AMAT Applied Materials, Inc. - Fundamental Analysis
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AMAT Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductor Equipment & Materials
Current Price
Live
$341.53
Analyst Target
$410.62
+20.2%
Upside
52W High
$395.95
52W Low
$123.74
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$271.04B
P/E
35.1
ROE
38.9%
Profit margin
27.8%
Debt/Equity
0.33
Dividend yield
0.62%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
Applied Materials (AMAT) exhibits exceptional financial health with a perfect Piotroski F-Score of 9/9, indicating strong operational efficiency and profitability. The company trades at a premium valuation (P/E 35.10, Price/Sales 9.61) relative to its sector, but this is justified by robust growth prospects, high margins (Gross 48.72%, ROE 38.86%), and a strong earnings surprise history. Despite a recent 2.1% YoY revenue decline, earnings growth of 75.2% and consistent beat rates (8.99% average surprise) signal resilience. The Graham Number ($77.40) and intrinsic value ($287.04) suggest undervaluation on a defensive basis, though the current price of $341.53 reflects high growth expectations. Insider selling in the last 6 months is a minor concern but does not override the overwhelming strength in fundamentals. Price trades at a 19.0% premium to fair value estimate ($287.04), limiting near-term upside from a valuation perspective.
Key Strengths
Perfect Piotroski F-Score of 9/9 indicating superior financial health and operational efficiency
Exceptional profitability with ROE of 38.86%, ROA of 14.85%, and gross margin of 48.72%
Strong earnings growth (75.2% YoY) and consistent earnings beat history (8.99% average surprise over 4 quarters)
High forward P/E of 24.67 suggests market optimism on future growth despite current valuation premium
Low debt/equity (0.33) and strong liquidity (current ratio 2.71) support financial stability
Key Risks
Recent 2.1% YoY revenue decline raises concerns about near-term demand in the semiconductor equipment sector
Insider selling activity (7 transactions, $6.53M value) may signal internal caution despite strong fundamentals
Current price of $341.53 is significantly above both the Graham Number ($77.40) and intrinsic value ($287.04), indicating high growth expectations
Lack of PEG ratio and missing cash flow data limit full assessment of valuation efficiency
No Altman Z-Score available, leaving bankruptcy risk unquantified despite strong balance sheet
AI Fair Value Estimate
Based on comprehensive analysis
$287.04
-16.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
71
Strong
52
89
91
95
30
AI Verdict
strong_buy
Key drivers: Perfect Piotroski F-Score, High ROE and gross margin, Strong earnings growth and beat history, Low leverage and strong liquidity, Positive analyst sentiment and target price
Confidence
78%
Value
52/100
Ref P/E, PEG, Graham Number
Positives
- Intrinsic value of $287.04 exceeds current price by ~19%
- Graham Number of $77.40 indicates defensive undervaluation
- Forward P/E of 24.67 is below sector average (77.53)
Watchpoints
- Current price ($341.53) is 19% above intrinsic value
- Price/Sales of 9.61 is extremely high for the sector
- No PEG ratio to assess growth-adjusted valuation
- Price trades at a 19.0% premium to fair value estimate ($287.04), limiting near-term upside from a valuation perspective.
Future
89/100
Ref Growth rates
Positives
- 75.2% YoY earnings growth and 71% Q/Q earnings growth
- Forward P/E of 24.67 implies strong growth expectations
- Consistent earnings beat history (8.99% average surprise)
Watchpoints
- Revenue growth declined to -2.1% YoY
- No Q/Q revenue growth data available
Past
91/100
Ref Historical trends
Positives
- 25 consecutive quarters of earnings beat history
- Average earnings surprise of 8.99% over last 4 quarters
- Strong historical EPS growth (6.7% YoY, 17.1% Q/Q)
Watchpoints
- One quarter (2022-05) missed estimates (-2.8%)
- 2021-11-18 and 2021-08-19 had slight misses
Health
95/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 9/9 indicates excellent financial health
- Debt/Equity of 0.33 is very low
- Current ratio of 2.71 and quick ratio of 1.74 show strong liquidity
Watchpoints
- No Altman Z-Score available, so bankruptcy risk cannot be quantified
Dividend
30/100
Ref Yield, Payout
Positives
- Dividend payout ratio of 18.26% is very conservative
- Dividend yield of 0.62% is stable and sustainable
Watchpoints
- Dividend strength score of 25/100 indicates weak yield
- No 5-year average yield or ex-dividend date data
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$341.53
Analyst Target
$410.62
Upside/Downside
+20.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AMAT and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AMAT
Applied Materials, Inc.
Primary
|
+210.2% | +191.2% | +129.8% | +104.2% | +0.6% | +5.2% |
|
LRCX
Lam Research Corporation
Peer
|
+306.0% | +388.5% | +184.0% | +122.3% | +43.9% | +2.1% |
|
IBM
International Business Machines Corporation
Peer
|
+232.3% | +136.3% | +50.0% | +16.0% | +9.5% | +0.3% |
|
CSCO
Cisco Systems, Inc.
