Applied Materials Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductor Equipment & Materials
Applied Materials, Inc. is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future.
Did you know?
Capital expenditures increased by 90% from FY24 to FY25.
Current Price
$348.47
-1.51%GoodMoat Value
$315.48
9.5% overvaluedProfile
Valuation (TTM)
Market Cap$276.32B
P/E35.25
EV$284.92B
P/B13.53
Shares Out792.94M
P/Sales9.79
Revenue$28.21B
EV/EBITDA26.87
Applied Materials Inc (AMAT) Stock Analysis
GoodMoat Analysis
Applied Materials is a high-quality, moat-protected leader in semiconductor manufacturing equipment, but its current price appears elevated relative to its estimated fair value. The company demonstrates strong financial health with high profitability and returns, yet recent revenue growth is negative. For a value investor, this presents a 'with caution' scenario, requiring a better price or clearer growth re-acceleration.
Read full analysis
Applied Materials Inc (AMAT) is a critical player in the semiconductor ecosystem, designing and manufacturing the complex machines and materials needed to produce advanced chips. Its business is underpinned by a durable competitive moat, likely scoring high in the framework's Moat Identification section. Key advantages include significant technology leadership and proprietary IP, being a first and volume provider of essential equipment. It also benefits from high switching costs, as its tools are mission-critical and integrated into customers' multi-billion-dollar fabrication lines, and strategic partnerships with the world's largest chipmakers. The company exhibits strong Quality Indicators, with an ROE of 38.4% and an operating margin of 29.2%, far exceeding the high-return thresholds, and a solid balance sheet with a Debt/Equity ratio of 0.32. However, the current valuation assessment is challenging. The stock trades at a P/E of 37.4x, which is high for a company with a -2.1% YoY revenue growth rate. More importantly, the current price of $369.34 is above the provided GoodMoat Target of $315.48, suggesting a negative or marginal margin of safety in a DCF analysis. Following the Decision Framework, AMAT likely passes the Moat & Quality Gate but may fail the Valuation & Risk Gate. The combination of high valuation multiples, negative revenue growth, and a price above the target fair value points to an assessment of 'with caution.' It is a company worth investigating further for its quality, but a more favourable entry point would be required for a value-oriented margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$276.32B
Current Price$348.47
P/E Ratio35.25
Forward P/E—
PEG Ratio0.47
EPS$8.66
Book Value$25.75
P/B Ratio13.53
AMAT Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 12.5% FCF growth (CAGR)
Cash vs Debt
Net Cash: 686M
Revenue
14.6B
FY19
17.2B
FY20
23.1B
FY21
25.8B
FY22
26.5B
FY23
27.2B
FY24
28.4B
FY25
Net Income
2.7B
FY19
3.6B
FY20
5.9B
FY21
6.5B
FY22
6.9B
FY23
7.2B
FY24
7.0B
FY25
AMAT 52-Week Range
$127.80
$394.95
50-Day MA: $345.71200-Day MA: $248.31
Did you know?
Net income compounded at 17.2% annually over 6 years.
Applied Materials Inc (AMAT) Financial Summary
Applied Materials Inc (AMAT) is a Technology company in the Semiconductor Equipment & Materials industry, listed on NASDAQ. The stock currently trades at $348.47 with a market capitalization of $276.32B.
Key valuation metrics include a P/E ratio of 35.25, price-to-book ratio of 13.53, and EPS of $8.66. The company reports a profit margin of 27.8% and return on equity of 38.4%.
AMAT Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $276.32B |
| P/E Ratio | 35.25 |
| EPS | $8.66 |
| P/B Ratio | 13.53 |
| P/S Ratio | 9.79 |
| EV/EBITDA | 26.87 |
| Dividend Yield | 0.50% |
| Profit Margin | 27.8% |
| Return on Equity | 38.4% |
| Debt/Equity | 0.32 |
AMAT Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $14.61B | $2.71B |
| FY20 | $17.20B | $3.62B |
| FY21 | $23.06B | $5.89B |
| FY22 | $25.79B | $6.53B |
| FY23 | $26.52B | $6.86B |
| FY24 | $27.18B | $7.18B |
| FY25 | $28.37B | $7.00B |
Applied Materials Inc (AMAT) Valuation
Based on GoodMoat's DCF model, Applied Materials Inc has a fair value estimate of $315.48. At the current price of $348.47, the stock appears 10.5% overvalued relative to our intrinsic value estimate.
AMAT Quality Indicators
Applied Materials Inc maintains a profit margin of 27.8% and an operating margin of 29.2%. Return on equity stands at 38.4%. The current ratio is 2.61. Debt-to-equity ratio is 0.32.
About Applied Materials Inc
Applied Materials, Inc. is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future.
AMAT Free Cash Flow
Applied Materials Inc generated $5.70B in trailing twelve-month free cash flow, representing an FCF yield of 2.06%. This moderate FCF yield indicates reasonable cash generation.
AMAT Shares Outstanding
Applied Materials Inc has 0.79 billion shares outstanding at a share price of $348.47, giving it a market capitalization of $276.32B.
AMAT Recent Insider Trades
Recent insider transactions at Applied Materials Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| BRUNER JUDY | SELL | 2,500 | $979275.00 |
| Sanders Adam (Corp. Controller & CAO) | SELL | 534 | $202471.44 |
| BRUNER JUDY | SELL | 2,458 | $925412.42 |