Stock · AMAT · Technology
United States · Large Cap · listed since 1972 · Revenue 12 mo. $30.8B
Price as of 11/06/2026
Summary
49.1 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €5.1B (2025), it supports €56.8B. The remaining €190B of the market value assume it grows 20.5% a year for 10 years and not at all afterwards.
Required FCF growth per year
20.5%
no growth afterwards
Price to operating cash flow 31.7×, above its usual range.
Middle half of 20 quarters: 15.6× to 25.3×, median 19.9×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2025 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 10/26/2025, filed 12/12/2025. Open the report at the SEC
AGS sells transactional and subscription service products, spares and factory automation software. Customers buy them to improve the performance of the large, global installed base of semiconductor and other equipment.
AGS’s transactional and subscription service products, spares and factory automation software is purchased by customers to optimize the performance of our large, global installed base of semiconductor and other equipment.The company also makes products and serves customers in certain other industries, including equipment for the display industry.
We also manufacture products and serve customers in certain other industries, including manufacturing equipment for the display industry.The process control systems use optical and eBeam technologies to inspect and review chip structures during manufacturing, which helps improve chip yields.
Our process control systems employ optical and eBeam technologies that allow customers to inspect and review critical semiconductor architectures throughout the manufacturing process, helping improve chip yields.Semiconductor Systems sells to customers that serve three markets: foundry, logic and other; DRAM memory; and NAND flash memory.
Our Semiconductor Systems sales are to customers that serve the following markets: foundry, logic and other; dynamic random access memory (DRAM); and flash memory (NAND).The company's business is based on capital equipment investments by major semiconductor and other manufacturers, and customer demand can vary significantly.
Our business is based on capital equipment investments by major semiconductor and other manufacturers, and is subject to significant variability in customer demand for our products.Major competitive factors include technical capability and differentiation, productivity, cost-effectiveness and the ability to support a global customer base.
Significant competitive factors include technical capability and differentiation, productivity, cost-effectiveness and the ability to support a global customer base.Competitors range from small companies that compete in a single region, which may benefit from policies and regulations that favor domestic companies, to global, diversified companies.
Competitors range from small companies that compete in a single region, which may benefit from policies and regulations that favor domestic companies, to global, diversified companies, which operate in more complex global economic and regulatory environments.The company could face more competition from domestic equipment makers in China, driven by local government incentives and funding and by US export controls on certain technologies.
We could see increased competition from domestic equipment manufacturers in China resulting from local government incentives and funding as well as export controls established by the United States government to restrict the sale of certain technologies to customers in China.In fiscal 2025, two customers accounted for approximately 19% and 15% of net revenue, respectively.
During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of our net revenue.Getting export licenses may be difficult and time-consuming, and there is no assurance the company will receive them on time or at all.
Obtaining export licenses may be difficult and time-consuming, and there is no assurance we will be issued licenses on a timely basis or at all.Although the company makes reasonable efforts to have parts from several qualified suppliers, this is not always possible. So some key parts may come from only one qualified supplier or a limited group.
Although we make reasonable efforts to assure that parts are available from multiple qualified suppliers, this is not always possible. Accordingly, some key parts may be obtained from only a qualified single supplier or a limited group of qualified suppliers.In 2025 the Chinese government put export controls on rare earth minerals used in certain of the company's products, and may add more controls later.
For example, in 2025 the Chinese government implemented export controls on the export of rare earth minerals that are used in certain of our products and may implement additional controls in the future.AI is evolving rapidly, and the expected timing and amount of AI investments can change significantly. This makes demand for the company's AI-related products difficult to forecast.
AI is evolving rapidly and the expected timing and amount of investments related to AI can change significantly. As a result, it is difficult to accurately forecast demand for our products related to AI.Since the last quarter
Q2 → Q3 2026
5 more unchanged: Gross margin, EBIT margin, FCF margin, Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 34.28% | 14.60% | Rank 84 |
| Return on capital (Greenblatt) | 46.05% | 29.77% | Rank 62 |
| EBIT margin | 29.22% | 17.40% | Rank 79 |
| FCF margin | 20.09% | 18.54% | Rank 57 |
| Gross margin | 48.67% | 48.47% | Rank 50 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 4.39% | 12.70% | Rank 21 |
| Earnings growth, 3 years per year | 5.19% | 9.54% | Rank 38 |
| Earnings growth, 5 years per year | 17.18% | 14.07% | Rank 58 |
| Sustainable growth (ROE × retained earnings) | 7.97% | 2.87% | Rank 78 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 2.60% | 2.64% | Rank 48 |
| FCF yield | 2.07% | 3.06% | Rank 36 |
| EV/saleslower is better | 9.64 | 5.18 | Rank 29 |
| EV/EBITlower is better | 32.99 | 26.24 | Rank 37 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | 32.87% | −0.59% | Rank 81 |
| Share price, 6 months | −23.11% | −4.46% | Rank 29 |
| Share price, 3 months | −33.16% | −5.84% | Rank 9 |
| Distance from 52-week high | −53.98% | −33.23% | Rank 15 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 5.15% | 1.65% | Rank 37 |
| Change in share countlower is better | −3.12% | −0.17% | Rank 88 |
| Dividend streak in years | 20 | 8 | Rank 94 |
| Price reaction to results, market-adjusted | −4.98% | −1.57% | Rank 28 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 56.24% | 53.98% | Rank 58 |
| Net debt/EBITDAlower is better | −0.15 | −0.20 | Rank 49 |
| Debt to equitylower is better | 0.35 | 0.33 | Rank 49 |
| Volatility, 1 yearlower is better | 61.09% | 50.37% | Rank 34 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF, $B | Shares | Net debt |
|---|---|---|---|---|---|
| 2016 | 10.8 | 19.9% | 2.2 | 1.12B | −$81.0M |
| 2017 | 14.7 | 26.8% | 3.3 | 1.08B | $294.0M |
| 2018 | 16.7 | 26.9% | 3.2 | 1.03B | $1.9B |
| 2019 | 14.6 | 22.9% | 2.8 | 945M | $2.2B |
| 2020 | 17.2 | 25.4% | 3.4 | 923M | $97.0M |
| 2021 | 23.1 | 29.9% | 4.8 | 919M | $457.0M |
| 2022 | 25.8 | 30.2% | 4.6 | 877M | $3.8B |
| 2023 | 26.5 | 28.9% | 7.6 | 845M | −$133.0M |
| 2024 | 27.2 | 29.0% | 7.5 | 834M | −$1.4B |
| 2025 | 28.4 | 29.2% | 5.7 | 808M | −$191.0M |
4 of 7 StockScorer Score rules met · How the score is built
Applied Materials Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Applied Materials Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
4 of 7 rules met
6 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
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Selected fundamental metrics for Applied Materials Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 38.4 | 35.1 |
| P/B ratio | 13.2 | 5.5 |
| Return on equity (ROE) | 34.3% | 14.6% |
| Equity ratio | 56.2% | 54.0% |
| Debt-to-equity (D/E) | 0.35 | 0.33 |
| Dividend yield | 0.6% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| AMAT | Applied Materials Incthis page | |
| LRCX | Lam Research Corp | High7.3 |
| KLAC | KLA Corporation | Medium5.5 |
| 6857.T | Advantest Corp. | locked |
| 8035.T | Tokyo Electron Limited | locked |
| ASML.AS | ASML Holding N.V. | locked |
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