Fundamental analysis · SEC EDGAR · TTM through 26/04/2026
AMAT · Nasdaq · Technology
Fundamental quality
85
out of 100
Applied Materials Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 35.6%) with wide margins (net margin 29.3%) and a business that keeps growing (10% a year). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +10%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Applied Materials is the world's largest maker of the machines that make chips. It sells the equipment that semiconductor fabs (like TSMC, Intel or Samsung) need to produce microchips. It's a critical 'picks and shovels' supplier to the whole industry.
EPS growth: 19.9% · Revenue growth: 10%
Net margin: 29.3% · ROE: 35.6% · ROIC: 28.3%
Net debt/EBITDA: 0.02x · FCF: 18.4%
Source: SEC EDGAR · TTM through 26/04/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 17,202 | 3,619 | 3,382 | 97 |
| 2021 | 23,063 | 5,888 | 4,774 | 457 |
| 2022 | 25,785 | 6,525 | 4,612 | 3,462 |
| 2023 | 26,517 | 6,856 | 7,594 | -671 |
| 2024 | 27,176 | 7,177 | 7,487 | -1,862 |
| 2025 | 28,368 | 6,998 | 5,698 | -786 |
Between 2020 and 2025, revenue went from $17,202M to $28,368M (+65%) and net income went from $3,619M to $6,998M (+93%). Meanwhile, its margins have widened (from 21% to 25%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the half-year ended April 26, 2026, versus the half-year ended April 27, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$0.06
per share, yearly
19.8% of earnings
Payout
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.
The serious investor's standard
Open free account →Anyone who wants low commissions and access to almost any market in the world.
Popular in the U.S.
Open free account →Anyone investing in the U.S. who wants a powerful, commission-free stock app.
Investing carries risk of loss.
Is Applied Materials Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Applied Materials Inc a good company to invest in?
In terms of business quality, Applied Materials Inc scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Applied Materials Inc a profitable company?
Very. Applied Materials Inc shows a net margin of 29.3% and an ROE of 35.6%, typical of a highly profitable business.
Does Applied Materials Inc have a lot of debt?
Not particularly. Its net debt is 0.02 times its EBITDA, a low level.
Is Applied Materials Inc growing?
Its revenue has grown 10% annualized in recent years and its earnings per share 19.9%, and without interruption since 2020.
Does Applied Materials Inc generate cash?
Yes. It converts about 18.4% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
More Technology companies
NXP Semiconductors (NXPI) · Shopify (SHOP) · Arm Holdings (ARM) · Reddit (RDDT) · Roblox (RBLX) · Duolingo (DUOL) · see more →
The best Technology stocks by our model →
Compare Applied Materials Inc with 500+ companies in the screener →
Who's behind the methodology and model · how the score is computed
Data: see Applied Materials Inc's filings on EDGAR
Spotted a figure that looks wrong? Report it and we'll review it.