AMAT — Applied Materials, Inc. $723.00

Generated 2026-06-30 21:48

Quality Scorecard Transitional

B79/100
Pricing power (gross margin) 49% Gross margin 49% — wide margins, likely pricing power
Return on equity 40% ROE 40% — high returns on capital
Leverage (net debt / EBITDA) net cash Net cash — $1.0B more cash than debt
Interest coverage 31x EBIT covers interest 31x — comfortably covered
Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
Earnings growth (net income YoY) -2% Net income -2% YoY — earnings declining
Cash conversion (CFO/NI) 114% Operating cash ÷ net income 114% — earnings convert to cash
Operating margin trend improving Operating margin improving
🟡 Revenue growth 11% Revenue +11% — moderate growth
🟡 Growth trajectory holding steady YoY +4% vs +3% prior 2-yr avg — holding steady
Free cash flow margin 20% FCF margin 20% — strong cash generation
🟡 Returns capital to shareholders yes no dividend; shares -2.4%/yr

Transitional-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

63/100
Quality ×40%79
Trajectory ×30%75
Valuation ×30%30

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$521.02$795.30
Price $723.00Analyst $578.91 (-20%)

Analyst: 35 analysts. MarketGist fair = analyst consensus only (no DCF — financial, or no free-cash-flow data). Not financial advice.

Key Trends (6-yr)

GAAP EPS
▲ +0.6% YoY
Sales
▲ +4.4% YoY
Shares Outstanding
▼ -3.1% YoY

Company Overview

Basic Information

Company Name: Applied Materials, Inc.
Symbol: AMAT
Exchange: NMS
Sector: Technology
Industry: Semiconductor Equipment & Materials

Company Details

Country: United States
City: Santa Clara
Employees: 36,400
Market Cap: $574.03B

Business Description

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

Key Metrics

Price & Valuation

Current Price
$723.00
Market Cap
$574.03B
P/E Ratio
68.02
Forward P/E
44.07
PEG Ratio
2.08
Price to Book
24.01

Profitability

Profit Margin: 29.31%
Operating Margin: 31.90%
Gross Margin: 48.96%
Return on Equity (ROE): 39.69%
Return on Assets (ROA): 14.86%
Revenue Growth: 11.40%

Financial Health

Current Ratio: 2.51
Quick Ratio: 1.62
Debt to Equity: 30.40
Total Debt: $7.27B
Total Cash: $8.24B
Beta: 1.67

Trading & Analyst Info

52-Week Range

52-Week High: $739.67
52-Week Low: $154.47
50-Day Average: $474.30
200-Day Average: $332.01

Analyst Recommendations

Recommendation: STRONG_BUY
Target Mean Price: $578.91
Target High: $900.00
Target Low: $358.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟢 94/100

Worth buying

Quality grade B; 5 improving / 2 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 49% — wide margins, likely pricing power
➕ Return on equity: ROE 40% — high returns on capital
➕ Leverage (net debt / EBITDA): Net cash — $1.0B more cash than debt
➕ Interest coverage: EBIT covers interest 31x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➖ Earnings growth (net income YoY): Net income -2% YoY — earnings declining
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 114% — earnings convert to cash
➕ Operating margin trend: Operating margin improving
➕ Free cash flow margin: FCF margin 20% — strong cash generation
➕ Revenue +11.4% YoY
➕ Net income +31.3% YoY
➕ Operating margin +1.3 pts YoY
➖ Free cash flow -80.2% YoY
➕ Cash +2.1% YoY
➖ Debt +9.0% YoY
➕ Shares outstanding -1.1% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-10-312024-10-312023-10-312022-10-312021-10-31
Tax Effect Of Unusual Items$-44.34M$0.00$0.00$564.00KN/A
Tax Rate For Calcs$0.24$0.12$0.11$0.14N/A
Normalized EBITDA$10.16B$8.79B$8.47B$8.27BN/A
Total Unusual Items$-181.00M$0.00$0.00$4.00MN/A
Total Unusual Items Excluding Goodwill$-181.00M$0.00$0.00$4.00MN/A
Net Income From Continuing Operation Net Minority Interest$7.00B$7.18B$6.86B$6.53BN/A
Reconciled Depreciation$435.00M$392.00M$515.00M$444.00MN/A
Reconciled Cost Of Revenue$14.56B$14.28B$14.13B$13.79BN/A
EBITDA$9.97B$8.79B$8.47B$8.27BN/A
EBIT$9.54B$8.40B$7.95B$7.83BN/A
Net Interest Income$982.00M$285.00M$62.00M$-189.00MN/A
Interest Expense$269.00M$247.00M$238.00M$228.00MN/A
Interest Income$1.25B$532.00M$300.00M$39.00MN/A
Normalized Income$7.13B$7.18B$6.86B$6.52BN/A
Net Income From Continuing And Discontinued Operation$7.00B$7.18B$6.86B$6.53BN/A

