APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation

NASDAQ:AMAT • US0382221051

Current stock price

392.08 USD
-2.18 (-0.55%)
Last:

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.
  • In the past year AMAT had a positive cash flow from operations.
  • 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

  • AMAT has a better Return On Assets (20.82%) than 93.91% of its industry peers.
  • The Return On Equity of AMAT (36.10%) is better than 94.78% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 22.88%, AMAT belongs to the top of the industry, outperforming 94.78% 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 10.70%.
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

  • AMAT has a better Profit Margin (27.78%) than 86.09% of its industry peers.
  • AMAT's Profit Margin has improved in the last couple of years.
  • AMAT has a Operating Margin of 29.74%. This is amongst the best in the industry. AMAT outperforms 88.70% of its industry peers.
  • 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 59.13% 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

  • AMAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, AMAT has less shares outstanding
  • AMAT has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AMAT has an improved debt to assets ratio.
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

  • An Altman-Z score of 15.81 indicates that AMAT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of AMAT (15.81) is better than 79.13% of its industry peers.
  • AMAT has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
  • The Debt to FCF ratio of AMAT (1.06) is better than 73.04% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that AMAT is not too dependend on debt financing.
  • The Debt to Equity ratio of AMAT (0.30) is worse than 61.74% 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 RankSector Rank
Debt/Equity 0.3
Debt/FCF 1.06
Altman-Z 15.81
ROIC/WACC1.97
WACC11.64%
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

  • A Current Ratio of 2.71 indicates that AMAT has no problem at all paying its short term obligations.
  • AMAT has a Current ratio (2.71) which is comparable to the rest of the industry.
  • 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.
  • The Quick ratio of AMAT (1.98) is worse than 60.00% of 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.
  • 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 2.10%.
  • 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)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

  • AMAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
  • Based on estimates for the next years, AMAT will show a quite strong growth in Revenue. The Revenue will grow by 12.66% on average per year.
EPS Next Y19.03%
EPS Next 2Y23.01%
EPS Next 3Y16.96%
EPS Next 5Y17.88%
Revenue Next Year11.26%
Revenue Next 2Y15.33%
Revenue Next 3Y12.97%
Revenue Next 5Y12.66%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 41.62, which means the current valuation is very expensive for AMAT.
  • Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 76.52% of the companies in the same industry.
  • AMAT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
  • Based on the Price/Forward Earnings ratio of 27.51, the valuation of AMAT can be described as expensive.
  • AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 73.91% of the companies in the same industry.
  • AMAT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.20.
Industry RankSector Rank
PE 41.62
Fwd PE 27.51
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

  • AMAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 72.17% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 71.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 50.24
EV/EBITDA 34.98
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.
  • 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 16.96% in the coming years.
PEG (NY)2.19
PEG (5Y)2.36
EPS Next 2Y23.01%
EPS Next 3Y16.96%

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6

5. AMAT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.53%, AMAT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.47, AMAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

  • On average, the dividend of AMAT grows each year by 14.79%, which is quite nice.
  • AMAT has paid a dividend for at least 10 years, which is 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 Years8
Div Non Decr Years20
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

  • AMAT pays out 18.15% of its income as dividend. This is a sustainable payout ratio.
  • AMAT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.15%
EPS Next 2Y23.01%
EPS Next 3Y16.96%
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 (4/16/2026, 11:43:52 AM)

392.08

-2.18 (-0.55%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-14
Inst Owners85.19%
Inst Owner Change-0.48%
Ins Owners0.31%
Ins Owner Change1.53%
Market Cap311.16B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target423.69 (8.06%)
Short Float %1.65%
Short Ratio1.76
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP18.15%
Div Incr Years8
Div Non Decr Years20
Ex-Date05-21
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)2.32%
PT rev (3m)59.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.15%
EPS NY rev (1m)0%
EPS NY rev (3m)15.69%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)10.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)8.91%
Valuation
Industry RankSector Rank
PE 41.62
Fwd PE 27.51
P/S 11.03
P/FCF 50.24
P/OCF 35.69
P/B 14.33
P/tB 17.49
EV/EBITDA 34.98
EPS(TTM)9.42
EY2.4%
EPS(NY)14.25
Fwd EY3.64%
FCF(TTM)7.8
FCFY1.99%
OCF(TTM)10.99
OCFY2.8%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)2.19
PEG (5Y)2.36
Graham Number76.1576 (-80.58%)
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 15.81
F-Score7
WACC11.64%
ROIC/WACC1.97
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 2Y23.01%
EPS Next 3Y16.96%
EPS Next 5Y17.88%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%
Revenue Next Year11.26%
Revenue Next 2Y15.33%
Revenue Next 3Y12.97%
Revenue Next 5Y12.66%
EBIT growth 1Y3.91%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year18.08%
EBIT Next 3Y19.3%
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.


What is the profitability of AMAT stock?

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


What is the expected EPS growth for APPLIED MATERIALS INC (AMAT) stock?

The Earnings per Share (EPS) of APPLIED MATERIALS INC (AMAT) is expected to grow by 19.03% in the next year.


Can you provide the dividend sustainability for AMAT stock?

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