Applied Materials, Inc.

Rank #210Hypergrowth

AMAT · Nasdaq · Technology

Applied Materials, Inc. (AMAT) — Rank #210 by gross profitability (GP/assets 0.32) · ROE 27.3% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000006951 · all metrics point-in-time as of the filing date.

About

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.

Industry: Semiconductor Equipment & Materials
Sector: Technology
State: DC
Filer Category: Large accelerated filer
Fiscal Year End: October 26
Website: appliedmaterials.com

Price History

AMAT+223.9% · +26.5% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$331.56B

P/E (annual)

48.2

P/S (annual)

11.7

P/B

12.9

P/OCF (annual)

41.7

Shareholder Yield

21.7%

Employees

38,900

Industry

Semiconductor Equipment & Materials

Exchange

Nasdaq

Signal Flags

4 green1 yellow

Revenue growth acceleratingGrowth rate increasing year over year

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak

Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass

GP / assets

0.32

Return on equity

27.3%

Gross margin trend

PASS

Safety

1/1 pass

Balance-sheet safety

PASS

Debt / equity

0.70

Current ratio

2.42×

Net cash

$6.76B

Cash Flow

2/3 pass

Positive FCF

PASS

Cash-backed earnings

WARN

Accruals healthy

PASS

SBC / revenue

2.4%

Growth

2/2 pass

Revenue growth

69.8%

Piotroski F-Score

7 / 9

Share dilution

-21.2%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

22.5%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -21.2% — per-share value needs a total required return of 1.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 18.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

17.4%

r = 10% (base)

22.5%

r = 12%

27.0%

Net debt / market cap: -2.0%

Base FCF: $5.7B3Y mean FCF: $3B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

22.8xExpensive

10.4xmed 20.9x22.8x

P / S

Price / revenue per share

5.8xExpensive

2.0xmed 3.5x5.8x

P / B

Price / book value per share

11.0xExpensive

2.4xmed 5.1x11.0x

P / GP

Price / gross profit per share

12.3xExpensive

4.4xmed 8.6x12.5x

P / FCF

Price / free cash flow per share

28.1xExpensive

10.6xmed 18.2x211.7x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin47.3% now vs 28.5%–47.3% 10yr range

1.6σ above average

Net margin25.5% now vs -6.1%–25.5% 10yr range

1.7σ above average

Disclosure regression check

A previously-disclosed line item is no longer reported. Worth checking the filing for why.

Interest expenseCost structure

last seen FY2020

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.32

Primary signal (Novy-Marx).

9th of 17 SIC 3674 peers

Return on equity

27.3%

Gross margin

48.7%

12th of 17 SIC 3674 peers

Revenue growth (YoY)

69.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2018	2019	2020	2021
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

—

Revenue CAGR (5Y)

10.5%

Earnings CAGR (3Y)

2.4%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.70

11th of 16 SIC 3674 peers (best = lowest)

Current ratio

2.42×

13th of 17 SIC 3674 peers

Quick ratio

1.63×

Net cash

$6.76B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$5.70B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.19

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.4%

Stock-based comp intensity.

Dividend safety

Composite score

4.0 / 5

Strong

Payout ratio

19.8%5/5 Strong

FCF coverage

4.12×5/5 Strong

Dividend growth streak

8 yr4/5 Strong

Balance-sheet health

D/E 0.70 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

2016-2018

2019

2020

2021

20162021

Capital Return

Decline

Value

Hypergrowth

View full financial statements →