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Applied Materials, Inc. (AMAT) 10-Year Financial Performance & Capital Metrics

AMAT • • Industrial / General
TechnologySemiconductorsSemiconductor Manufacturing EquipmentWafer Fabrication Equipment
AboutApplied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. The company operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.Show more
  • Revenue $28.37B +4.4%
  • EBITDA $8.4B +1.7%
  • Net Income $7B -2.5%
  • EPS (Diluted) 8.66 +0.6%
  • Gross Margin 48.67% +2.6%
  • EBITDA Margin 29.61% -2.6%
  • Operating Margin 29.22% +0.9%
  • Net Margin 24.67% -6.6%
  • ROE 35.51% -12.6%
  • ROIC 33.32% -4.6%
  • Debt/Equity 0.32 -7.6%
  • Interest Coverage 30.81 -3.3%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Excellent 3Y average ROE of 41.4%
  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 20.1% free cash flow margin
  • ✓Momentum leader: RS Rating 91 (top 9%)
  • ✓Strong 5Y sales CAGR of 10.5%
  • ✓Share count reduced 3.1% through buybacks

✗Weaknesses

  • ✗Expensive at 12.6x book value

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.38%
5Y10.52%
3Y3.23%
TTM4.39%

Profit (Net Income) CAGR

10Y17.65%
5Y14.1%
3Y2.36%
TTM-2.49%

EPS CAGR

10Y22.7%
5Y17.18%
3Y5.19%
TTM0.7%

ROCE

10Y Avg30.59%
5Y Avg35.06%
3Y Avg32.78%
Latest30.56%

Peer Comparison

Wafer Fabrication Equipment
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
UCTTUltra Clean Holdings, Inc.1.97B43.3683.3820.93%-7.52%-20.33%0.08%0.71
ASMLASML Holding N.V.516.86B1331.6069.212.56%30.58%51.86%1.84%0.27
LRCXLam Research Corporation273.15B217.4752.4023.68%29.66%57.01%1.98%0.48
AMATApplied Materials, Inc.253.01B319.0836.854.39%24.67%34.28%2.25%0.32
ACMRACM Research, Inc.3.12B52.2034.1140.23%13.3%6.21%2.24%0.17
VECOVeeco Instruments Inc.2.06B34.0927.727.63%7.23%5.62%2.22%0.41
ACLSAxcelis Technologies, Inc.2.96B96.5015.69-9.97%15.93%13.32%4.34%0.04
ASYSAmtech Systems, Inc.203.87M14.20-23.67-10.68%-38.18%-61.74%2.43%0.21

