APPLIED MATERIALS INC /DE (AMAT) Factsheet

APPLIED MATERIALS INC /DE (AMAT) Stock Analysis

Analysis from 10-K filed 2025-12-12. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.6%. FCF margin 18.4%. D/E 0.3x. Source: 10-K filed 2025-12-12.

Metric Value Context
ROIC 24.6% Above industry average
FCF Margin 18.4% Strong cash generation
Debt/Equity 0.3x Conservative leverage

ROIC 24.6% — Top 10% of sector peers. FCF margin 18.4% — Top 50%.

Explore APPLIED MATERIALS INC /DE: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AMAT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.


Profitability: APPLIED MATERIALS INC /DE earns 24.6% ROIC, Top 10% in Technology

ROIC TTM 24.6%, sector median 3.6%, Top 10%. DuPont: NOPAT margin 23.4% × asset turnover 0.8x. Gross margin 49.0%. Operating margin 28.6%. Source: 10-K filed 2025-12-12.

Metric AMAT Rating Context
Return on Invested Capital (ROIC) 24.6% Excellent Above sector median of 3.6%
Return on Equity (ROE) 41.0% Excellent Efficient use of shareholder equity
Gross Margin 49.0% Good Strong pricing power
Operating Margin 28.6% Excellent Efficient operations

Cash Flow: APPLIED MATERIALS INC /DE generates $5.3B FCF at 18.4% margin, positive NaN/8 quarters

FCF TTM $5.3B. FCF margin 18.4%, Top 50%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2025-12-12.

Metric AMAT Rating Context
Free Cash Flow Margin 18.4% Good Excellent cash conversion
Free Cash Flow (TTM) $5.3B Good Positive cash generation
OCF/Net Income 0.9x Good Potential accrual concerns
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: APPLIED MATERIALS INC /DE at 0.3x leverage

Debt/Equity 0.3x. Net cash $587.0M. Source: 10-K filed 2025-12-12.

Metric AMAT Rating Context
Debt to Equity 0.3x Good Conservative capital structure
Net Cash Position $587.0M Excellent Net cash positive

Valuation: APPLIED MATERIALS INC /DE trades at 39.0x earnings

P/E 39.0x. EV/Sales 11.4x. FCF yield 1.6%. Dividend yield 0.5%. Source: 10-K filed 2025-12-12.

Metric AMAT Rating Context
P/E Ratio 39.0x Adequate Premium valuation
EV/Sales 11.4x Warning Growth premium priced in
FCF Yield 1.6% Warning Lower cash yield
Dividend Yield 0.5% Adequate Growth focus over income

Capital Allocation: APPLIED MATERIALS INC /DE returns 1.3% shareholder yield

Total shareholder yield 1.3% (div 0.5% + buyback 0.8%). Capital returned $4.1B TTM. Source: 10-K filed 2025-12-12.

Metric AMAT Rating Context
Total Shareholder Yield 1.3% Adequate Dividend + buyback yield combined
Buyback Yield 0.8% Adequate Minimal buyback activity
Total Capital Returned (TTM) $4.1B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 24.6% Top 10% 6.9x above
Free Cash Flow Margin 18.4% Top 50% 2.2x above
Gross Margin 49.0% Bottom 50% 1.0x below
Operating Margin 28.6% Top 10% 6.3x above
Return on Equity (ROE) 41.0% Top 10% 7.6x above
P/E Ratio 39.0x N/A -

Financial Scorecard

Metric AMAT Rating Sector Context
Return on Invested Capital (ROIC) 24.6% Excellent Top 10% of sector (median: 3.6%)
Free Cash Flow Margin 18.4% Good Top 50% of sector (median: 8.5%)
Gross Margin 49.0% Good Bottom 50% of sector (median: 49.9%)
Debt to Equity Ratio 32.0% Good Moderate leverage
P/E Ratio (Price-to-Earnings) 39.0x Adequate High expectations priced in
Free Cash Flow Yield 1.6% Warning Growth-focused valuation

Frequently Asked Questions

Q: What is APPLIED MATERIALS INC /DE's Return on Invested Capital (ROIC)?

APPLIED MATERIALS INC /DE (AMAT) has a trailing twelve-month Return on Invested Capital (ROIC) of 24.6%. Sector median 3.6%. Source: 10-K filed 2025-12-12.

Q: What is APPLIED MATERIALS INC /DE's Free Cash Flow Margin?

APPLIED MATERIALS INC /DE (AMAT) has a free cash flow margin of 18.4%, generating $5.3 billion in free cash flow over the trailing twelve months. Source: 10-K filed 2025-12-12.

Q: What is APPLIED MATERIALS INC /DE's P/E ratio and how does it compare to peers?

APPLIED MATERIALS INC /DE (AMAT) trades at a P/E ratio of 39.0x, which is above the sector median of N/A. EV/Sales 11.4x. FCF yield 1.6%. Source: 10-K filed 2025-12-12.

Q: Does APPLIED MATERIALS INC /DE pay a dividend?

APPLIED MATERIALS INC /DE (AMAT) currently pays a dividend yield of 0.5%. Total shareholder yield (dividend + buybacks) 1.3%. Source: 10-K filed 2025-12-12.

Q: What is APPLIED MATERIALS INC /DE's revenue and earnings growth?

APPLIED MATERIALS INC /DE (AMAT) grew revenue by 3.3% year-over-year. EPS +29.7% YoY. Source: 10-K filed 2025-12-12.

Q: Is APPLIED MATERIALS INC /DE buying back stock?

APPLIED MATERIALS INC /DE (AMAT) repurchased $2.6 billion of stock over the trailing twelve months. This represents a buyback yield of 0.8%. Source: 10-K filed 2025-12-12.

Q: How does APPLIED MATERIALS INC /DE compare to competitors in Technology?

Compared to other companies in Technology, APPLIED MATERIALS INC /DE (AMAT) shows: ROIC 24.6%, sector median 3.6% (Top 10%). FCF margin 18.4%, sector median 8.5% (Top 50%). Gross margin 49.0%, 0.9pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with APPLIED MATERIALS INC /DE?

No quantitative warning flags fired for APPLIED MATERIALS INC /DE (AMAT) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-K filed 2025-12-12.


Data Source: Data sourced from 10-K filed 2025-12-12. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.