Applied Materials, Inc. (AMAT) stock analysis
Company overview and business model
Source fact: 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.
Classification: NASDAQ · Technology · Semiconductor Equipment & Materials
Revenue and growth
Source fact: Revenue was USD 28.37 billion for the period ending 2025-10-31.
Caverian calculation: Revenue changed +4.4% (FY2025 vs FY2024).
Profitability
Source fact: Net income was USD 7.00 billion in the latest reported period.
Source metric: Reported net margin was 24.7%.
Balance sheet and liquidity
Source fact: Cash and equivalents were USD 7.24 billion.
Source fact: Total debt was USD 7.05 billion.
Source metric: Current ratio was 2.61x.
Cash-flow analysis
Source fact: Operating cash flow was USD 7.96 billion.
Source fact: Free cash flow was USD 5.70 billion.
Valuation
Source metrics: Trailing P/E 42.40x; Forward P/E 26.84x; Price to book 15.25x; Price to sales 12.68x; EV/EBITDA 38.53x.
Caverian model output: Value score was 33/100.
Competitive position
Classification: Peer context: Semiconductor Equipment & Materials within Technology.
Caverian model output: Quality score was 82/100.
Caverian model output: Growth score was 58/100.
Material risks
Caverian model interpretation: Watch out: price swings more than the broader market (beta 1.6).
Caverian calculation: Altman Z-score was 18.97 (safe zone).
Caverian calculation: Piotroski F-score was 6/9.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles