COMPOSITE RISK SCORE
50
MODERATE
VAL:12/25 · FIN:14/25 · GRO:9/25 · TECH:15/25
📖 P/B RATIO
13.9x
Price to Book
🏛 MARKET CAP
$302.0B
Large Cap
📊 ROE
38.9%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Applied Materials, Inc.
💼 BUSINESS MODEL
Applied Materials, Inc.. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally.. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments.. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.. Operates in Semiconductor Equipment & Materials within the Technology sector. Workforce of 35,500 employees.
🏰 MOAT & COMPETITION
Mega-cap ($302B) — dominant market position with significant scale advantages. ROE of 38.9% indicates strong competitive advantage and efficient capital deployment. Profit margin of 27.8% suggests pricing power / cost moat.
🚀 CATALYSTS
Erste Group Upgrades Applied Materials (AMAT) on AI-Driven Semiconductor Investment (Insider Monkey) Earnings growth of 75% signals execution on profitability.
⚖️ ASYMMETRY CHECK
Analyst target range: $280 — $500 (mean $423, 32 analysts). Moderate asymmetry — upside +31% vs downside -26% (1.2x).P/E of 39.0x — fair value territory; catalysts needed for re-rating.
🔭 FUTURE OUTLOOK
Analyst consensus: Buy (32 analysts). Latest quarter earnings grew 71% YoY — positive trajectory.
P/E at 39x
P/B at 13.9x
Analyst target: $422.97 (+11.1%)
1Y return: +156.8%
ROE: 38.9%
Profit margin: 27.8%
Revenue growth: -2.1%
Debt/Equity: 33%
Revenue growth: -2.1%
Earnings growth: 75.2%
Beta: 1.64
Sector: Technology
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
58.9
53.5
48.1
42.7
37.3
2022
2023
2024
2025
2022: 51.2 2023: 46.9 2024: 44.2 2025: 43.9 43.9
28.5
24.5
20.5
16.6
12.6
2022
2023
2024
2025
2022: 24.8 2023: 18.5 2024: 15.9 2025: 14.8 14.8
13.5
12.4
11.3
10.2
9.1
2022
2023
2024
2025
2022: 11.7 2023: 11.4 2024: 11.1 2025: 10.7 10.7
10.0
9.1
8.1
7.2
6.3
2022
2023
2024
2025
2022: 7.4 2023: 8.1 2024: 8.6 2025: 8.7 8.7
💎 Valuation & Financial Metrics
P/E RATIO
39.0x
Trailing twelve months
P/B RATIO
13.9x
Price to Book value
PROFIT MARGIN
27.8%
Net profit margin
OPM
29.9%
Operating profit margin
ANALYST TARGET
$422.97
Range: $280.00 - $500.00
PEG RATIO
1.82
Price/Earnings to Growth
EV/EBITDA
33.9x
Enterprise value ratio
CURRENT RATIO
2.71
Liquidity measure
DIVIDEND YIELD
56.00%
Annual yield
GROSS MARGIN
48.7%
Gross profit margin
SECTOR BENCHMARKS — SEMICONDUCTOR EQUIPMENT & MATERIALS
P/E (fair) 35.0x (sector mid)
P/B (fair) 8.0x (sector mid)
ROE (good) 25% (sector target)
OPM (good) 25% (sector target)
D/E comfort <20 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q1 '25
$7.2B —
$1.2B —
$925.0M
31.9%
Q2 '25
$7.1B -0.9%
$2.1B +80.3%
$1.6B
35.1%
Q3 '25
$7.3B +2.8%
$1.8B -16.8%
$2.6B
37.6%
Q4 '25
$6.8B -6.9%
$1.9B +6.6%
$2.8B
36.1%
Q1 '26
$7.0B +3.1%
$2.0B +6.8%
$1.7B
36.0%
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2021
N/A —
N/A —
N/A —
2022
$25.8B —
$6.5B —
$5.4B —
2023
$26.5B +2.8%
$6.9B +5.1%
$8.7B +61.1%
2024
$27.2B +2.5%
$7.2B +4.7%
$8.7B -0.3%
2025
$28.4B +4.4%
$7.0B -2.5%
$8.0B -8.3%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Applied Materials, Inc. Makes Its Money
Quarterly
Annual
Revenue
$7.0B
Cost of Revenue
$3.6B
Gross Profit
$3.4B
R&D
$928M
SG&A
$411M
Operating Inc.
$2.1B
Tax
$302M
Interest
$69M
Other
$265M
Net Income
$2.0B
(28.9% margin)
Jan 2026 · All values in $ Millions
Revenue
$6.8B
Cost of Revenue
$3.5B
Gross Profit
$3.3B
R&D
$917M
SG&A
$455M
Operating Inc.
$1.9B
Tax
$370M
Interest
$71M
Net Income
$1.9B
(27.9% margin)
Oct 2025 · All values in $ Millions
Revenue
$7.3B
Cost of Revenue
$3.7B
Gross Profit
$3.6B
R&D
$901M
SG&A
$428M
Operating Inc.
$2.2B
Tax
$784M
Interest
$66M
Net Income
$1.8B
(24.4% margin)
Jul 2025 · All values in $ Millions
Revenue
$7.1B
Cost of Revenue
$3.6B
Gross Profit
$3.5B
R&D
$893M
SG&A
$423M
Operating Inc.
$2.2B
Tax
$185M
Interest
$68M
Net Income
$2.1B
(30.1% margin)
Apr 2025 · All values in $ Millions
Revenue
$28.4B
Cost of Revenue
$14.6B
Gross Profit
$13.8B
R&D
$3.6B
SG&A
$1.8B
Operating Inc.
$8.5B
Tax
$2.3B
Interest
$269M
Other
$181M
Net Income
$7.0B
(24.7% margin)
Oct 2025 · All values in $ Millions
Revenue
$27.2B
Cost of Revenue
$14.3B
Gross Profit
$12.9B
R&D
$3.2B
SG&A
$1.8B
Operating Inc.
$7.9B
Tax
$975M
Interest
$247M
Net Income
$7.2B
(26.4% margin)
Oct 2024 · All values in $ Millions
Revenue
$26.5B
Cost of Revenue
$14.1B
Gross Profit
$12.4B
R&D
$3.1B
SG&A
$1.6B
Operating Inc.
$7.7B
Tax
$860M
Interest
$238M
Net Income
$6.9B
(25.9% margin)
Oct 2023 · All values in $ Millions
Revenue
$25.8B
Cost of Revenue
$13.8B
Gross Profit
$12.0B
R&D
$2.8B
SG&A
$1.4B
Operating Inc.
$7.8B
Tax
$1.1B
Interest
$228M
Net Income
$6.5B
(25.3% margin)
Oct 2022 · All values in $ Millions
Jan 2026
Oct 2025
Jul 2025
Apr 2025
🏦 Snapshot of Applied Materials, Inc.'s Balance Sheet
Quarterly
Annual
Total Assets
$37.6B
Cash & Equiv.: $7.2B (19.2%)
Receivables: $5.0B (13.2%)
Inventory: $6.0B (15.9%)
Other Current: $2.9B (7.6%)
PP&E: $5.6B (14.9%)
Goodwill: $3.7B (9.8%)
Other Non-Curr.: $7.1B (18.8%)
Liab. + Equity
$37.6B
Current Liab.: $7.8B (20.6%)
Long-Term Debt: $6.5B (17.1%)
Other Liab.: $1.7B (4.6%)
Equity: $21.7B (57.7%)
As of Jan 2026 · All values in $ Millions
Total Assets
$36.3B
Cash & Equiv.: $7.2B (19.9%)
Receivables: $5.2B (14.3%)
Inventory: $5.9B (16.3%)
Other Current: $2.5B (7.0%)
PP&E: $5.1B (14.1%)
Goodwill: $3.7B (10.2%)
Other Non-Curr.: $6.4B (17.5%)
Liab. + Equity
$36.3B
Current Liab.: $8.0B (22.0%)
Long-Term Debt: $6.5B (17.8%)
Other Liab.: $1.4B (3.9%)
Equity: $20.4B (56.2%)
As of Oct 2025 · All values in $ Millions
Total Assets
$34.2B
Cash & Equiv.: $5.4B (15.7%)