Profit & Loss

Oct 2016Oct 2017Oct 2018Oct 2019Oct 2020Oct 2021Oct 2022Oct 2023Oct 2024Oct 2025
Sales/Revenue+10.82B14.7B16.7B14.61B17.2B23.06B25.79B26.52B27.18B28.37B
Revenue Growth %0.12%0.36%0.14%-0.13%0.18%0.34%0.12%0.03%0.02%0.04%
Cost of Goods Sold+6.31B8.09B9.19B8.22B9.51B12.15B13.79B14.13B14.28B14.56B
COGS % of Revenue0.58%0.55%0.55%0.56%0.55%0.53%0.53%0.53%0.53%0.51%
Gross Profit+4.51B6.61B7.52B6.39B7.69B10.91B11.99B12.38B12.9B13.81B
Gross Margin %0.42%0.45%0.45%0.44%0.45%0.47%0.47%0.47%0.47%0.49%
Gross Profit Growth %0.14%0.47%0.14%-0.15%0.2%0.42%0.1%0.03%0.04%0.07%
Operating Expenses+2.36B2.66B3.02B3.04B3.33B4.03B4.21B4.73B5.03B5.52B
OpEx % of Revenue0.22%0.18%0.18%0.21%0.19%0.17%0.16%0.18%0.19%0.19%
Selling, General & Admin819M890M999M982M1.09B1.23B1.44B1.63B1.8B1.77B
SG&A % of Revenue0.08%0.06%0.06%0.07%0.06%0.05%0.06%0.06%0.07%0.06%
Research & Development1.54B1.77B2.02B2.05B2.23B2.48B2.77B3.1B3.23B3.57B
R&D % of Revenue0.14%0.12%0.12%0.14%0.13%0.11%0.11%0.12%0.12%0.13%
Other Operating Expenses003M00311M000181M
Operating Income+2.15B3.94B4.49B3.35B4.37B6.89B7.79B7.65B7.87B8.29B
Operating Margin %0.2%0.27%0.27%0.23%0.25%0.3%0.3%0.29%0.29%0.29%
Operating Income Growth %0.27%0.83%0.14%-0.25%0.3%0.58%0.13%-0.02%0.03%0.05%
EBITDA+2.54B4.34B4.95B3.71B4.74B7.28B8.23B8.17B8.26B8.4B
EBITDA Margin %0.23%0.3%0.3%0.25%0.28%0.32%0.32%0.31%0.3%0.3%
EBITDA Growth %0.23%0.71%0.14%-0.25%0.28%0.54%0.13%-0.01%0.01%0.02%
D&A (Non-Cash Add-back)389M407M457M363M376M394M444M515M392M110M
EBIT2.17B4.01B4.63B3.51B4.41B7.01B7.83B7.95B8.4B9.54B
Net Interest Income+-139M-120M-95M-81M-199M-118M-189M62M285M-269M
Interest Income16M78M139M156M41M118M39M300M532M0
Interest Expense155M198M234M237M240M236M228M238M247M269M
Other Income/Expense-139M-120M-95M-81M-199M-118M-189M62M285M982M
Pretax Income+2.01B3.82B4.4B3.27B4.17B6.77B7.6B7.72B8.15B9.27B
Pretax Margin %0.19%0.26%0.26%0.22%0.24%0.29%0.29%0.29%0.3%0.33%
Income Tax+292M297M1.36B563M547M883M1.07B860M975M2.27B
Effective Tax Rate %0.85%0.92%0.69%0.83%0.87%0.87%0.86%0.89%0.88%0.75%
Net Income+1.72B3.52B3.04B2.71B3.62B5.89B6.53B6.86B7.18B7B
Net Margin %0.16%0.24%0.18%0.19%0.21%0.26%0.25%0.26%0.26%0.25%
Net Income Growth %0.25%1.04%-0.14%-0.11%0.34%0.63%0.11%0.05%0.05%-0.02%
Net Income (Continuing)1.72B3.52B3.04B2.71B3.62B5.89B6.53B6.86B7.18B7B
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+1.543.172.962.863.926.407.448.118.618.66
EPS Growth %0.38%1.06%-0.07%-0.03%0.37%0.63%0.16%0.09%0.06%0.01%
EPS (Basic)1.563.203.002.893.956.477.498.168.688.71
Diluted Shares Outstanding1.12B1.08B1.03B945M923M919M877M845M834M808M
Basic Shares Outstanding1.11B1.07B1.01B937M916M910M871M840M827M804M
Dividend Payout Ratio0.26%0.12%0.2%0.28%0.22%0.14%0.13%0.14%0.17%0.2%

