Applied Materials Inc. (AMAT) Stock

Applied Materials Inc. trades at a P/E ratio of 22.27, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 19.34 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.97 indicates reasonable value when growth is considered.

With a beta of 1.66, Applied Materials Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 17% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 7.75 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Applied Materials Inc. achieves a profit margin of 24.10%, meaning it retains $24.10 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 30.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 36.40% and ROA at 15.90%, the company generates strong returns on invested capital.

Applied Materials Inc.'s revenue grew by 6.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 27.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Applied Materials Inc. offers a dividend yield of 1.00%, paying $1.66 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 8/21/2025.

The dividend sustainability can be assessed through the payout ratio - Applied Materials Inc. pays $1.66 per share in dividends against earnings of $8.22 per share, resulting in a payout ratio of 20.19%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 9/11/2025.

Applied Materials Inc. has a market capitalization of $147.03B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 802.50M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.

Applied Materials Inc.'s book value per share is $23.63, while the current stock price is $190.27, resulting in a price-to-book (P/B) ratio of 8.05. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

38 analysts cover AMAT with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $196.61 implies 3.3% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:6 Strong Buy, 21 Buy, 10 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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