Receivables: $5.8B (16.9%)
Inventory: $5.8B (17.0%)
Other Current: $2.8B (8.1%)
PP&E: $4.6B (13.6%)
Goodwill: $3.7B (11.0%)
Other Non-Curr.: $5.9B (17.1%)
Liab. + Equity
$34.2B
Current Liab.: $7.9B (23.0%)
Long-Term Debt: $5.5B (16.0%)
Other Liab.: $1.4B (4.0%)
Equity: $19.5B (57.0%)
As of Jul 2025 · All values in $ Millions
Total Assets
$33.6B
Cash & Equiv.: $6.2B (18.3%)
Receivables: $6.2B (18.4%)
Inventory: $5.7B (16.8%)
Other Current: $1.7B (5.0%)
PP&E: $4.3B (12.7%)
Goodwill: $3.7B (11.1%)
Other Non-Curr.: $5.7B (16.8%)
Liab. + Equity
$33.6B
Current Liab.: $8.0B (23.8%)
Long-Term Debt: $5.5B (16.2%)
Other Liab.: $1.2B (3.6%)
Equity: $19.0B (56.4%)
As of Apr 2025 · All values in $ Millions
Total Assets
$36.3B
Cash & Equiv.: $7.2B (19.9%)
Receivables: $5.2B (14.3%)
Inventory: $5.9B (16.3%)
Other Current: $2.5B (7.0%)
PP&E: $5.1B (14.1%)
Goodwill: $3.7B (10.2%)
Other Non-Curr.: $6.4B (17.5%)
Liab. + Equity
$36.3B
Current Liab.: $8.0B (22.0%)
Long-Term Debt: $6.5B (17.8%)
Other Liab.: $1.4B (3.9%)
Equity: $20.4B (56.2%)
As of Oct 2025 · All values in $ Millions
Total Assets
$34.4B
Cash & Equiv.: $8.0B (23.3%)
Receivables: $5.2B (15.2%)
Inventory: $5.4B (15.8%)
Other Current: $2.5B (7.4%)
PP&E: $3.7B (10.8%)
Goodwill: $3.7B (10.8%)
Other Non-Curr.: $5.5B (16.0%)
Liab. + Equity
$34.4B
Current Liab.: $8.5B (24.6%)
Long-Term Debt: $5.5B (15.9%)
Other Liab.: $1.5B (4.3%)
Equity: $19.0B (55.2%)
As of Oct 2024 · All values in $ Millions
Total Assets
$30.7B
Cash & Equiv.: $6.1B (20.0%)
Receivables: $5.2B (16.8%)
Inventory: $5.7B (18.6%)
Other Current: $2.1B (6.9%)
PP&E: $3.2B (10.4%)
Goodwill: $3.7B (12.1%)
Other Non-Curr.: $4.4B (14.2%)
Liab. + Equity
$30.7B
Current Liab.: $7.4B (24.0%)
Long-Term Debt: $5.5B (17.8%)
Other Liab.: $1.5B (5.0%)
Equity: $16.3B (53.2%)
As of Oct 2023 · All values in $ Millions
Total Assets
$26.7B
Cash & Equiv.: $2.0B (7.5%)
Receivables: $6.1B (22.7%)
Inventory: $5.9B (22.2%)
Other Current: $1.9B (7.2%)
PP&E: $2.7B (10.1%)
Goodwill: $3.7B (13.8%)
Other Intangibles: $339M (1.3%)
Other Non-Curr.: $4.1B (15.2%)
Liab. + Equity
$26.7B
Current Liab.: $7.4B (27.6%)
Long-Term Debt: $5.5B (20.4%)
Other Liab.: $1.7B (6.3%)
Equity: $12.2B (45.6%)
As of Oct 2022 · All values in $ Millions
Jan 2026
Oct 2025
Jul 2025
Apr 2025
💸 Looking into Applied Materials, Inc.'s Cash Flow
Quarterly
Annual
Operating CF
$1.7B
Capital Exp.