Balance Sheet

Oct 2016Oct 2017Oct 2018Oct 2019Oct 2020Oct 2021Oct 2022Oct 2023Oct 2024Oct 2025
Total Current Assets+8.35B12.92B10.6B10.21B13.37B16.11B15.93B19.15B21.22B20.88B
Cash & Short-Term Investments3.75B7.28B4.03B3.62B5.74B5.46B2.58B6.87B9.47B8.57B
Cash Only3.41B5.01B3.44B3.13B5.35B5B2B6.13B8.02B7.24B
Short-Term Investments343M2.27B590M489M387M464M586M737M1.45B1.33B
Accounts Receivable2.28B2.34B2.42B2.64B3.11B5.55B6.53B5.58B5.5B5.18B
Days Sales Outstanding76.8458.0652.9265.9966.0187.7792.4276.7773.9166.71
Inventory2.05B2.93B3.72B3.47B3.9B4.31B5.93B5.72B5.42B5.92B
Days Inventory Outstanding118.51132.26147.82154.22149.84129.46156.99147.85138.57148.28
Other Current Assets275M374M431M473M616M200M422M976M825M1.21B
Total Non-Current Assets+6.22B6.51B7.04B8.83B8.98B9.72B10.8B11.58B13.19B15.42B
Property, Plant & Equipment937M1.07B1.41B1.53B1.86B2.23B2.7B3.2B3.71B4.61B
Fixed Asset Turnover11.55x13.79x11.87x9.55x9.27x10.35x9.56x8.28x7.32x6.15x
Goodwill3.32B3.37B3.37B3.4B3.47B3.48B3.7B3.73B3.73B3.71B
Intangible Assets575M412M213M156M153M104M339M294M249M226M
Long-Term Investments929M1.14B1.57B1.7B1.54B2.06B1.98B2.28B2.79B4.4B
Other Non-Current Assets89M132M260M276M260M229M691M345M314M0
Total Assets+14.57B19.42B17.64B19.04B22.35B25.82B26.73B30.73B34.41B36.3B
Asset Turnover0.74x0.76x0.95x0.77x0.77x0.89x0.96x0.86x0.79x0.78x
Asset Growth %-0.05%0.33%-0.09%0.08%0.17%0.16%0.03%0.15%0.12%0.05%
Total Current Liabilities+3.63B4.12B3.92B4.45B4.46B6.34B7.38B7.37B8.47B8B
Accounts Payable813M945M996M958M1.12B1.47B1.75B1.48B1.57B5.33B
Days Payables Outstanding4742.6639.5742.5343.1444.2246.4538.1740.13133.69
Short-Term Debt200M00600M64M00100M800M100M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities1.1B1.11B950M834M928M924M905M1.02B1.44B0
Current Ratio2.30x3.14x2.70x2.30x3.00x2.54x2.16x2.60x2.51x2.61x
Quick Ratio1.74x2.43x1.75x1.51x2.12x1.86x1.35x1.82x1.87x1.87x
Cash Conversion Cycle148.35147.66161.17177.68172.71173.01202.96186.45172.3581.3
Total Non-Current Liabilities+3.74B5.96B6.87B6.36B7.32B7.23B7.15B7.01B6.94B7.88B
Long-Term Debt3.13B5.3B5.31B4.71B5.45B5.45B5.46B5.46B5.46B6.46B
Capital Lease Obligations0000195M228M287M252M259M0
Deferred Tax Liabilities1M5M12M11M000000
Other Non-Current Liabilities596M651M1.56B1.65B1.67B1.55B1.41B1.29B1.22B1.43B
Total Liabilities7.37B10.07B10.79B10.81B11.78B13.58B14.53B14.38B15.41B15.88B
Total Debt+3.33B5.3B5.31B5.31B5.71B5.75B5.83B6B6.61B6.55B
Net Debt-81M294M1.87B2.18B356M758M3.83B-133M-1.42B-686M
Debt / Equity0.46x0.57x0.78x0.65x0.54x0.47x0.48x0.37x0.35x0.32x
Debt / EBITDA1.31x1.22x1.07x1.43x1.20x0.79x0.71x0.73x0.80x0.78x
Net Debt / EBITDA-0.03x0.07x0.38x0.59x0.08x0.10x0.47x-0.02x-0.17x-0.08x
Interest Coverage13.88x19.88x19.19x14.14x18.19x29.19x34.16x32.16x31.85x30.81x
Total Equity+7.22B9.35B6.84B8.21B10.58B12.25B12.19B16.35B19B20.41B
Equity Growth %-0.05%0.3%-0.27%0.2%0.29%0.16%-0%0.34%0.16%0.07%
Book Value per Share6.478.626.678.6911.4613.3313.9019.3522.7825.27
Total Shareholders' Equity7.22B9.35B6.84B8.21B10.58B12.25B12.19B16.35B19B20.41B
Common Stock11M11M10M9M9M9M8M8M8M0
Retained Earnings15.25B18.26B20.88B24.39B27.21B32.25B37.89B43.73B49.65B0
Treasury Stock-14.74B-15.91B-21.19B-23.6B-24.25B-28B-34.1B-36.3B-40.15B0
Accumulated OCI-115M-64M-125M-180M-299M-260M-202M-217M-168M0
Minority Interest0000000000

