Stock Analysis
Applied Materials IncAMAT
P/E 35.05×· 5Y range 9.89–67.90×· top 13% of history
Sector: Technology · Industry: Semiconductors & Related Devices
AnalystsStrong Buy45 analystsP/E 35.1× sits at the 87th percentile of its 5.0978781656399725-year history.
Cash covers 130% of debt · Q1 2026.
PMP Verdict
High quality, but expensive
Strengths
- Profitability100
- Financial Health100
Risks
- Valuation15
Excellent business. Weak entry price.
Market context
-4.8% today· Z 1.7σ
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 15.7 — safe-zone balance sheet
- ✓ROE 42.7% — efficient capital deployment
- ✓Interest coverage 32.9× — debt well covered
What's happening with AMAT
Profile
Strong profitability, financial health, moat and earnings quality; valuation lags behind.
How is each axis scored?
- Valuation15/100 · Weak
- P/E vs own history (87th pct)0/25
- FCF yield (1.7%)5/25
- P/S (10.5x)5/25
- EV/EBIT (35.3x)5/25
- Growth55/100 · Moderate
- Revenue CAGR (5.3%)12/25
- Net income CAGR (4.4%)6/25
- EPS CAGR 5Y (7.8%)12/25
- Fwd implied growth (34.1%)25/25
- Profitability100/100 · Strong
- ROIC (36.5%)25/25
- ROE (42.7%)25/25
- Net margin (30.1%)25/25
- Operating margin (29.6%)25/25
- Financial Health100/100 · Strong
- Altman Z (15.72)25/25
- Current ratio (2.71)25/25
- Interest coverage (32.9x)25/25
- Net cash / debt (Net cash)25/25
- Quality87/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.62)25/25
- FCF conversion (61%)15/25
- Margin stability (σ 3.8%)25/25
- Moat95/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (45.9%)20/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 15.9%)25/25
Risk Flags
- ⚠P/E 35.1× at top 13% of 5-year history
About Applied Materials Inc
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. Show more
It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
Headquarters: SANTA CLARA, CA · Employees: 36,500 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
15EP/E (TTM)35.0xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 9.9x–67.9x · 87th pct
P/FCF63.0xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.7%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.9%–7.5% · 9th pct
P/S (TTM)10.53xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 2.6x–19.9x · 89th pct
EV/EBIT35.3xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 8.7x–69.4x · 88th pct
EV/Sales11.5xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E26.1xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio14.95xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.20B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.43%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio16.4%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC36.5%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE42.7%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA23.5%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin30.1%A
Grade A: HighNet Income / Revenue
Operating Margin29.6%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin49.4%C
Grade C: AverageGross Profit / Revenue
FCF Margin18.2%A
Grade A: HighFCF / Revenue
True FCF Margin16.0%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
55CRevenue CAGR5.3%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR4.4%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)7.8%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth34.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-14.0%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income7.6%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue2.3%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score15.72A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.71xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.72xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage32.9xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.30xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.30xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
87APiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.62A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion60.7%C
Grade C: AverageFCF / Net Income
Margin Stability3.8%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue9.0%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.78xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Sanders Adam Filed | Sanders Adam | SellOpen market sale | -725 | |
Sanders Adam Filed | Sanders Adam | Tax withholding | -269 | |
Deane Timothy M Filed | Deane Timothy M | Tax withholding | -2644 | |
BRUNER JUDY Filed | BRUNER JUDY | SellOpen market sale | -1000 | |
Palkhiwala Akash J. Filed | Palkhiwala Akash J. | Grant / award | +279 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Hill Brice Filed | Hill Brice | SellOpen market sale | -7500 | |
Sanders Adam Filed | Sanders Adam | Tax withholding | -125 | |
DICKERSON GARY E Filed | DICKERSON GARY E | SellOpen market sale | -30 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
95A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)45.9%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor15.9%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$11.68
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$11.63
Cash & short-term investments per share (Finnhub)
Book Value / Share$32.29
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$6.55B
Total debt obligations (short + long term)
Cash & Equiv.$8.51B
Cash and short-term investments
Net Debt$-1.96BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$21.72B
Shareholders' equity (book value)
Asset / Liability2.36xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$324.58B
Current Market Capitalization
Beta1.63C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jul 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Applied Materials Inc (AMAT)
AMAT is down 4.82% at the last close. Applied Materials Inc meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 15.72 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.62 suggests a low likelihood of earnings manipulation.
- Applied Materials Inc converts about 18% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 15/100, AMAT trades at a premium to its historical multiples (P/E 35.0).
- Return on equity of 42.7% is well above the market average.
See how AMAT ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AMAT moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | After-hours | 438.46 | -5.55% | -2.13 |
| Oct 13 | Regular | 463.49 | -6.84% | -3.22 |
| Oct 13 | After-hours | 462.80 | -6.98% | -3.28 |
| Sep 18 | Regular | 438.43 | +5.04% | 2.30 |
Frequently Asked Questions about AMAT
What is the current Applied Materials Inc (AMAT) stock price?
AMAT is trading at $409.29 at the last market close, down 4.82% on the session. PreMarketPrice tracks AMAT pre-market, intraday and after-hours prices.
Is AMAT stock a buy right now?
PreMarketPrice's quantitative model rates Applied Materials Inc's financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AMAT stock overvalued?
Applied Materials Inc trades at a trailing P/E of 35.0 and our valuation score rates it 15/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Applied Materials Inc report earnings?
No confirmed earnings date is currently scheduled for AMAT. The Earnings section lists recent reports and updates as dates are announced.
What sector does Applied Materials Inc operate in?
Applied Materials Inc operates in the Technology sector, within the Semiconductors & Related Devices industry. The Related Stocks section lists sector peers for comparison.
What does Applied Materials Inc do?
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world.
About Applied Materials Inc (AMAT) Stock
Applied Materials Inc (AMAT) is a US-listed stock operating in the Technology sector, specifically the Semiconductors & Related Devices industry. As of the latest update, Applied Materials Inc is trading at $409.29, down 4.82% on the day with a market capitalization of $324.6 billion. The financial health score for AMAT is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AMAT stock.
AMAT Stock Analysis & Key Metrics
On PreMarketPrice, you can track Applied Materials Inc (AMAT) across multiple dimensions:
- Pre-market price & movement: Real-time AMAT stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AMAT with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Applied Materials Inc across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AMAT.
- Sector peers: Compare AMAT against 6 other technology stocks on key financial metrics.
Is AMAT a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Applied Materials Inc (AMAT) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Applied Materials Inc (AMAT) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.