Showing 15 of 46 rows

Balance Sheet (Annual)

Item2025-10-312024-10-312023-10-312022-10-312021-10-31
Treasury Shares Number$1.21B$1.21B$1.19B$1.17BN/A
Ordinary Shares Number$793.00M$818.00M$833.00M$844.00MN/A
Share Issued$2.00B$2.03B$2.02B$2.02BN/A
Net DebtN/AN/AN/A$3.46B$457.00M
Total Debt$7.05B$6.61B$6.00B$5.83BN/A
Tangible Book Value$16.48B$15.02B$12.32B$8.15BN/A
Invested Capital$26.97B$25.26B$21.91B$17.65BN/A
Working Capital$12.88B$12.75B$11.78B$8.55BN/A
Net Tangible Assets$16.48B$15.02B$12.32B$8.15BN/A
Capital Lease Obligations$495.00M$346.00M$438.00M$372.00MN/A
Common Stock Equity$20.41B$19.00B$16.35B$12.19BN/A
Total Capitalization$26.87B$24.46B$21.81B$17.65BN/A
Total Equity Gross Minority Interest$20.41B$19.00B$16.35B$12.19BN/A
Stockholders Equity$20.41B$19.00B$16.35B$12.19BN/A
Gains Losses Not Affecting Retained Earnings$-110.00M$-168.00M$-217.00M$-202.00MN/A

Showing 15 of 88 rows

Cash Flow Statement (Annual)

Item2025-10-312024-10-312023-10-312022-10-312021-10-31
Free Cash Flow$5.70B$7.49B$7.59B$4.61BN/A
Repurchase Of Capital Stock$-4.89B$-3.82B$-2.19B$-6.10BN/A
Repayment Of Debt$-1.20B$-502.00M$-907.00M$0.00N/A
Issuance Of Debt$1.49B$1.09B$991.00M$0.00N/A
Issuance Of Capital Stock$261.00M$243.00M$227.00M$199.00MN/A
Capital Expenditure$-2.26B$-1.19B$-1.11B$-787.00MN/A
Interest Paid Supplemental Data$239.00M$205.00M$205.00M$205.00MN/A
Income Tax Paid Supplemental Data$1.50B$957.00M$1.01B$1.87BN/A
End Cash Position$7.31B$8.11B$6.23B$2.10BN/A
Beginning Cash Position$8.11B$6.23B$2.10B$5.10BN/A
Changes In Cash$-801.00M$1.88B$4.13B$-3.00BN/A
Financing Cash Flow$-5.98B$-4.47B$-3.03B$-7.04BN/A
Cash Flow From Continuing Financing Activities$-5.98B$-4.47B$-3.03B$-7.04BN/A
Net Other Financing Charges$-251.00M$-291.00M$-179.00M$-266.00MN/A
Cash Dividends Paid$-1.38B$-1.19B$-975.00M$-873.00MN/A

Showing 15 of 62 rows

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