AMAT

Applied Materials, Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

05/14/2026

Business Summary

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. The company operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

 


VALUATION

P/E

45.00

Market Cap ($M USD)

$353.01B

Forward P/E

25.00

PEG

0.31

PRICE TO SALES

12.51

PRICE TO BOOK

16.24

EV / EBITDA

35.70

5-Year Average P/E

Free Cash Flow Yield

1.75%

DCF Value

$-363.97

Graham Number

$78.05

Price to FCF

56.99

EV to FCF

56.99

Earnings Yield

2.22%

FCF Yield

1.75%

DIVIDEND

Yield

0.41%

Annual Payout

$1.84

Payout Ratio

18.15%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$9.89

Next Year EPS Growth Estimate

$17.79

Next Year Revenue Growth Estimate

$4.41T

Return on Equity (ROE)

38.90%

FREE CASH FLOW

Operating Margin

29.10%

Debt-to-Equity

0.35

Piotroski F-Score

7

Altman Z-Score

17.16

Return on Invested Capital (ROIC)

27.47%

Current Ratio

2.71

Quick Ratio

1.94

Net Debt to EBITDA

0.00

Interest Coverage

29.96

Gross Profit margin

48.72%

FCF PER SHARE

$7.81

REVENUE PER SHARE

$35.58

Gainseekers Quantitative Analysis

Summary

The market’s current valuation of AMAT seems to be on shaky ground. With a Price/Earnings ratio of 44.05 and a Forward P/E of 24.48, the stock appears richly valued, especially when juxtaposed against its negative DCF Value. The Graham Number of 78.05 further underscores this overvaluation. However, the Altman Z-score of 17.16 suggests robust financial health, indicating low bankruptcy risk. The Earnings Yield of 2.27% is underwhelming, hinting at limited immediate returns for investors.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, AMAT is well-placed to capitalize on the AI revolution. The sector's inherent demand for advanced materials and processing power aligns seamlessly with AI's growth trajectory. This positions AMAT to potentially benefit from increased demand for cutting-edge semiconductor solutions.

The Bull Case

For the discerning GARP investor, AMAT offers compelling reasons to buy. The company boasts a stellar ROIC of 27.47%, indicating exceptional capital efficiency. A Piotroski F-Score of 7 reflects solid financial health, while an Operating Margin of 29.10% showcases strong pricing power. Despite a modest FCF Yield of 1.79%, the company's ability to generate cash flow remains robust, suggesting a well-managed operation with room for growth.

The Bear Case

Yet, the stock is not without its pitfalls. With a Price/Book ratio of 15.90 and Price/Sales of 12.25, AMAT is trading at lofty multiples, raising concerns about overvaluation. The proximity to its 52-week high, just 0.60% away, suggests potential technical overextension. Additionally, a Price to FCF of 55.79 indicates that cash flow generation may not justify the current price levels, posing a risk for investors seeking value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$437.10

Institutional Ownership %

1-Year Beta

1.65

Insider Buying % (6 Mo)

Distance to 52-Week High

0.40%

Distance to 52-Week Low

65.50%

EARNINGS SURPRISE %

7.69%

50-DAY SMA

$373.04

200-DAY SMA

$274.98

⚠️ 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.