Applied Materials Inc (AMAT)
Information Technology · Semiconductor Materials & Equipment · US stock · S&P 500 component
$377.24
▲ +1.66 (0.44%)
Fair valueOvervalued
$294 −21.7% to fair value
$147fair band $250–$357$441
Day's range
$372.80 – $384.33
52-week range
$203.40 – $739.67
About Applied Materials Inc
Applied Materials supplies the machines, materials and services that chipmakers and display manufacturers use to produce their products. Its tools handle steps such as depositing thin films, etching patterns and inspecting wafers. The company earns money by selling equipment to semiconductor fabrication plants and then providing ongoing services, spare parts and upgrades to the installed base, so its sales follow the spending cycles of the chip industry.
Revenue over the last twelve months came to $30.8 billion, and sales grew by 3.2% a year on average across the past three years. Operating margin is 29.6% and return on invested capital is 33%. Net debt to EBITDA is -0.2 times, which means it holds more cash than debt. It pays a dividend with a yield of 0.5%. The X-Ray Score is 49 out of 100. These figures describe past results and the present financial position only.
Price chart
52-wk range $203.40 – $739.67Volume 6,907,465Daily, split-adjusted
Vitals
Market cap$301.8B
52-week range$203.40 – $739.67
Volume (last day)6,907,465
P/E (TTM)32.6
EBIT / EV yield3.1%
Free-cash-flow yield1.9%
Dividend yield0.5%
Revenue (TTM)$30.8B
Net income (TTM)$9.3B
Operating margin29.6%
Return on capital32.7%
Debt incl. leases$7.7B
Cash & securities$9.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$294middle half of models $274 – $328
Overvalued
−21.7% to fair value
Average of the 11 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $377
Undervalued < $250Fair $250 – $357Overvalued > $357
P/E multiple
$356
P/B multiple
$323
P/S multiple
$320
EV/EBITDA multiple
$344
EV/EBIT multiple
$301
EV/revenue multiple
$334
10-year DCF, EBITDA exit
$248
5-year DCF, EBITDA exit
$300
10-year DCF, revenue exit
$249
5-year DCF, revenue exit
$301
10-year DCF, growth exit · not used
$104
5-year DCF, growth exit · not used
$107
Dividend discount, stable · not used
$45
Dividend discount, multi-stage · not used
$76
Earnings power value
$161
Growth the price implies
28.1%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
24/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.1%
Free-cash-flow yield1.9%
Fair value vs price0.8×
Growth
Weak
30/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)3.2%
EPS growth (3y)5.2%
Growth consistency80%
Profitability
Fair
63/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital32.7%
Operating margin29.6%
Gross profitability35.0%
Financial health
Strong
73/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA-0.2×
Interest cover33.0×
Dividends
Fair
59/100
Dividend is typical for its sector.
See the numbers →
Dividend yield0.5%
Dividends vs free cash flow28%
Dividend growth16.6%
Quarterly results: last 6 quarters
+6.8%
Apr '25
+7.7%
Jul '25
-3.5%
Oct '25
-2.1%
Jan '26
+11.4%
Apr '26
+24.8%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $9.1B, diluted EPS $3.17.
Compare with peers
LRCX Lam Research Corp58 KLAC Kla Corp50 TER Teradyne, Inc47 Q Qnity Electronics, Inc...41Other Semiconductor Materials & Equipment companies by X-Ray Score.
SWOT analysis: Applied Materials Inc
Strengthsinside the company
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
- Operating profit covers interest 33x, so debt costs are a small drag.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- The price is 22% above our fair value estimate, so there is little room for disappointment.
- Earnings in Semiconductor Materials & Equipment follow the industry cycle, so margins and profits can swing from year to year.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare AMAT with peers and sector
Medians of 4 Semiconductor Materials & Equipment peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): LRCX 58, KLAC 50, TER 47, Q 41.
