Applied Materials (AMAT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Applied Materials

NasdaqGS•Technology•Semiconductor Equipment & Materials

$417.40+2.02(<0.01%)After hours

Market Cap

$331.42B

P/E

35.8x

P/S

10.7x

P/B

12.9x

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. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

How this company scores

ExcellentMetricSide Score: 83/100

Strongest: Profitability (25/25); weakest: Cash & Earnings Quality (16/25).

Profitability25/25

Growth21/25

Balance Sheet & Red Flags21/25

Cash & Earnings Quality16/25

Strengths

Strong marginsHigh ROERising earningsLow leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 35.8x5y range 11.7x – 38.9x

Currently above its 20-quarter median.

P/S · 10.7x5y range 3.0x – 11.4x

Currently above its 20-quarter median.

P/B · 12.9x5y range 6.3x – 13.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $331.42B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $30.84B
Q. Revenue: $9.12B
TTM EBITDA: $9.67B
TTM Op. Income: $9.14B
Q. Op. Income: $3.08B
TTM Net Income: $9.27B
Q. Net Income: $2.54B
EPS: $3.2
Shares Out.: $794.00M

$30.84B in TTM revenue grew 7.8% YoY, reaching $9.12B last quarter. TTM EBITDA of $9.67B and TTM operating income of $9.14B show growth is flowing through to the bottom line. TTM net income of $9.27B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 50.3%
EBITDA Margin: 35.4%
Op. Margin: 33.7%
Net Margin: 27.8%

Op. margin of 33.7% is up 3.2% YoY — cost efficiency is improving. Net margin at 27.8% and gross margin of 50.3% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 35.8x
P/S Ratio: 10.7x
P/B Ratio: 12.9x

At 35.8x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 10.7x and P/B of 12.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 65% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $43.52B
Cash: $7.04B
Long-Term Debt: $5.25B
Book Value: $25.63B
D/E Ratio: 0.2
Debt/EBITDA: 1.6

With $43.52B in assets and $5.25B in long-term debt, D/E is 0.2and book value is $25.63B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $3.04B
TTM Free Cash Flow: $5.62B
FCF Margin: 18.2%
FCF / Net Income: 0.6

TTM FCF of $5.62B on $3.04B in operating cash flow. The FCF / Net Income ratio of 0.6x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is down 3% — an improving trend.