Peer
|
+92.3% | +70.3% | +28.8% | +11.8% | -0.5% | +1.8% |
|
AMD
Advanced Micro Devices, Inc.
Peer
|
+134.4% | +121.1% | +97.1% | +22.0% | -9.4% | +0.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
35.1
Forward P/E
24.67
PEG Ratio
N/A
P/B Ratio
12.48
P/S Ratio
9.61
EV/Revenue
9.56
EV/EBITDA
30.34
Market Cap
$271.04B
Profitability
Profit margins and return metrics
Profit Margin
27.78%
Operating Margin
29.89%
Gross Margin
48.72%
ROE
38.86%
ROA
14.85%
Growth
Revenue and earnings growth rates
Revenue Growth
-2.1%
Earnings Growth
+75.2%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+71.0%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.33
Low debt
Current Ratio
2.71
Strong
Quick Ratio
1.74
Excellent
Cash/Share
$10.72
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-14
$N/A
2026-02-12
$2.54
+18.2% surprise
2025-11-13
$2.17
+3.6% surprise
2025-08-14
$2.48
+5.1% surprise
Technology Sector Comparison
Comparing AMAT against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
35.1
This Stock
vs
90.97
Sector Avg
-61.4%
(Discount)
Return on Equity (ROE)
38.86%
This Stock
vs
-8.13%
Sector Avg
-578.0%
(Below Avg)
Profit Margin
27.78%
This Stock
vs
-7.75%
Sector Avg
-458.3%
(Weaker)
Debt to Equity
0.33
This Stock
vs
0.76
Sector Avg
-56.7%
(Less Debt)
Revenue Growth
-2.1%
This Stock
vs
56.87%
Sector Avg
-103.7%
(Slower)
Current Ratio
2.71
This Stock
vs
3.33
Sector Avg
-18.6%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AMAT
Applied Materials, Inc.
|
NEUTRAL | $271.04B | 35.1 | 38.9% | 27.8% | $341.53 | |
|
LRCX
Lam Research Corporation
|
NEUTRAL | $281.16B | 49.33 | 62.3% | 29.7% | $222.96 | |
|
IBM
International Business...
|
NEUTRAL | $285.74B | 36.48 | 30.2% | 12.1% | $305.69 | |
|
CSCO
Cisco Systems, Inc.
|
NEUTRAL | $297.08B | 29.03 | 22.4% | 17.9% | $75.19 | |
|
AMD
Advanced Micro Devices, Inc.
|
NEUTRAL | $315.31B | 74.1 | 7.1% | 12.5% | $193.39 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-25 | BRUNER JUDY | Director | Sale | 2,500 | $979,275 |
| 2026-02-24 | SANDERS ADAM | Officer | Sale | 534 | $202,471 |
| 2026-02-23 | BRUNER JUDY | Director | Sale | 3,969 | $1,496,404 |
| 2026-02-17 | HILL BRICE | Chief Financial Officer | Sale | 5,000 | $1,806,062 |
| 2025-12-31 | CHEN XUN ERIC | Director | Stock Award | 187 | - |
| 2025-12-12 | RAJA PRABURAM G. | Officer | Gift | 50 | - |
| 2025-12-11 | HILL BRICE | Chief Financial Officer | Stock Award | 41,102 | - |
| 2025-12-11 | DEANE TIMOTHY M | Officer | Stock Award | 27,831 | - |
| 2025-12-11 | SANDERS ADAM | Officer | Stock Award | 1,070 | - |
| 2025-12-11 | NALAMASU OMKARAM | Chief Technology Officer | Stock Award | 28,802 | - |
| 2025-12-11 | LITTLE TERI A | Officer | Stock Award | 23,070 | - |
| 2025-12-11 | RAJA PRABURAM G. | Officer | Stock Award | 49,877 | - |
| 2025-12-11 | DICKERSON GARY E | Chief Executive Officer | Stock Award | 191,220 | - |
| 2025-12-08 | NALAMASU OMKARAM | Chief Technology Officer | Gift | 15 | - |
| 2025-12-01 | SANDERS ADAM | Officer | Sale | 609 | $155,620 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
32 analysts
Morgan Stanley
2026-02-25
Overweight
Overweight
Barclays
2026-02-17
Overweight
Overweight
Citigroup
2026-02-13
Buy
Buy
Goldman Sachs
2026-02-13
Buy
Buy
Stifel
2026-02-13
Buy
Buy
TD Cowen
2026-02-13
Buy
Buy
Wells Fargo
2026-02-13
Overweight
Overweight
B. Riley Securities
2026-02-13
Buy
Buy
Mizuho
2026-02-13
Outperform
Outperform
Keybanc
2026-02-13
Overweight
Overweight
Past News Coverage
Recent headlines mentioning AMAT from our newsroom.
Newest → oldest
No matching news yet.