Cash Flow

Oct 2016Oct 2017Oct 2018Oct 2019Oct 2020Oct 2021Oct 2022Oct 2023Oct 2024Oct 2025
Cash from Operations+2.47B3.61B3.79B3.25B3.8B5.44B5.4B8.7B8.68B7.96B
Operating CF Margin %0.23%0.25%0.23%0.22%0.22%0.24%0.21%0.33%0.32%0.28%
Operating CF Growth %1.12%0.46%0.05%-0.14%0.17%0.43%-0.01%0.61%-0%-0.08%
Net Income1.72B3.43B3.04B2.71B3.62B5.89B6.53B6.86B7.18B7B
Depreciation & Amortization389M407M457M363M376M394M444M515M392M435M
Stock-Based Compensation201M220M258M263M307M346M413M490M577M653M
Deferred Taxes21M-12M71M49M80M80M-223M24M-633M639M
Other Non-Cash Items15M-63M4M-19M60M78M32M40M47M305M
Working Capital Changes119M-377M-41M-115M-638M-1.34B-1.79B775M1.12B-1.07B
Change in Receivables-542M-37M16M-207M-427M-1.99B-1.11B903M-69M-538M
Change in Inventory-216M-879M-1.01B248M-421M-405M-1.59B207M304M0
Change in Payables107M245M170M-247M327M465M390M-138M281M135M
Cash from Investing+-425M-2.53B571M-443M-130M-1.22B-1.36B-1.53B-2.33B-2.78B
Capital Expenditures-253M-345M-622M-441M-422M-668M-787M-1.11B-1.19B-2.26B
CapEx % of Revenue0.02%0.02%0.04%0.03%0.02%0.03%0.03%0.04%0.04%0.08%
Acquisitions----------
Investments----------
Other Investing0000000000
Cash from Financing+-3.43B521M-5.93B-3.12B-1.34B-4.59B-7.04B-3.03B-4.47B-5.98B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-444M-430M-605M-771M-787M-838M-873M-975M-1.19B-1.38B
Share Repurchases----------
Other Financing23M277M-164M-86M174M-178M-266M-179M243M-248M
Net Change in Cash----------
Free Cash Flow+2.21B3.26B3.17B2.81B3.38B4.77B4.61B7.59B7.49B5.7B
FCF Margin %0.2%0.22%0.19%0.19%0.2%0.21%0.18%0.29%0.28%0.2%
FCF Growth %1.33%0.47%-0.03%-0.11%0.21%0.41%-0.03%0.65%-0.01%-0.24%
FCF per Share1.983.013.082.973.665.195.268.998.987.05
FCF Conversion (FCF/Net Income)1.43x1.03x1.25x1.20x1.05x0.92x0.83x1.27x1.21x1.14x
Interest Paid151M186M219M219M219M205M205M205M205M171M
Taxes Paid-157M194M300M522M542M851M1.87B1.01B957M1.27B

Key Ratios

Metric2016201720182019202020212022202320242025
Return on Equity (ROE)23.21%42.48%37.52%35.94%38.52%51.59%53.39%48.04%40.61%35.51%
Return on Invested Capital (ROIC)22.27%35.19%36.7%26.29%30.69%43.17%40.24%35.61%34.91%33.32%
Gross Margin41.67%44.99%45%43.72%44.72%47.32%46.51%46.7%47.46%48.67%
Net Margin15.9%23.94%18.19%18.52%21.04%25.53%25.31%25.86%26.41%24.67%
Debt / Equity0.46x0.57x0.78x0.65x0.54x0.47x0.48x0.37x0.35x0.32x
Interest Coverage13.88x19.88x19.19x14.14x18.19x29.19x34.16x32.16x31.85x30.81x
FCF Conversion1.43x1.03x1.25x1.20x1.05x0.92x0.83x1.27x1.21x1.14x
Revenue Growth12.07%35.78%13.65%-12.55%17.76%34.07%11.8%2.84%2.49%4.39%

