Applied Materials, Inc. (AMAT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lam Research Corp.

Trane Technologies Plc

Parker-Hannifin Corp.

Xylem, Inc.

Applied Materials, Inc.

GE Aerospace

Dover Corp.

Illinois Tool Works Inc.

Johnson Controls International Plc

Ingersoll Rand, Inc.

Carrier Global Corp.

Why is Applied Materials, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.66%

Healthy long term growth as Net Sales has grown by an annual rate of 11.96% and Operating profit at 16.96%
Company has a low Debt to Equity ratio (avg) at times

Flat results in Jul 25

DEBT-EQUITY RATIO (HY) Highest at -1.29 %

With ROE of 36.98%, it has a fair valuation with a 16.90 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 38.91%, its profits have risen by 1.7% ; the PEG ratio of the company is 11.4

High Institutional Holdings at 83.77%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 38.91% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Applied Materials, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Applied Materials, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Applied Materials, Inc.

47.11%

0.14

45.90%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.96%

EBIT Growth (5y)

16.96%

EBIT to Interest (avg)

32.37

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.15

Tax Ratio

18.54%

Dividend Payout Ratio

17.66%

Pledged Shares

Institutional Holding

83.77%

ROCE (avg)

50.99%

ROE (avg)

43.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

16.90

EV to EBIT

38.40

EV to EBITDA

36.59

EV to Capital Employed

17.24

EV to Sales

11.39

PEG Ratio

11.39

Dividend Yield

31.45%

ROCE (Latest)

44.90%

ROE (Latest)

36.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 20.74%

DIVIDEND PER SHARE(HY)

Highest at USD 5.03

OPERATING PROFIT MARGIN(Q)

Highest at 32.13 %

PRE-TAX PROFIT(Q)

Highest at USD 2,271 MM

RAW MATERIAL COST(Y)

Fallen by -3.22% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.03 times

NET SALES(Q)

Highest at USD 7,302 MM

OPERATING PROFIT(Q)

Highest at USD 2,346 MM

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -1.29 %

Here's what is working for Applied Materials, Inc.

Operating Profit Margin

Highest at 32.13 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 2,271 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Dividend per share

Highest at USD 5.03 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 20.74% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at USD 7,302 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 2,346 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Debtors Turnover Ratio

Highest at 5.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 113 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Applied Materials, Inc.

Debt-Equity Ratio

Highest at -1.29 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio