AMATAMAT
US • TECHNOLOGY
$723.00
P/E
67.95
PEG
2.03
FCF Yield
1.1%
Rev Growth YoY
+11.4% YoY
Gross Margin
49.0%
Health Score
8/10
D/E Ratio
0.32
Confidence
MEDIUM
Business Snapshot
Applied Materials (AMAT) is a market leader in semiconductor equipment and materials, providing wafer fabrication equipment and services used in the production of advanced chips. It operates within the highly cyclical semiconductor equipment industry, where it holds a dominant position alongside a few other large players. As a mega-cap company with a market capitalisation of $497.69B and TTM revenue of $29.02B, it exhibits significant financial scale and global operational reach. A key defining characteristic is its deep integration into the technology roadmaps of leading chipmakers, creating high customer switching costs that provide a competitive moat against smaller rivals.
Financial Health
Gross margin stands at a healthy 49.0%, while the net margin of 29.3% indicates strong operational efficiency and profitability, though prior-year margin comparisons are not available to assess the trend. The balance sheet is conservative, with a Debt/Equity ratio of just 0.32x and a robust Current Ratio of 2.61x, providing ample liquidity and financial flexibility...
Risk Assessment
- VALUATION — P/E ratio of 67.95x is over 3x the sector average of 22x, implying extreme optimism for future growth.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — 9 insider sells versus 0 buys over the last 90 days signal a bearish view from company executives.
- ANALYST PRICE TARGET — The average analyst price target of $551.91 points to a -23.7% downside from the current price of $723.0.
- DCF DIVERGENCE — The Python DCF estimate of $115.42 implies the stock is trading at a massive premium to estimated intrinsic value, though the model carries high sensitivity to terminal growth....
Gross margin stands at a healthy 49.0%, while the net margin of 29.3% indicates strong operational efficiency and profitability, though prior-year margin comparisons are not available to assess the trend. The balance sheet is conservative, with a Debt/Equity ratio of just 0.32x and a robust Current Ratio of 2.61x, providing ample liquidity and financial flexibility. Free cash flow is strongly positive at $5.56B, contributing to a modest FCF yield of 1.1% that reflects the high valuation multiple on the stock. Overall, the company displays outstanding financial health, with strong margins, minimal leverage, and consistent cash generation that supports substantial reinvestment in R&D, capital returns to shareholders, and resilience through industry cycles.
- VALUATION — P/E ratio of 67.95x is over 3x the sector average of 22x, implying extreme optimism for future growth. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — 9 insider sells versus 0 buys over the last 90 days signal a bearish view from company executives. - ANALYST PRICE TARGET — The average analyst price target of $551.91 points to a -23.7% downside from the current price of $723.0. - DCF DIVERGENCE — The Python DCF estimate of $115.42 implies the stock is trading at a massive premium to estimated intrinsic value, though the model carries high sensitivity to terminal growth.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives