67%, AMAT perfoms like the industry average, outperforming 59.29% of the companies in the same industry.
- In the last couple of years the Gross Margin of AMAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% |
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%
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.
- The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
- The number of shares outstanding for AMAT has been reduced compared to 5 years ago.
- The debt/assets ratio for AMAT has been reduced compared to a year ago.
2.2 Solvency
- AMAT has an Altman-Z score of 14.01. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 14.01, AMAT is doing good in the industry, outperforming 79.65% of the companies in the same industry.
- AMAT has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.15, AMAT is in the better half of the industry, outperforming 71.68% of the companies in the same industry.
- 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 Debt to Equity ratio of 0.32. This is in the lower half of the industry: AMAT underperforms 62.83% 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 | 1.15 | ||
| Altman-Z | 14.01 |
ROIC/WACC2.22
WACC10.98%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
- AMAT has a Current ratio of 2.61. This is comparable to the rest of the industry: AMAT outperforms 44.25% of its industry peers.
- A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
- The Quick ratio of AMAT (1.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
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.
- AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
- 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)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
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 11.04% on average per year.
- The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue Next Year2.77%
Revenue Next 2Y9.21%
Revenue Next 3Y8.41%
Revenue Next 5Y6.57%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.93 indicates a quite expensive valuation of AMAT.
- Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than the industry average as 78.76% of the companies are valued more expensively.
- AMAT is valuated rather expensively when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 33.52, AMAT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 65.49% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (27.97), we can say AMAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
- AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 69.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than 72.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.01 | ||
| EV/EBITDA | 29.05 |
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.
- AMAT has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AMAT's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)8.3
PEG (5Y)1.98
EPS Next 2Y14.15%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.61%, AMAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.51, AMAT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.61, AMAT pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
- The dividend of AMAT is nicely growing with an annual growth rate of 14.79%!
- 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)14.79%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
- 19.78% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
- AMAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.78%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
329.07
-1.5 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-13 2025-11-13/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners85.06%
Inst Owner Change-2.86%
Ins Owners0.27%
Ins Owner Change1.44%
Market Cap262.15B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78.5
Price Target329.63 (0.17%)
Short Float %2.03%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19 2026-02-19 (0.46)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.63%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.02%
Min EPS beat(4)1.29%
Max EPS beat(4)3.04%
EPS beat(8)8
Avg EPS beat(8)3.4%
EPS beat(12)12
Avg EPS beat(12)3.99%
EPS beat(16)14
Avg EPS beat(16)4.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)23.77%
PT rev (3m)49.27%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)3.3%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 33.52 | ||
| P/S | 9.24 | ||
| P/FCF | 46.01 | ||
| P/OCF | 32.94 | ||
| P/B | 12.84 | ||
| P/tB | 15.91 | ||
| EV/EBITDA | 29.05 |
EPS(TTM)9.42
EY2.86%
EPS(NY)9.82
Fwd EY2.98%
FCF(TTM)7.15
FCFY2.17%
OCF(TTM)9.99
OCFY3.04%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)8.3
PEG (5Y)1.98
Graham Number73.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROCE | 29.93% | ||
| ROIC | 24.38% | ||
| ROICexc | 34.93% | ||
| ROICexgc | 43.57% | ||
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% | ||
| FCFM | 20.09% |
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-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 519.54% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | 35.44 | ||
| Cash Conversion | 89.37% | ||
| Profit Quality | 81.42% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 14.01 |
F-Score6
WACC10.98%
ROIC/WACC2.22
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)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y4.21%
EPS Next 2Y14.15%
EPS Next 3Y12.65%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.77%
Revenue Next 2Y9.21%
Revenue Next 3Y8.41%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.51%
EBIT Next 3Y10.35%
EBIT Next 5Y10.57%
FCF growth 1Y-23.89%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-8.29%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / AMAT 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 34.93 and the Price/Book (PB) ratio is 12.84.
Is the dividend of APPLIED MATERIALS INC sustainable?
The dividend rating of APPLIED MATERIALS INC (AMAT) is 5 / 10 and the dividend payout ratio is 19.78%.