AMAT
Applied Materials, Inc.
$409.29
-4.82% 2026-10-16
Information TechnologyS&P 500
AMATSPY
1W
-19.3%
1M
-1.5%
3M
-22.6%
6M
+3.3%
YTD
+59.8%
1Y
+80.7%
Grades vs sector
Momentum87th pct in sectorA-
Momentum
87th pct in sector
12-1 return: +120.6%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Growth68th pct in sectorB
Growth
68th pct in sector
Revenue growth (YoY): +24.8%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Value33rd pct in sectorC-
Value
33rd pct in sector
Forward E/P: 4.5% · EBITDA/EV: 3.1%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Profitability87th pct in sectorA-
Profitability
87th pct in sector
Profit margin: +30.1% · Return on equity: +41.1%
Percentile within its GICS sector across the S&P 1500.
Percentile within its GICS sector across the S&P 1500.
Revisionsno data–
Revisions
no data
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.
30-day change in analysts' current-year EPS estimate; graded across covered stocks.
Our models
Not held by any of our 3 live models right now.
Momentum Top 15
rank 17 of 499 · 12-1 momentum % 125.1
Quality Growthrank 37 of 360 · Composite (0-1) 0.7
Momentum Blendnot in the current book
Key stats
Market cap$324.8B
P/E (trailing)35.3
P/E (forward)22.2
52-week range203.40 – 739.67
Revenue growth (YoY, latest qtr)+24.8%
Dividend yield0.52%
Analyst consensusStrong Buy (36)
Mean price target$627.83 (+53%)
Valuation & fundamentals
Bottom line
Leans expensive
Model read-out from the numbers below, not advice. Score -2 (DCF counts double).
▼DCF (base case)below the price by 60%
▼Forward P/E vs sector22.2x vs median 16.9x
•Piotroski F-score6/9
▲Altman Z14.7 (safe)
▲Net debt / EBITDA-0.2x
▲Analyst target+53% (36 analysts)
Discounted cash flow
CyclicalValued on average-cycle margins
Semiconductor Materials & Equipment profits swing with the business cycle, so one year's cash flow can be far above or below normal. Instead of the last 12 months' free cash flow (5.6B, a 18% margin), the DCF and reverse DCF use the average free-cash-flow margin over FY2016–FY2025 (10 years: 21.7%) times current revenue = 6.7B. On trailing cash flow the base case would be $138; on mid-cycle cash flow it is $164. Glossary
Bear
$108
-74%
growth 8% · disc. 13.2% · term. 2.0%
Base
$164
-60%
growth 14% · disc. 12.2% · term. 2.5%
Bull
$232
-43%
growth 18% · disc. 11.2% · term. 3.0%
Starting cash flow is mid-cycle: 21.7% average margin × current revenue = 6.7B (last 12 months: 5.6B at a 18% margin). On trailing cash flow the base case would be $138.
Reverse DCFfor context, not a signal
A normal DCF guesses future cash flows and works out a price. A reverse DCF runs it backwards: it starts from today's price and asks how fast free cash flow would have to grow to justify it. It tells you what the market is assuming, not whether the stock is cheap or expensive, and it is not a buy or sell signal. Glossary
Today's price assumes free cash flow grows about 24% a year for 10 years.
Implied
+24%/yr
FCF, last 3 yrs
+7%/yr
FCF, last 5 yrs
+11%/yr
Revenue, last 3 yrs
+3%/yr
Revenue, last 5 yrs
+11%/yr
Same inputs as the DCF above: mid-cycle free cash flow 6.7B, 12.2% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–
Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-07-26). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.59 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.
Multiples vs Information Technology
P/E (trailing)
cheaper
sector median 35.9× · 49th pct
35.3×cheaper
Forward P/E
pricier
sector median 16.9× · 63rd pct
22.2×pricier
EV / EBITDA
pricier
sector median 20.8× · 74th pct
33.4×pricier
Price / sales
pricier
sector median 4.6× · 80th pct
10.5×pricier
Price / book
pricier
sector median 5.1× · 80th pct
12.7×pricier
FCF yield
pricier
sector median 3.5% · 24th pct
1.7%pricier
Forward EPS $18.46 vs trailing $11.59 (+59% expected growth). Forward P/E uses analysts' next-12-month estimate.
