APPLIED MATERIALS INC (AMAT) Stock Fundamental Analysis

NASDAQ:AMAT • US0382221051

354.91 USD
+26.52 (+8.08%)
At close: Feb 13, 2026
354 USD
-0.91 (-0.26%)
After Hours: 2/13/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to AMAT. AMAT was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AMAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AMAT has a correct valuation and a medium growth rate. This makes AMAT very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

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.
  • Each year in the past 5 years AMAT has been profitable.
  • In the past 5 years AMAT always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 19.28%, AMAT belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
  • AMAT has a better Return On Equity (34.28%) than 93.81% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for AMAT is significantly above the industry average of 10.66%.
Industry RankSector 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%
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 Profit Margin of 24.67%. This is amongst the best in the industry. AMAT outperforms 82.30% of its industry peers.
  • AMAT's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AMAT (29.86%) is better than 90.27% of its industry peers.
  • In the last couple of years the Operating Margin of AMAT has grown nicely.
  • AMAT has a Gross Margin (48.67%) which is comparable to the rest of the industry.
  • AMAT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AMAT is creating value.
  • AMAT has less shares outstanding than it did 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.
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 14.75 indicates that AMAT is not in any danger for bankruptcy at the moment.
  • AMAT's Altman-Z score of 14.75 is amongst the best of the industry. AMAT outperforms 80.53% 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.
  • AMAT's Debt to FCF ratio of 1.15 is fine compared to the rest of the industry. AMAT outperforms 71.68% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.32, AMAT is not doing good in the industry: 62.83% of the companies in the same industry are doing better.
  • 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 0.32
Debt/FCF 1.15
Altman-Z 14.75
ROIC/WACC2.27
WACC10.76%
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 2.61 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.
  • With a Quick ratio value of 1.90, AMAT perfoms like the industry average, outperforming 42.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.61
Quick Ratio 1.9
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

5

3. Growth

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.
  • Looking at the last year, AMAT shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
  • The Revenue has been growing by 10.52% on average over the past years. This is quite good.
EPS 1Y (TTM)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.04% on average over the next years. This is quite good.
  • Based on estimates for the next years, AMAT will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less 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
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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 37.68, the valuation of AMAT can be described as expensive.
  • AMAT's Price/Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 77.88% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.68. AMAT is valued slightly more expensive when compared to this.
  • A Price/Forward Earnings ratio of 28.91 indicates a quite expensive valuation of AMAT.
  • AMAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMAT is cheaper than 74.34% of the companies in the same industry.
  • AMAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.68
Fwd PE 28.91
AMAT Price Earnings VS Forward Price EarningsAMAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 72.57% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 49.44
EV/EBITDA 31.25
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 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.
  • AMAT's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.96
PEG (5Y)2.14
EPS Next 2Y14.15%
EPS Next 3Y12.65%

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

5

5. Dividend

5.1 Amount

  • AMAT has a yearly dividend return of 0.56%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.50, AMAT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.84, AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.56%

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 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

  • AMAT pays out 19.78% of its income as dividend. This is a 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%
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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Find the best dividend stocksShow peers with best dividend

APPLIED MATERIALS INC

NASDAQ:AMAT (2/13/2026, 8:00:00 PM)

After market: 354 -0.91 (-0.26%)

354.91

+26.52 (+8.08%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-13
Inst Owners85.06%
Inst Owner Change-88.88%
Ins Owners0.27%
Ins Owner Change1.48%
Market Cap281.70B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts80
Price Target329.63 (-7.12%)
Short Float %2.03%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 0.56%
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date02-19
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)0.44%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 37.68
Fwd PE 28.91
P/S 9.93
P/FCF 49.44
P/OCF 35.4
P/B 13.8
P/tB 17.09
EV/EBITDA 31.25
EPS(TTM)9.42
EY2.65%
EPS(NY)12.27
Fwd EY3.46%
FCF(TTM)7.18
FCFY2.02%
OCF(TTM)10.03
OCFY2.82%
SpS35.74
BVpS25.72
TBVpS20.77
PEG (NY)8.96
PEG (5Y)2.14
Graham Number73.83
Profitability
Industry RankSector 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 RankSector 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 14.75
F-Score6
WACC10.76%
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)5.72%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%0%
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%-2.15%
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 37.68 and the Price/Book (PB) ratio is 13.8.


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%.