AMAT

Applied Materials, Inc.

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manufacture semiconductors. It operates through the following segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes designing, development, manufacturing and sale of equipment used to fabricate semiconductor chips referred to as integrated circuits. The AGS segment engages in provision of services, spares, and factory automation software to customer fabrication plants globally. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

 


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VALUATION

P/E

55.32

Market Cap ($M USD)

$470.65B

Forward P/E

26.14

PEG

0.23

PRICE TO SALES

16.22

PRICE TO BOOK

19.69

EV / EBITDA

42.25

5-Year Average P/E

Free Cash Flow Yield

1.27%

DCF Value

$-373.44

Graham Number

$85.21

Price to FCF

78.90

EV to FCF

78.93

Earnings Yield

1.81%

FCF Yield

1.27%

DIVIDEND

Yield

0.32%

Annual Payout

$1.91

Payout Ratio

12.91%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$10.72

Next Year EPS Growth Estimate

$22.68

Next Year Revenue Growth Estimate

$54.16B

Return on Equity (ROE)

39.78%

FREE CASH FLOW

Operating Margin

29.51%

Debt-to-Equity

0.35

Piotroski F-Score

7

Altman Z-Score

21.60

Return on Invested Capital (ROIC)

27.37%

Current Ratio

2.51

Quick Ratio

1.80

Net Debt to EBITDA

0.01

Interest Coverage

31.14

Gross Profit margin

48.96%

FCF PER SHARE

$7.51

REVENUE PER SHARE

$36.55

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Gainseekers Quantitative Analysis

Summary

The market’s current valuation of Applied Materials, Inc. appears to be significantly inflated. With a Price/Earnings ratio of 67.47 and a Price/Book of 24.01, the stock trades well above its intrinsic value, as indicated by a negative DCF Value and a Graham Number of 85.21. Despite a robust Altman Z-score of 22.29 suggesting financial stability, the Earnings Yield of 1.48% is underwhelming, hinting at limited immediate returns. The Forward P/E of 31.88, while lower, still suggests high expectations for future growth, which may not be justified given the current pricing.

AI Exposure / Tech Reliance

In the rapidly evolving semiconductor industry, Applied Materials is strategically positioned to capitalize on AI advancements. As a key player in technology, the company is poised to leverage its expertise in materials engineering to meet the demands of AI-driven innovations. This adaptability ensures resilience in a sector characterized by constant technological shifts.

The Bull Case

For the discerning GARP investor, Applied Materials presents a compelling case with its impressive ROIC of 27.37% and a Piotroski F-Score of 7, indicating strong operational efficiency and financial health. The company's operating margin of 29.51% underscores its pricing power, while a manageable Debt/Equity ratio of 0.35 reflects prudent financial management. Despite a modest FCF Yield of 1.04%, the company's ability to generate cash and reinvest effectively positions it as a long-term growth candidate.

The Bear Case

However, the stock's high valuation multiples, such as a Price/Sales ratio of 19.78 and an EV to EBITDA of 51.53, raise red flags about potential overvaluation. Trading near its 52-week high, the stock is technically overextended, suggesting limited upside potential. The Price to FCF ratio of 96.23 further highlights concerns about cash flow efficiency, making it a risky bet for those wary of inflated expectations. Despite strong fundamentals, the current price may not justify the investment risk.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$606.21

Institutional Ownership %

1-Year Beta

1.57

Insider Buying % (6 Mo)

Distance to 52-Week High

24.78%

Distance to 52-Week Low

73.94%

EARNINGS SURPRISE %

6.72%

50-DAY SMA

$493.97

200-DAY SMA

$341.45

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.