APPLIED MATERIALS INC (AMAT) Fundamental Analysis & Valuation

NASDAQ:AMAT • US0382221051

Current stock price

354.31 USD
+1.69 (+0.48%)
At close:
369.5 USD
+15.19 (+4.29%)
After Hours:

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.
  • 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

  • AMAT has a Return On Assets of 20.82%. This is amongst the best in the industry. AMAT outperforms 93.91% of its industry peers.
  • The Return On Equity of AMAT (36.10%) is better than 94.78% of its industry peers.
  • AMAT has a better Return On Invested Capital (22.88%) than 94.78% 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 10.70%.
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

  • The Profit Margin of AMAT (27.78%) is better than 86.09% of its industry peers.
  • In the last couple of years the Profit Margin of AMAT has grown nicely.
  • 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 has a Gross Margin (48.72%) 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 29.74%
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.
  • The number of shares outstanding for AMAT has been reduced compared to 1 year ago.
  • Compared to 5 years ago, AMAT has less shares outstanding
  • 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 14.57 indicates that AMAT is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 14.57, AMAT is doing good in the industry, outperforming 79.13% of the companies in the same industry.
  • 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.
  • AMAT has a Debt to FCF ratio of 1.06. This is in the better half of the industry: AMAT outperforms 73.04% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that AMAT is not too dependend on debt financing.
  • AMAT has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: AMAT underperforms 60.87% of its industry peers.
  • Although AMAT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.3
Debt/FCF 1.06
Altman-Z 14.57
ROIC/WACC1.98
WACC11.55%
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

  • AMAT has a Current Ratio of 2.71. This indicates that AMAT is financially healthy and has no problem in meeting its short term obligations.
  • AMAT's Current ratio of 2.71 is in line compared to the rest of the industry. AMAT outperforms 45.22% of its industry peers.
  • 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.
  • AMAT has a Quick ratio (1.98) which is comparable to the rest of the industry.
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

  • AMAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.72%.
  • 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 2.10% in the past 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)2.1%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-2.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
  • AMAT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.66% yearly.
EPS Next Y19.03%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
EPS Next 5Y17.88%
Revenue Next Year11.26%
Revenue Next 2Y15.33%
Revenue Next 3Y12.97%
Revenue Next 5Y12.66%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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

  • With a Price/Earnings ratio of 37.61, AMAT can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, AMAT is valued a bit cheaper than 75.65% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of AMAT to the average of the S&P500 Index (26.21), we can say AMAT is valued slightly more expensively.
  • Based on the Price/Forward Earnings ratio of 24.84, the valuation of AMAT can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, AMAT is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.10. AMAT is around the same levels.
Industry RankSector Rank
PE 37.61
Fwd PE 24.84
AMAT Price Earnings VS Forward Price EarningsAMAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AMAT is valued a bit cheaper than the industry average as 70.43% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, AMAT is valued a bit cheaper than 70.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 45.4
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.
  • The excellent profitability rating of AMAT may justify a higher PE ratio.
  • AMAT's earnings are expected to grow with 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.98
PEG (5Y)2.13
EPS Next 2Y23.04%
EPS Next 3Y16.76%

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

6

5. AMAT Dividend Analysis

5.1 Amount

  • AMAT has a yearly dividend return of 0.63%, which is pretty low.
  • AMAT's Dividend Yield is a higher than the industry average which is at 0.52.
  • Compared to an average S&P500 Dividend Yield of 1.89, AMAT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.63%

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

  • 18.15% of the earnings are spent on dividend by AMAT. This is a low number and sustainable payout ratio.
  • The dividend of AMAT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.15%
EPS Next 2Y23.04%
EPS Next 3Y16.76%
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 (4/7/2026, 7:59:00 PM)

After market: 369.5 +15.19 (+4.29%)

354.31

+1.69 (+0.48%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-12
Earnings (Next)05-14
Inst Owners85.14%
Inst Owner Change0%
Ins Owners0.31%
Ins Owner Change1.53%
Market Cap281.18B
Revenue(TTM)28.21B
Net Income(TTM)7.84B
Analysts81.4
Price Target415.88 (17.38%)
Short Float %1.73%
Short Ratio1.75
Dividend
Industry RankSector Rank
Dividend Yield 0.63%
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)0.44%
PT rev (3m)56.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.15%
EPS NY rev (1m)0%
EPS NY rev (3m)15.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.41%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)8.91%
Valuation
Industry RankSector Rank
PE 37.61
Fwd PE 24.84
P/S 9.97
P/FCF 45.4
P/OCF 32.25
P/B 12.95
P/tB 15.8
EV/EBITDA 31.25
EPS(TTM)9.42
EY2.66%
EPS(NY)14.26
Fwd EY4.03%
FCF(TTM)7.8
FCFY2.2%
OCF(TTM)10.99
OCFY3.1%
SpS35.55
BVpS27.36
TBVpS22.42
PEG (NY)1.98
PEG (5Y)2.13
Graham Number76.16
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 14.57
F-Score7
WACC11.55%
ROIC/WACC1.98
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 2Y23.04%
EPS Next 3Y16.76%
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 Year17.79%
EBIT Next 3Y19.39%
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%.