| Metric | AMAT | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 49 | 49 | 50 |
| Valuation | 24 | 36 | 52 |
| Growth | 30 | 36 | 54 |
| Profitability | 63 | 60 | 49 |
| Financial health | 73 | 68 | 49 |
| Dividends | 59 | 42 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
AMAT ranks #42 of 75 in Information Technology and #3 of 5 in Semiconductor Materials & Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for AMAT
Each factor is rated by where AMAT stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 8 Average · 8 Bad of 23
Growth: 0 · 1 · 2
Profitability: 4 · 1 · 0
Financial strength: 3 · 1 · 0
Valuation: 0 · 4 · 1
Cash flow: 0 · 1 · 3
Efficiency: 0 · 0 · 2
| Factor | AMAT | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.2% | Bad beats 28% | +9.7% | – | – |
| Revenue growth, last year | +4.4% | Bad beats 11% | +13.7% | +4.4% | ≈ In line |
| EPS growth, 3 years a year | +5.2% | Average beats 48% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 49.4% | Average beats 36% | 57.8% | 47.3% | ≈ In line |
| Operating margin | 29.6% | Good beats 67% | 20.3% | 29.2% | ≈ In line |
| Net margin | 30.1% | Good beats 79% | 17.8% | 25.5% | ▲ Better |
| Return on invested capital | 32.7% | Good beats 73% | 19.4% | – | – |
| Return on equity | 36.2% | Good beats 74% | 21.0% | 41.9% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | -0.2x | Good beats 80% | 0.8x | -0.2x | ≈ In line |
| Interest cover | 33.0x | Average beats 57% | 23.0x | 31.9x | ≈ In line |
| Current ratio | 2.42 | Good beats 74% | 1.57 | 2.54 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 32.4x | Average beats 55% | 33.6x | 21.3x | ▼ Worse |
| Price / book | 11.7x | Average beats 39% | 8.3x | 8.2x | ▼ Worse |
| Price / sales | 9.7x | Average beats 34% | 6.9x | 5.4x | ▼ Worse |
| EV / EBITDA | 30.9x | Average beats 39% | 24.7x | 17.2x | ▼ Worse |
| Free cash flow yield | 1.9% | Bad beats 26% | 3.4% | 4.8% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 18.2% | Bad beats 31% | 22.3% | 20.7% | ▼ Worse |
| Cash from operations / net income | 0.91 | Bad beats 12% | 1.39 | 1.14 | ▼ Worse |
| Free cash flow growth, 3 years a year | +7.3% | Average beats 35% | +15.4% | – | – |
| Accruals (lower is better) | +2.0% | Bad beats 10% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 2.4x | Bad beats 25% | 3.9x | 2.5x | ≈ In line |
| Days sales outstanding | 91 days | Bad beats 8% | 63 days | 71 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 6 Good · ● 5 Average · ● 5 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldBad
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 47/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $23.1B | $25.8B | $26.5B | $27.2B | $28.4B |
| Operating income | $6.9B | $7.8B | $7.7B | $7.9B | $8.3B |
| Net income | $5.9B | $6.5B | $6.9B | $7.2B | $7.0B |
| Operating cash flow | $5.4B | $5.4B | $8.7B | $8.7B | $8.0B |
| Operating margin | 29.9% | 30.2% | 28.9% | 28.9% | 29.2% |
| Free cash flow | $4.8B | $4.6B | $7.6B | $7.5B | $5.7B |
| Diluted EPS | $6.40 | $7.44 | $8.11 | $8.61 | $8.66 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
4 bullish · 0 neutral · 12 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 422.8 | Bearish |
| EMA 10 | 419.5 | Bearish |
| SMA 20 | 470.8 | Bearish |
| EMA 20 | 444.7 | Bearish |
| SMA 50 | 468.4 | Bearish |
| EMA 50 | 469.5 | Bearish |
| SMA 100 | 513.3 | Bearish |
| EMA 100 | 472.5 | Bearish |
| SMA 200 | 441.3 | Bearish |
| EMA 200 | 433.1 | Bearish |
Oscillators (daily)
| RSI (14) | 26.09 | Bullish |
| MACD (12, 26) | -25.77 | Bearish |
| Momentum (12) | -27.54 | Bearish |
| Stochastic %K (14) | 2.56 | Bullish |
| Williams %R (14) | -97.44 | Bullish |
| CCI (20) | -126.4 | Bullish |
Pivot points (classic, last session)
S3 360.4 | S2 366.6 | S1 371.9 | Pivot 378.1 | R1 383.4 | R2 389.7 | R3 395.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.98 USD
Yield on today's price
0.52%
Frequency
Quarterly
Next ex-dividend date
19 Nov 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.5300 |
| 0.5300 | |
| 0.5300 | |
| 0.4600 | |
| 0.4600 | |
| 0.4600 | |
| 0.4600 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.3200 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold AMAT
| ETF | Share of the fund |
|---|---|
| PSI Invesco Dynamic Semiconductors | 6.55% |
| SOXX iShares Semiconductor | 5.77% |
| SMH VanEck Semiconductor | 5.74% |
| XNTK SPDR Morgan Stanley Technology | 5.67% |
| RDVY First Trust Rising Dividend Achievers | 4.68% |
| FTXL First Trust Nasdaq Semiconductor | 4.21% |
| PWB Invesco Dynamic Large Cap Growth | 3.82% |
| CHPY YieldMax Semiconductor Portfolio Optio... | 3.77% |
The eight funds with the largest weight in AMAT among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
AMAT stock splits
AMAT has split its stock 6 times since 1992. The latest was a 2-for-1 split on 17 Apr 2002.
Full AMAT stock split history →AMAT SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.