AMAT
APPLIED MATERIALS INC /DE
Technology • CIK: 0000006951
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Market Cap
$183.91B
P/E (TTM)
26.2x
Rev Growth (TTM)
—
Net Margin (TTM)
24.7%
FCF Yield (TTM)
3.1%
FCF Margin (TTM)
20.1%
Cash Flow Health
Free Cash Flow7/8 positive
TTM$5.7B
Q4 '25
$2.0B-0%
Q3 '25
$2.0B+93%
FCF Margin
TTM20.1%
Q4 '2530.0%+7%
Sector: 14.5%Above Avg
OCF Margin28.1%
OCF/NI1.14x
CapEx Coverage3.5x
FCF Yield3.1%
FCF Growth (2Y)–
Cash Conversion Cycle
172 days
DSO: 75+DIO: 142−DPO: 44
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM3.4%
Div Yield0.8%
+Buyback (TTM)2.7%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)0.8%
FCF Payout Ratio25.1%
Free Cash Flow (TTM)$5.7B
Stock Repurchases (TTM)$4.9B
Capital Return / FCF110.5%
Est. Dividends Paid (TTM)$1.4B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
30.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
22.1%
Asset Turnover
0.83x
Leverage (1+D/E)
1.32x
D/E: 0.32x
DuPont: 24.2% ≈ 30.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.32x
8Q:–
Invested Cap Turn
1.38x
8Q:–
CapEx Intensity
11.0%
8Q:–
CapEx/Depreciation
5.20x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $28.4B | $6.8B↓6.9% | $7.3B↑2.8% | $7.1B↓0.9% | $7.2B↑1.7% | $7.0B↑3.9% | $6.8B↑2.0% | $6.6B↓0.9% | $6.7B |
Operating Income | $8.3B | $1.7B↓23.3% | $2.2B↑3.0% | $2.2B↓0.3% | $2.2B↑6.3% | $2.0B↑5.4% | $1.9B | $0↓100.0% | $1.9B |
Net Income | $7.0B | $1.9B↑6.6% | $1.8B↓16.8% | $2.1B↑80.3% | $1.2B↓31.5% | $1.7B↑1.5% | $1.7B↓1.0% | $1.7B↓14.7% | $2.0B |
Operating Cash Flow | $8.0B | $2.8B↑7.4% | $2.6B↑67.7% | $1.6B↑69.8% | $925.0M↓64.1% | $2.6B↑8.0% | $2.4B↑71.3% | $1.4B↓40.1% | $2.3B |
Free Cash Flow | $5.7B | $2.0B↓0.3% | $2.0B↑93.2% | $1.1B↑95.0% | $544.0M↓74.9% | $2.2B↑3.8% | $2.1B | $0↓100.0% | $1.1B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
26.2x
Valuation Lenses
Earnings
26.2x
vs – sector
Cash Flow
7.2x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
0.9P/E per %ROIC
ROIC: 30.3%
Shareholder Returns
Dividend
0.8%
Buyback
2.7%
Total Yield
3.4%
Market Cap$183.91B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
100/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
36.4%
8Q:–
Return on Invested Capital (ROIC)Top 25%
30.3%
8Q:–
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 22.1%
Asset Turnover: 0.83x
Earnings Quality
Cash Conversion
1.14x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin48.7%
Capital Efficiency
Invested Capital Turnover1.38x
Working Capital
Cash Conversion Cycle172 days
Growth Quality & Momentum
Growth Rates
Revenue Growth YoY
N/A
OpInc Growth YoY
-16.3%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
48.7%
Operating
29.2%
Top 25% in sector
Net
24.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-4.6 pts
FCF: 20.1% | Net: 24.7%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.09B
Interest Coverage
–
+Net cash position: $2.09B
Leverage Metrics
Debt-to-Equity
0.32x
Balance sheet risk & solvency analysis