$646M
Free Cash Flow
$1.0B
Dividends
$365M
Buybacks
$337M
Debt Repaid
$200M
Retained / Other
$138M
FY2026 · All values in $ Millions
Operating CF
$2.8B
Capital Exp.
$785M
Free Cash Flow
$2.0B
Dividends
$365M
Buybacks
$851M
Debt Repaid
$700M
Retained / Other
$127M
FY2025 · All values in $ Millions
Operating CF
$2.6B
Capital Exp.
$584M
Free Cash Flow
$2.0B
Dividends
$368M
Buybacks
$1.1B
Retained / Other
$626M
FY2025 · All values in $ Millions
Operating CF
$1.6B
Capital Exp.
$510M
Free Cash Flow
$1.1B
Dividends
$325M
Buybacks
$1.7B
FY2025 · All values in $ Millions
Operating CF
$8.0B
Capital Exp.
$2.3B
Free Cash Flow
$5.7B
Dividends
$1.4B
Buybacks
$4.9B
Debt Repaid
$700M
FY2025 · All values in $ Millions
Operating CF
$8.7B
Capital Exp.
$1.2B
Free Cash Flow
$7.5B
Dividends
$1.2B
Buybacks
$3.8B
Debt Repaid
$102M
Retained / Other
$2.4B
FY2024 · All values in $ Millions
Operating CF
$8.7B
Capital Exp.
$1.1B
Free Cash Flow
$7.6B
Dividends
$975M
Buybacks
$2.2B
Retained / Other
$4.4B
FY2023 · All values in $ Millions
Operating CF
$5.4B
Capital Exp.
$787M
Free Cash Flow
$4.6B
Dividends
$873M
Buybacks
$6.1B
FY2022 · All values in $ Millions
FY2026
FY2025
FY2025
FY2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Jan '26 Oct '25 Jul '25 Apr '25 Jan '25 Total Revenue $7.01B $6.80B $7.30B $7.10B $7.17B Cost of Revenue $3.58B $3.54B $3.74B $3.62B $3.67B Gross Profit $3.44B $3.27B $3.56B $3.48B $3.50B Operating Expense $1.34B $1.37B $1.33B $1.32B $1.32B Operating Income $2.10B $1.89B $2.23B $2.17B $2.17B Interest Expense $69.0M $71.0M $66.0M $68.0M $64.0M Pretax Income $2.33B $2.27B $2.56B $2.32B $2.12B Tax Provision $302.0M $370.0M $784.0M $185.0M $934.0M Net Income $2.03B $1.90B $1.78B $2.14B $1.19B EBITDA $2.52B $2.45B $2.74B $2.49B $2.29B EPS (Basic) $2.55 $2.39 $2.23 $2.64 $1.46 EPS (Diluted) $2.54 $2.38 $2.22 $2.63 $1.45 Shares Outstanding 799.0M 798.0M 802.0M 812.0M 819.0M
📊 Profit & Loss Statement
Item Oct '25 Oct '24 Oct '23 Oct '22 Oct '21 Total Revenue $28.37B $27.18B $26.52B $25.79B — Cost of Revenue $14.56B $14.28B $14.13B $13.79B — Gross Profit $13.81B $12.90B $12.38B $11.99B — Operating Expense $5.34B $5.03B $4.73B $4.21B — Operating Income $8.47B $7.87B $7.65B $7.78B — Interest Expense $269.0M $247.0M $238.0M $228.0M — Pretax Income $9.27B $8.15B $7.72B $7.60B — Tax Provision $2.27B $975.0M $860.0M $1.07B — Net Income $7.00B $7.18B $6.86B $6.53B — EBITDA $9.97B $8.79B $8.47B $8.27B — EPS (Basic) $8.71 $8.68 $8.16 $7.49 — EPS (Diluted) $8.66 $8.61 $8.11 $7.44 — Shares Outstanding 808.0M 834.0M 845.0M 877.0M —
🏦 Balance Sheet