Revenue by Segment

2015201620172018201920202021202220232024
Semiconductor Systems-6.87B9.52B10.9B9.03B11.37B16.29B18.8B19.7B19.91B
Semiconductor Systems Growth--38.47%14.56%-17.21%25.92%43.27%15.42%4.79%1.08%
Applied Global Services2.53B2.59B3.02B3.75B3.85B4.16B5.01B5.54B5.73B6.22B
Applied Global Services Growth-2.29%16.53%24.43%2.66%7.81%20.65%10.57%3.41%8.60%
Display and Adjacent Markets-1.21B1.9B2.5B1.65B1.61B1.63B1.33B868M885M
Display and Adjacent Markets Growth--57.55%31.47%-33.91%-2.67%1.68%-18.54%-34.79%1.96%
Corporate and Other-157M--------
Corporate and Other Growth----------
Total9.66B---------
Total Growth----------
Silicon Systems Group6.13B---------
Silicon Systems Group Growth----------
Display780M---------
Display Growth----------
Energy And Environmental Solutions213M---------
Energy And Environmental Solutions Growth----------

Revenue by Geography

2015201620172018201920202021202220232024
CHINA1.62B2.26B2.75B5.11B4.28B5.46B7.54B7.25B7.25B10.12B
CHINA Growth-39.19%21.56%86.20%-16.35%27.57%38.10%-3.73%-0.10%39.60%
KOREA, REPUBLIC OF1.65B1.88B4.05B3.6B1.93B3.03B5.01B4.39B4.61B4.49B
KOREA, REPUBLIC OF Growth-13.85%115.19%-11.08%-46.46%57.13%65.36%-12.31%4.87%-2.52%
TAIWAN, PROVINCE OF CHINA2.6B2.84B3.29B2.73B2.96B3.95B4.74B6.26B5.67B4.01B
TAIWAN, PROVINCE OF CHINA Growth-9.35%15.76%-16.99%8.53%33.32%19.96%32.05%-9.45%-29.28%
UNITED STATES1.63B1.14B1.47B1.53B1.87B1.62B2.04B3.1B4.01B3.82B
UNITED STATES Growth--29.88%28.96%3.93%22.13%-13.47%25.88%52.31%29.06%-4.69%
JAPAN1.08B1.28B1.52B2.4B2.2B2B1.96B2.01B2.08B2.15B
JAPAN Growth-18.65%18.69%58.43%-8.61%-9.19%-1.70%2.55%3.13%3.81%
Europe642M615M816M1.07B820M736M1.1B1.67B2.15B1.44B
Europe Growth--4.21%32.68%30.64%-23.08%-10.24%49.05%52.60%28.55%-32.95%
Southeast Asia432M803M640M802M548M411M677M1.08B758M1.14B
Southeast Asia Growth-85.88%-20.30%25.31%-31.67%-25.00%64.72%60.12%-30.07%50.53%

Frequently Asked Questions

Valuation & Price

Applied Materials, Inc. (AMAT) has a price-to-earnings (P/E) ratio of 36.8x. This suggests investors expect higher future growth.

Growth & Financials

Applied Materials, Inc. (AMAT) reported $28.37B in revenue for fiscal year 2025. This represents a 225% increase from $8.72B in 2012.

Applied Materials, Inc. (AMAT) grew revenue by 4.4% over the past year. Growth has been modest.

Yes, Applied Materials, Inc. (AMAT) is profitable, generating $7.00B in net income for fiscal year 2025 (24.7% net margin).

Dividend & Returns

Yes, Applied Materials, Inc. (AMAT) pays a dividend with a yield of 0.54%. This makes it attractive for income-focused investors.

Applied Materials, Inc. (AMAT) has a return on equity (ROE) of 35.5%. This is excellent, indicating efficient use of shareholder capital.

Applied Materials, Inc. (AMAT) generated $5.70B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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