# Applied Materials Inc. (AMAT) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $454.71, market value $360.9 billion.

## Valuation
- **P/E (trailing): 39.2×** (5-yr avg 19.1×, 3-yr avg 21.2×). Applied Materials Inc. trades at 39.2× trailing earnings, well above its own five-year average of 19.1×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 24.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 11.7×**. Each dollar of revenue is priced at 11.7×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 14.1×**. The shares trade at 14.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 37.2×**. Enterprise value is 37.2× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.6%** (5-yr avg 5.0%). Free cash flow equals 1.6% of the market value, below its five-year average of 5.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.6%**. The inverse of the P/E: 2.6% of the price is earned each year.

## Profitability
- **Gross margin: 49.4%**. Applied Materials Inc. keeps 49.4% of revenue after the direct cost of what it sells.
- **Operating margin: 29.6%**. 29.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 24.7%**. 24.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 34.3%**. 34.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 36.8%**. Return on all capital, debt included, is 36.8%: comfortably above what that capital costs.
- **Return on assets: 25.5%**. Each dollar of assets produces 25.5% of profit.

## Growth
- **Revenue growth (1 yr): 4.4%** (3-yr 3.2%/yr, 5-yr 10.5%/yr). Revenue grew 4.4% over the last year, against 10.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 0.6%** (3-yr 5.2%/yr, 5-yr 17.2%/yr). Earnings per share rose 0.6%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 7.3%/yr**. Free cash flow has compounded at 7.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.32**. Debt is 0.32 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Applied Materials Inc. holds more cash than debt.
- **Altman Z-score: 15.95**. A Z-score of 15.95 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.47%** ($1.98 per share, trailing). Applied Materials Inc. yields 0.47%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 20%** (27% of free cash flow). 20% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 15.4%/yr** (1-yr 17.1%). The dividend has compounded at 15.4% a year over five years, doubling roughly every 5 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (35 analysts). 35 analysts cover Applied Materials Inc.; the consensus is strong_buy, with an average price target of $640.31 (+41% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 188.6%** (YTD 77.4%, 3-mo 0.4%). The shares are up 188.6% over twelve months including dividends.
- **From 52-week high: -38.5%** (181.1% above the low). Trading 39% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 2.67** (volatility 59%). Beta of 2.67 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AMAT · Page: https://foliofundamentals.com/stocks/amat

Not investment advice.