304.87 USD
-2.37 (-0.77%)
304.544 USD
-0.33 (-0.11%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. AMAT is not valued too expensively and it also shows a decent growth rate. These ratings would make AMAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year AMAT was profitable.
- AMAT had a positive operating cash flow in the past year.
- AMAT had positive earnings in each of the past 5 years.
- In the past 5 years AMAT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AMAT (19.28%) is better than 92.92% of its industry peers.
- AMAT has a Return On Equity of 34.28%. This is amongst the best in the industry. AMAT outperforms 93.81% of its industry peers.
- The Return On Invested Capital of AMAT (24.38%) is better than 95.58% of its industry peers.
- AMAT had an Average Return On Invested Capital over the past 3 years of 25.04%. This 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
- With an excellent Profit Margin value of 24.67%, AMAT belongs to the best 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's Operating Margin of 29.86% is amongst the best of the industry. AMAT outperforms 90.27% of its industry peers.
- In the last couple of years the Operating Margin of AMAT has grown nicely.
- With a Gross Margin value of 48.67%, AMAT perfoms like the industry average, outperforming 59.29% of the companies in the same industry.
- AMAT's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AMAT 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
- An Altman-Z score of 13.28 indicates that AMAT is not in any danger for bankruptcy at the moment.
- AMAT has a better Altman-Z score (13.28) than 78.76% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 1.15, AMAT is doing good in the industry, outperforming 74.34% 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.
- The Debt to Equity ratio of AMAT (0.32) is worse than 62.83% of its industry peers.
- Although AMAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 13.28 |
ROIC/WACC2.27
WACC10.72%
2.3 Liquidity
- A Current Ratio of 2.61 indicates that AMAT has no problem at all paying its short term obligations.
- The Current ratio of AMAT (2.61) is comparable to the rest of the industry.
- AMAT has a Quick Ratio of 1.90. This is a normal value and indicates that AMAT is financially healthy and should not expect problems in meeting its short term obligations.
- AMAT's Quick ratio of 1.90 is in line compared to the rest of the industry. AMAT outperforms 42.48% of its industry peers.
| 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.
- 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.
- AMAT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
- Measured over the past years, AMAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.52% on average per year.
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
- AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.04% yearly.
- AMAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
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.
- 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
- Based on the Price/Earnings ratio of 32.36, the valuation of AMAT can be described as expensive.
- 77.88% of the companies in the same industry are more expensive than AMAT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (27.30), we can say AMAT is valued inline with the index average.
- A Price/Forward Earnings ratio of 31.45 indicates a quite expensive 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 63.72% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. AMAT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 31.45 |
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.
- 76.11% of the companies in the same industry are more expensive than AMAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.62 | ||
| EV/EBITDA | 26.89 |
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.
PEG (NY)11.18
PEG (5Y)1.83
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, AMAT is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.53, AMAT pays a better dividend. On top of this AMAT pays more dividend than 80.53% of the companies listed in the same industry.
- With a Dividend Yield of 0.65, AMAT pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
5.3 Sustainability
- AMAT pays out 19.78% 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.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
304.87
-2.37 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-13 2025-11-13/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners85.06%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change1.45%
Market Cap242.87B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78.5
Price Target266.33 (-12.64%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)4.59%
PT rev (3m)32.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 31.45 | ||
| P/S | 8.56 | ||
| P/FCF | 42.62 | ||
| P/OCF | 30.52 | ||
| P/B | 11.9 | ||
| P/tB | 14.74 | ||
| EV/EBITDA | 26.89 |
EPS(TTM)9.42
EY3.09%
EPS(NY)9.69
Fwd EY3.18%
FCF(TTM)7.15
FCFY2.35%
OCF(TTM)9.99
OCFY3.28%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)11.18
PEG (5Y)1.83
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 | 13.28 |
F-Score6
WACC10.72%
ROIC/WACC2.27
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 Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.12%
EBIT Next 3Y9.46%
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 32.36 and the Price/Book (PB) ratio is 11.9.
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 19.78%.