AMATNEUTRAL

AMAT Return on Equity (ROE) Analysis

34.3%

Higher than 74% of Technology sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; Applied Materials' current ROE of 34.3% means it earns $0.343 in profit for every dollar of equity.

Sector Performance

74th percentile

AMAT

34.3%

Sector Median

8.7%

Sector Avg

-3.2%

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Deep Analysis

This is well above the technology sector median of 25.4%, placing the company in the 83rd percentile among its sector peers. The metric has been perfectly stable over the last eight quarters, with no change year-over-year (+0.0%) or quarter-over-quarter (+0.0%). A high ROE combined with a flat trend suggests consistent profitability without recent improvement or deterioration, which limits both upside opportunity and downside risk from this metric. This stability and above-average level support the overall NEUTRAL verdict, as the ROE indicates solid performance but no new catalyst for a stronger rating.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMAT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMAT's Return on Equity (ROE) compare to its sector?

AMAT's Return on Equity (ROE) of 34.3% compares to a Technology sector median of 8.7%, placing it in the 74th percentile.

Who are AMAT's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%), SMTC (-5.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.