Quality & financial health
Gross margin
49.4%
Operating margin
29.6%
FCF margin
18.2%
Net margin
30.1%
Return on equity
36.2%
Return on invested capital
32.7%
Net debt / EBITDA
-0.2×
Current ratio
2.4×
Interest cover
33.0×
Cash conversion (OCF/NI)
0.9×
Piotroski F-score 6/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✓ Current ratio improved✓ No share dilution✓ Gross margin improved✗ Asset turnover improved
Altman Z-score 14.7 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.
Analysts
Mean target
$628
+53%
Analysts
36
Strong Buy
Range
–
low – high
Annual history
| FY | Revenue | Net income | Free cash flow |
|---|---|---|---|
| 2025 | $28.4B | $7.0B | $5.7B |
| 2024 | $27.2B | $7.2B | $7.5B |
| 2023 | $26.5B | $6.9B | $7.6B |
| 2022 | $25.8B | $6.5B | $4.6B |
| 2021 | $23.1B | $5.9B | $4.8B |
| 2020 | $17.2B | $3.6B | $3.4B |
From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +3.2%.
Earnings
Next report: 2026-11-12 · during market · EPS est 4.06
EstimateActual (beat)Actual (miss)
| Report | EPS est | Actual | Surprise |
|---|---|---|---|
| 2026-08-13 | 3.39 | 3.50 | +3.1% |
| 2026-05-14 | 2.69 | 2.86 | +6.5% |
| 2026-02-12 | 2.21 | 2.38 | +7.9% |
| 2025-11-13 | 2.09 | 2.17 | +3.6% |
| 2025-08-14 | 2.36 | 2.48 | +5.1% |
| 2025-05-15 | 2.31 | 2.39 | +3.5% |
| 2025-02-13 | 2.30 | 2.38 | +3.7% |
| 2024-11-14 | 2.19 | 2.32 | +5.7% |
Quarterly revenue
| Quarter | Revenue | YoY |
|---|---|---|
| 2026-07-31 | $9.1B | +24.8% |
| 2026-04-30 | $7.9B | – |
| 2026-01-31 | $7.0B | – |
| 2025-10-31 | $6.8B | – |
| 2025-07-31 | $7.3B | – |
Analyst actions
Needham
PT $580
2026-10-16 · main
Buy → BuyPT $580
Evercore ISI Group
PT $590
2026-10-15 · main
Outperform → OutperformPT $590
RBC Capital
PT $600
2026-10-14 · reit
Outperform → OutperformPT $600
Morgan Stanley
PT $563
2026-09-28 · main
Equal-Weight → Equal-WeightPT $563
UBS
PT $695
2026-09-01 · main
Buy → BuyPT $695
Mizuho
PT $590
2026-08-25 · main
Outperform → OutperformPT $590
Recent dividends
2026-08-20: $0.530 · 2026-05-21: $0.530 · 2026-02-19: $0.460 · 2025-11-20: $0.460 · 2025-08-21: $0.460 · 2025-05-22: $0.460 · 2025-02-20: $0.400 · 2024-11-21: $0.400
Insider trades
Sanders Adam
$394.8K
Corp. Controller & CAO · 2026-10-02
SELL$394.8K
Bruner Judy
$465.0K
Director · 2026-09-08
SELL$465.0K
Hill Brice
$3.6M
SVP, CFO · 2026-08-25
SELL$3.6M
None
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None · None
SELL–
None
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None · None
SELL–
News
Digital Realty Trust Takes Over #39 Spot From Applied Materials
Nasdaq · 12h ago
TSMC’s Profit Soars 69%, but Can its Next Chip Breakthrough Justify the Valuation?
Insider Monkey · 15h ago
Applied Materials (AMAT) Sees $58.8 Million in Net ETF Selling on Oct. 15
GuruFocus.com · 17h ago
What Is Applied Materials’ (AMAT) Economic Moat, and Is It Widening or Narrowing?
Insider Monkey · Oct 18
Chip toolmakers can’t catch a break, even as TSMC spends more
TheStreet · Oct 18
3 Quality Stocks With ROE Over 30%
Simply Wall St. · Oct 18
Lam Research vs. Applied Materials: Which Buybacks Are Better Covered by Cash?
Insider Monkey · Oct 17
Lam Research vs. Applied Materials: How Much Protection Does the Installed Base Offer?
Insider Monkey · Oct 17
Chip Stocks Just Fell 8 Days in a Row, Their Longest Losing Streak Since 2008
24/7 Wall St. · Oct 17
Applied Materials (AMAT) Opened Its $5 Billion EPIC Center
Simply Wall St. · Oct 16
Stats refreshed 2026-10-18 22:39:29 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now
coteau
Coteau Systematic StrategiesSystematic equity research and model portfolios.Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.