296.01 USD
+11.69 (+4.11%)
295.75 USD
-0.26 (-0.09%)
AMAT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate. These ratings could make AMAT a good candidate for quality investing.
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.
In the past 5 years AMAT has always been profitable.
Each year in the past 5 years AMAT had a positive operating cash flow.
1.2 Ratios
AMAT has a better Return On Assets (19.28%) 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.
AMAT has a better Return On Invested Capital (24.38%) than 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.
In the last couple of years the Profit Margin of AMAT has grown nicely.
With an excellent Operating Margin value of 29.86%, AMAT belongs to the best of the industry, outperforming 90.27% of the companies in the same industry.
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.
AMAT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMAT has less shares outstanding
The debt/assets ratio for AMAT has been reduced compared to a year ago.
2.2 Solvency
AMAT has an Altman-Z score of 12.66. This indicates that AMAT is financially healthy and has little risk of bankruptcy at the moment.
AMAT has a better Altman-Z score (12.66) than 79.65% 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 74.34% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AMAT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, AMAT is doing worse than 62.83% of the companies in the same industry.
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 | 12.66 |
ROIC/WACC2.26
WACC10.78%
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.
A Quick Ratio of 1.90 indicates that AMAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.90, AMAT is in line with its industry, outperforming 42.48% of the companies in the same 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.
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.
The Revenue has been growing slightly by 4.39% in the past year.
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.
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
With a Price/Earnings ratio of 31.42, AMAT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 77.88% of the companies in the same industry.
AMAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.17.
A Price/Forward Earnings ratio of 30.54 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 62.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMAT to the average of the S&P500 Index (23.79), we can say AMAT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.42 | ||
| Fwd PE | 30.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMAT indicates a somewhat cheap valuation: AMAT is cheaper than 69.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than the industry average as 76.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.39 | ||
| EV/EBITDA | 25.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AMAT may justify a higher PE ratio.
PEG (NY)10.86
PEG (5Y)1.78
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, AMAT is not a good candidate for dividend investing.
AMAT's Dividend Yield is rather good when compared to the industry average which is at 0.57. AMAT pays more dividend than 80.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, AMAT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 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
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 2Y11.54%
EPS Next 3Y9.31%
296.01
+11.69 (+4.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.06%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change1.48%
Market Cap235.81B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78
Price Target266.33 (-10.03%)
Short Float %2.23%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend1.71
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years7
Div Non Decr Years19
Ex-Date
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)11.08%
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 | 31.42 | ||
| Fwd PE | 30.54 | ||
| P/S | 8.31 | ||
| P/FCF | 41.39 | ||
| P/OCF | 29.63 | ||
| P/B | 11.55 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 25.05 |
EPS(TTM)9.42
EY3.18%
EPS(NY)9.69
Fwd EY3.27%
FCF(TTM)7.15
FCFY2.42%
OCF(TTM)9.99
OCFY3.37%
SpS35.61
BVpS25.63
TBVpS20.69
PEG (NY)10.86
PEG (5Y)1.78
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 | 12.66 |
F-Score6
WACC10.78%
ROIC/WACC2.26
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 31.42 and the Price/Book (PB) ratio is 11.55.
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%.