StockCV
Applied Materials Inc logo

Applied Materials Inc

Semiconductors & Related Devices

$507.20
-0.47%
Market cap $403B

Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem.

It is a $403B technology company. Revenue grew 7.8% over the last year, it keeps 30¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 43.4× earnings — near the highest of its own history.

Location
Santa Clara, CA
Employees
36 500
Sector
Technology

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation10Growth63Profitability100Health75Quality87Moat95

Strong profitability, health, quality and moat; Valuation lags behind.

Valuation10
  • P/E vs own history95th pct · 0/25
  • FCF yield1.4% · 5/25
  • P/S13.0x · 5/25
  • EV/EBITDA41.6x · 0/25
Growth63
  • Revenue CAGR5.3% · 12/25
  • Net income CAGR4.4% · 6/25
  • EPS CAGR ~5Y17.2% · 20/25
  • Fwd implied growth66.2% · 25/25
Profitability100
  • ROIC38.0% · 25/25
  • ROE40.4% · 25/25
  • Net margin30.1% · 25/25
  • Operating margin29.6% · 25/25
Health75
  • Altman Zn/a · 0/25
  • Current ratio2.42 · 25/25
  • Interest coverage42.8x · 25/25
  • Net cash / debtNet cash · 25/25
Quality87
  • Piotroski F7/9 · 22/25
  • Beneish M-2.62 · 25/25
  • FCF conversion61% · 15/25
  • Margin stabilityσ 3.8% · 25/25
Moat95
  • ROIC >12% years10/10 yrs · 25/25
  • Median gross margin45.9% · 20/25
  • FCF-positive years10/10 yrs · 25/25
  • Worst-year net marginworst 15.9% · 25/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. 2026Product
    Applied Materials announced plans to invest $5 billion in India over the following decade under…
  2. FY2024Financial
    Best year on record
    $7.18B net income
  3. FY2020Financial
    Became debt-free
    cash now exceeds total debt
  4. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  5. FY2016Financial
    Revenue already above $10B
    $10.8B in first reported year
  6. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  7. Sep 24, 2013Acquisition
    Applied Materials then announced a planned merger with Tokyo Electron on September 24, 2013
  8. 2009Acquisition
    Applied Materials acquired Semitool Inc. in December 2009, and announced its acquisition of Varian Semiconductor in…
  9. 2008Acquisition
    Applied Materials purchased Baccini, an Italian company and designer of tools used in manufacturing…
  10. Jun 27, 2001Acquisition
    Applied Materials acquired Israeli company Oramir Semiconductor Equipment Ltd., a supplier of…
  11. 2000Acquisition
    Etec Systems, Inc. was purchased
  12. 1996Acquisition
    Applied Materials acquired two Israeli companies for an aggregate amount of $285 million: Opal…
  13. 1987Product
    Applied introduced a chemical vapor deposition (CVD) machine called the Precision 5000
  14. 1984Milestone
    Applied Materials became the first U.S. semiconductor equipment manufacturer to open its own technology…
  15. 1972IPO
    McNeilly and others, Applied Materials went public in 1972 on the National Association of Securities Dealers…

Achievements

Verifiable track record, straight from the reported numbers.

#15 largest of 220 Technology companies by market cap
$10 000 invested in 2021 would be worth ~$37 065 today — price return only
$28.4B revenue in FY2025
Revenue up 7.8% year over year
Profitable 10 years in a row
Positive free cash flow 10 years in a row
36 500 employees
ROIC of 38.0%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (49.4%)
  • Strongly profitable — 30.1% net margin
  • Strong cash conversion — FCF is 18.2% of revenue
  • Net cash position after subtracting debt from cash
  • Interest covered 42.8× by operating earnings

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed
  • Revenue growing+7.8% YoY
  • Profitable$9.27B TTM
  • Profit growing+5.2% YoY
  • Generates cash$5.62B TTM
  • Debt under controlmore cash than debt
  • Established company$403B market cap
  • Not printing shares-12.5% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stablehealth score 50/100
  • Pays a dividendyield 0.38%
  • Valuation not extremeP/E 43.4
Peer comparisonApplied Materials Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
AMAT this company$402.5B43.4+7.8%30.1%Mixed
NVDA Nvidia Corp$5.5T28.6+83.4%63.7%Mixed
AAPL Apple Inc.$4.9T38.1+14.2%27.6%Strong
GOOGL Alphabet Inc.$4.3T17.6+20.1%54.8%Mixed
MSFT Microsoft Corp$4.0T29.7+17.8%40.3%Strong
SPCX Space Exploration Technologies Corp.$2.1T—+33.2%-34.0%Strained
META Meta Platforms, Inc.$1.8T26.9+27.7%29.8%Mixed

Head-to-head: AMAT vs NVDA · AMAT vs AAPL · AMAT vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 12Buy 27Hold 6

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of AMAT on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $507.20 · market cap $403B.