(AMAT) Applied Materials - Overview
Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 398.329m USD | Total Return: 168.8% in 12m
Avg Turnover: 3.49B
EPS Trend: 98.0%
Qual. Beats: 16
Rev. Trend: 95.1%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Applied Materials, Inc. (AMAT) is a global leader in materials engineering solutions, specializing in the equipment and software required to manufacture semiconductor chips and advanced displays. The company operates primarily through two segments: Semiconductor Systems, which provides essential hardware for fabrication processes like etching and deposition, and Applied Global Services, which focuses on equipment optimization, maintenance, and factory automation.
As a key player in the semiconductor capital equipment sector, the company’s business model relies on the cyclical nature of chip manufacturing capacity expansions. The industry is currently characterized by high barriers to entry due to the extreme technical precision required for atomic-layer processing. Investors may find additional context on these industry cycles by reviewing the data available on ValueRay.
Headquartered in Santa Clara, California, the firm supports a diverse international client base of chipmakers and electronic device manufacturers. Its service-oriented segment provides a recurring revenue stream that helps stabilize the volatility typically associated with large-scale hardware sales.
- China export controls and trade restrictions impact long-term revenue growth potential
- High-volume foundry and logic spending drives semiconductor systems segment revenue
- Recurring service revenue from Applied Global Services stabilizes cash flow volatility
- Transition to gate-all-around transistor architecture increases demand for materials engineering
- Global semiconductor manufacturing capacity expansion boosts equipment order backlogs
| Net Income: 8.51b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -4.17 > 1.0 |
| NWC/Revenue: 46.76% < 20% (prev 41.70%; Δ 5.07% < -1%) |
| CFO/TA 0.20 > 3% & CFO 7.99b > Net Income 8.51b |
| Net Debt (-973.0m) to EBITDA (9.05b): -0.11 < 3 |
| Current Ratio: 2.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (799.0m) vs 12m ago -1.96% < -2% |
| Gross Margin: 48.96% > 18% (prev 48.14%; Δ 0.82% > 0.5%) |
| Asset Turnover: 78.53% > 50% (prev 83.52%; Δ -4.99% > 0%) |
| Interest Coverage Ratio: 31.14 > 6 (EBIT TTM 8.56b / Interest Expense TTM 275.0m) |
| A: 0.34 (Total Current Assets 22.6b - Total Current Liabilities 9.00b) / Total Assets 40.3b |
| B: 1.47 (Retained Earnings 59.3b / Total Assets 40.3b) |
| C: 0.23 (EBIT TTM 8.56b / Avg Total Assets 37.0b) |
| D: 1.46 (Book Value of Equity 23.9b / Total Liabilities 16.4b) |
| Altman-Z'' = 10.10 = AAA |
| DSRI: 0.99 (Receivables 6.37b/6.24b, Revenue 29.0b/28.1b) |
| GMI: 0.98 (GM 48.14% / 48.96%) |
| AQI: 1.08 (AQ_t 0.31 / AQ_t-1 0.29) |
| SGI: 1.03 (Revenue 29.0b / 28.1b) |
| TATA: 0.01 (NI 8.51b - CFO 7.99b) / TA 40.3b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of June 08, 2026, the stock is trading at USD 453.01 with a total of 11,888,258 shares traded.
Over the past week, the price has changed by +0.66%,
over one month by +10.46%,
over three months by +33.82% and
over the past year by +168.76%.
Applied Materials has received a consensus analysts rating of 4.49. Therefore, it is recommended to buy AMAT.
- StrongBuy: 27
- Buy: 4
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 511.2 | 12.8% |
P/E Trailing = 47.1523
P/E Forward = 41.6667
P/S = 13.6987
P/B = 16.2734
P/EG = 1.663
Revenue TTM = 29.0b USD
EBIT TTM = 8.56b USD
EBITDA TTM = 9.05b USD
Long Term Debt = 5.26b USD (from longTermDebt, last quarter)
Short Term Debt = 1.20b USD (from shortTermDebt, last quarter)
Debt = 7.27b USD (from shortLongTermDebtTotal, last quarter) + Leases 813.0m
Net Debt = -973.0m USD (calculated: Debt 7.27b - CCE 8.24b)
Enterprise Value = 397b USD (398b + Debt 7.27b - CCE 8.24b)
Interest Coverage Ratio = 31.14 (Ebit TTM 8.56b / Interest Expense TTM 275.0m)
EV/FCF = 74.40x (Enterprise Value 397b / FCF TTM 5.34b)
FCF Yield = 1.34% (FCF TTM 5.34b / Enterprise Value 397b)
FCF Margin = 18.40% (FCF TTM 5.34b / Revenue TTM 29.0b)
Net Margin = 29.31% (Net Income TTM 8.51b / Revenue TTM 29.0b)
Gross Margin = 48.96% ((Revenue TTM 29.0b - Cost of Revenue TTM 14.8b) / Revenue TTM)
Gross Margin QoQ = 49.90% (prev 48.99%)
Tobins Q-Ratio = 9.86 (Enterprise Value 397b / Total Assets 40.3b)
Interest Expense / Debt = 3.78% (Interest Expense 275.0m / Debt 7.27b)
Taxrate = 18.06% (1.88b / 10.4b)
NOPAT = 7.02b (EBIT 8.56b * (1 - 18.06%))
Current Ratio = 2.51 (Total Current Assets 22.6b / Total Current Liabilities 9.00b)
Debt / Equity = 0.30 (Debt 7.27b / totalStockholderEquity, last quarter 23.9b)
Debt / EBITDA = -0.11 (Net Debt -973.0m / EBITDA 9.05b)
Debt / FCF = -0.18 (Net Debt -973.0m / FCF TTM 5.34b)
Total Stockholder Equity = 21.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.02% (Net Income 8.51b / Total Assets 40.3b)
RoE = 39.78% (Net Income TTM 8.51b / Total Stockholder Equity 21.4b)
RoCE = 32.14% (EBIT 8.56b / Capital Employed (Equity 21.4b + L.T.Debt 5.26b))
RoIC = 22.61% (NOPAT 7.02b / Invested Capital 31.0b)
WACC = 13.26% (E(398b)/V(406b) * Re(13.45%) + D(7.27b)/V(406b) * Rd(3.78%) * (1-Tc(0.18)))
Discount Rate = 13.45% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -89.89 | Cagr: -2.04%
[DCF] Terminal Value 58.51% ; FCFF base≈5.55b ; Y1≈5.16b ; Y5≈4.68b
[DCF] Fair Price = 52.68 (EV 40.9b - Net Debt -973.0m = Equity 41.8b / Shares 794.0m; r=13.26% [WACC]; 5y FCF grow -8.87% → 2.50% )
EPS Correlation: 98.05 | EPS CAGR: 8.52% | SUE: 4.0 | # QB: 16
Revenue Correlation: 95.08 | Revenue CAGR: 3.64% | SUE: 1.11 | # QB: 1
EPS current Quarter (2026-07-31): EPS=3.38 | Chg30d=+17.72% | Revisions=+86% | Analysts=30
EPS current Year (2026-10-31): EPS=12.26 | Chg30d=+10.78% | Revisions=+88% | GrowthEPS=+30.1% | GrowthRev=+17.4%
EPS next Year (2027-10-31): EPS=16.17 | Chg30d=+14.92% | Revisions=+88% | GrowthEPS=+31.9% | GrowthRev=+25.6%
[Analyst] Revisions Ratio: +88%