Item Oct '25 Oct '24 Oct '23 Oct '22 Oct '21 Total Assets $36.30B $34.41B $30.73B $26.73B — Current Assets $20.88B $21.22B $19.15B $15.93B — Cash & Equivalents $7.24B $8.02B $6.13B $2.00B — Accounts Receivable $5.18B $5.23B $5.17B $6.07B — Inventory $5.92B $5.42B $5.72B $5.93B — Non-Current Assets $15.42B $13.19B $11.58B $10.80B — Property Plant & Equip $5.12B $3.71B $3.20B $2.70B — Goodwill $3.71B $3.73B $3.73B $3.70B — Intangible Assets $3.93B $3.98B $4.03B $4.04B — Total Liabilities $15.88B $15.41B $14.38B $14.53B — Current Liabilities $8.00B $8.47B $7.37B $7.38B — Accounts Payable $1.98B $1.57B $1.48B $1.75B — Short-Term Debt $100.0M $800.0M $100.0M — — Long-Term Debt $6.46B $5.46B $5.46B $5.46B — Total Equity $20.41B $19.00B $16.35B $12.19B — Retained Earnings $55.23B $49.65B $43.73B $37.89B — Book Value/Share 16.48B 15.02B 12.32B 8.15B —
💰 Cash Flow Statement
Item Oct '25 Oct '24 Oct '23 Oct '22 Oct '21 Operating Cash Flow $7.96B $8.68B $8.70B $5.40B — Depreciation & Amort. $435.0M $392.0M $515.0M $444.0M — Change in Working Cap $-200.0M $1.12B $775.0M $-1.79B — Capital Expenditure $-2.26B $-1.19B $-1.11B $-787.0M — Free Cash Flow $5.70B $7.49B $7.59B $4.61B — Investing Cash Flow $-2.78B $-2.33B $-1.53B $-1.36B — Acquisitions $-29.0M $0 $-25.0M $-441.0M — Financing Cash Flow $-5.98B $-4.47B $-3.03B $-7.04B — Debt Issued $991.0M $694.0M $0 $0 — Debt Repaid $-700.0M $-102.0M $-7.0M $0 — Dividends Paid $-1.38B $-1.19B $-975.0M $-873.0M — Share Buyback $-4.89B $-3.82B $-2.19B $-6.10B — Net Change in Cash $-801.0M $1.88B $4.13B $-3.00B —
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 FY2021 Gross Margin % 48.7% 47.5% 46.7% 46.5% — Operating Margin % 29.9% 28.9% 28.9% 30.2% — Net Margin % 24.7% 26.4% 25.9% 25.3% — EBITDA Margin % 35.2% 32.3% 31.9% 32.1% — ROE % 34.3% 37.8% 41.9% 53.5% — ROA % 19.3% 20.9% 22.3% 24.4% — Debt/Equity % 34.5% 34.8% 36.7% 47.8% — Current Ratio 2.61 2.51 2.60 2.16 — FCF Margin % 20.1% 27.6% 28.6% 17.9% — Asset Turnover 0.78 0.79 0.86 0.96 —
🚀 Compounded Growth Rates
Revenue
1-Year +4.4% 3-Year CAGR +3.4%
Net Profit
1-Year -2.5% 3-Year CAGR +1.0%
EPS
1-Year +0.6% 3-Year CAGR +3.3%
🏭 Industry Peers — Semiconductor Equipment & Materials
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth AAPL Apple Inc. $269.05 34.1 44.9 $3,950.0B 152.0% 27.0% 15.7% MSFT Microsoft Corporation $423.96 26.5 8.1 $3,151.0B 34.4% 39.0% 16.7% GOOGL Alphabet Inc. $350.37 32.4 10.2 $4,238.6B 35.7% 32.8% 18.0% META Meta Platforms, Inc. $671.66 28.6 7.8 $1,705.0B 30.2% 30.1% 23.8% NVDA NVIDIA Corporation $210.37 42.9 32.5 $5,113.0B 101.5% 55.6% 73.2% ORCL Oracle Corporation $162.77 29.2 14.0 $468.1B 57.6% 25.3% 21.7% CRM Salesforce, Inc. $180.20 23.1 2.8 $147.4B 12.4% 18.0% 12.1% ADBE Adobe Inc. $241.48 14.1 8.6 $97.6B 58.8% 29.5% 12.0%
