AMAT Applied Materials, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
While AMAT’s P/E of 26.10 is below the sector average of 175.57, it remains elevated on an absolute basis; however, its superior profitability and lower volatility justify a premium relative to peers like INTC (P/E 631.50) and NOW (P/E 103.21).
- Forward P/E of 23.32 is reasonable given growth and margin profile
- P/S of 6.35 appears justified relative to sector average P/E of 175.57 and high-margin business model
- P/B of 8.79 is high, reflecting rich intangible asset valuation
- Lack of EV/EBITDA and PEG data limits full-cycle valuation assessment
Despite a contraction in top-line growth, AMAT’s bottom-line expansion and improving earnings momentum (9.6% Q/Q) suggest cost optimization and strong demand for advanced process technologies, supported by strong 6M price return of +37.3% indicating positive market anticipation.
- Earnings growth of 13.5% YoY demonstrates resilience despite sector-wide capex caution
- Q/Q earnings growth of 9.6% suggests inflection in profitability momentum
- Revenue growth of -3.5% YoY reflects ongoing weakness in semiconductor equipment spending
- Lack of Q/Q revenue data limits visibility into near-term recovery
AMAT has delivered exceptional long-term shareholder returns (+217.2% over 5Y) and maintained best-in-class margins, though recent earnings have met but not exceeded expectations, potentially capping near-term upside until a positive surprise materializes.
- Consistent profitability with gross margin of 48.68% and operating margin of 27.84%
- Five-year share price appreciation of +217.2% reflects strong execution and sector tailwinds
- No quarterly earnings beats in the last four quarters, suggesting guidance conservatism or execution slippage
- Incomplete earnings history data limits trend analysis
AMAT’s balance sheet is conservatively leveraged and highly liquid compared to peers, providing strategic flexibility during cyclical downturns—particularly important in the capital-intensive semiconductor equipment industry where peers like QCOM carry higher debt/equity of 0.74.
- Debt/Equity of 0.32 is well below sector average of 0.74, reducing refinancing risk
- Current ratio of 2.61 and quick ratio of 1.72 indicate strong short-term liquidity
- Missing total cash and debt figures limit full liquidity runway analysis
- No free cash flow data impedes burn rate or reinvestment capacity assessment
While AMAT’s dividend is not a primary investment thesis, the 0.81% yield is well-covered by earnings and reflects a disciplined capital allocation strategy that prioritizes reinvestment and buybacks over aggressive payout growth.
- Dividend payout ratio of 19.86% indicates high sustainability and room for future increases
- Yield of 0.81% provides modest income with low capital allocation risk
- Low yield offers limited appeal to income-focused investors
- Lack of 5-year yield history and ex-dividend date reduces transparency into policy consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AMAT and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AMAT
Applied Materials, Inc.
Primary
|
+217.2% | +110.3% | +22.8% | +37.3% | -0.7% | -1.8% |
|
NOW
ServiceNow, Inc.
Peer
|
+69.3% | +102.7% | -18.2% | -18.2% | -5.8% | -1.3% |
|
QCOM
QUALCOMM Incorporated
Peer
|
+29.9% | +48.0% | +8.5% | +15.4% | +6.8% | +1.8% |
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
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Technology Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AMAT
Applied Materials, Inc.
|
BULLISH | $180.05B | 26.1 | 35.5% | 24.7% | $226.01 | |
|
INTC
Intel Corporation
|
NEUTRAL | $180.74B | 631.5 | 0.2% | 0.4% | $37.89 | |
|
NOW
ServiceNow, Inc.
|
BULLISH | $176.45B | 103.21 | 16.8% | 13.7% | $850.43 | |
|
INTU
Intuit Inc.
|
NEUTRAL | $183.82B | 48.3 | 20.3% | 20.5% | $659.3 | |
|
QCOM
QUALCOMM Incorporated
|
NEUTRAL | $186.89B | 34.73 | 23.3% | 12.5% | $173.98 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-24 | RAJA PRABURAM G. | Officer | Stock Award | 33,769 | - |
| 2025-10-24 | DICKERSON GARY E | Chief Executive Officer | Stock Award | 116,145 | - |
| 2025-07-18 | ANDERSON JAMES ROBERT | Director | Stock Award | 806 | - |
| 2025-07-02 | DEANE TIMOTHY M | Officer | Gift | 2,206 | - |
| 2025-06-24 | SANDERS ADAM | Officer | Sale | 562 | $100,373 |
Wall Street Analysts
Professional analyst ratings and price targets