Peers selected from Technology sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held Vanguard Group Inc Inst 76,779,340 9.67% Blackrock Inc. Inst 75,259,089 9.48% State Street Corporation Inst 37,930,623 4.78% Capital Research Global Investors Inst 32,707,049 4.12% Geode Capital Management, LLC Inst 18,608,698 2.34% VANGUARD INDEX FUNDS-Vanguard Total MF 25,033,887 3.15% VANGUARD INDEX FUNDS-Vanguard 500 I MF 20,089,232 2.53% Invesco QQQ Trust, Series 1 MF 16,945,748 2.14%
🟢 CATALYSTS
🏆 High ROE (38.9%): Above sector norm of 25% — efficient capital use.
💹 Healthy Margins (27.8%): Above sector norm of 25%.
🔀 Analyst Upside (11%): Mean target of $422.97 above current price.
🇺 Earnings Growth (75%): Above sector norm — strong profit expansion.
🔴 RISKS
📜 High Beta (1.64): More volatile than market — higher swing risk.
💰 Revenue Decline (-2.1%): Top-line shrinking — negative trend.
🔓 Market Risk: Broader market correction or sentiment shift could impact stock.
🕸 Factor Analysis · Radar
Momentum 7/10: 1M +17.8%, 6M +62.0%, RSI 50, MACD bearish, Above 200DMA Sentiment 7/10: Analyst upside +11.1%, Rec: buy Value 3/10: P/E 39.0, P/B 13.9, PEG 1.82, EV/EBITDA 33.9 Quality 9/10: ROE 38.9%, Margin 27.8%, D/E 33, CR 2.71 Low Volatility 1/10: Beta 1.64, Ann. vol 45% Momentum
7
Sentiment
7
Value
3
Quality
9
Low Vol
1
Momentum 7/10 1M +17.8%, 6M +62.0%, RSI 50, MACD bearish, Above 200DMA
Sentiment 7/10 Analyst upside +11.1%, Rec: buy
Value 3/10 P/E 39.0, P/B 13.9, PEG 1.82, EV/EBITDA 33.9
Quality 9/10 ROE 38.9%, Margin 27.8%, D/E 33, CR 2.71
Low Volatility 1/10 Beta 1.64, Ann. vol 45%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Capture 11.1% analyst upside OPM of 30% provides margin buffer HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +17.8% shows momentum SELL Lock in +156.8% 1Y return Avoid further drawdown
REASONS TO BUY
Analyst upside of 11.1% with mean target of $422.97
ROE of 38.9% above sector norm of 25%
Operating margin of 30% shows pricing power (sector norm: 25%)
REASONS TO SELL / AVOID
1Y return of +156.8% — profit booking opportunity
Applied Materials, Inc. trades at $380.60 with a composite risk score of 50/100.
The stock scores 12/25 on valuation, 14/25 on financial health, 9/25 on growth, and 15/25 on technicals.
The company is currently profitable with strong return on equity.
Bottom Line: Neutral for Technology — wait for better entry or catalyst. The current recommendation is HOLD .
PROFITABLE
HIGH ROE
UPSIDE POTENTIAL
VOLATILE