Applied Materials, Inc. · Semiconductor Equipment & Materials
FCF$5.3bB+
Rev+3.3%C+
D/E0.30B
P/E49.2xC+
PEG1.31B
55.2Score
$522.12$414.5B
1Y Target$629.09Analyst consensus · 35 analysts
5Y Target$921.04Compound horizon
10Y Target$1,366Long-dated conviction
FCF$5.3bTTMB+
FCF $5.3b — strong cash profile, above most peers
Rev+3.3%TTM YoYC+
Revenue +3.3% — steady but below market-beating range
D/E0.30B
D/E 0.30 — near the Technology debt median (≈60th pctile)
P/E49.2xC+
P/E 49.2 — above the Technology median (≈75th pctile)
PEG1.31B
PEG 1.31 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 55.2
Quality0.86
Growth0.69
Value0.28
Why this score
Raising its dividend
Durable high returns
Entry · Margin of safety
52-week rangeMid-range
29% off the 12-month high
vs DCF fair value397% aboveest. fair value ~$105
What the price assumes: free cash flow compounding above 60% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability35% · B+gross profit ÷ total assets (Novy-Marx)
ROIC20.8% · Areturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Semiconductor Equipment & Materials · market cap $414.5b. Down 29% from 52-week high of $739.67 — deep drawdown territory. 35 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $629.09 (implying +20% upside).
Moat
Net margin 29% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 36% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $414.5b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Beta 1.62 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 14.3x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $629.09 (35-analyst consensus) — fundamentals + valuation re-rating. 5 yr $921.04 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $1,366 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
AMAT vs the Top Picks average
Pillar
AMAT
Book avg
Diff
Quality
0.86
0.83
+0.03
Growth
0.69
0.92
-0.22
Value
0.28
0.75
-0.47
Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · AMAT
Trend
+8.7 over 37 daily scores
From 46.5 (Jun 22) → 55.2 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · AMAT
$
%
%
Shares to buy
3
Position size
$1,566
3.1% of portfolio
Stop price
$391.59
25% below $522.12
$ at risk if stopped
$391.59
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Applied Materials, Inc. (AMAT): score, valuation & FAQ
Applied Materials, Inc. (AMAT) is a Semiconductor Equipment & Materials company that scores 55.2 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are FCF (B+). On valuation, AMAT sits about 397% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade.
Is AMAT a good stock to buy?
Bull Rankings scores AMAT 55.2 out of 100 on its quality-growth model, which is a middling reading. That is driven by FCF (B+). A score is a quantitative screen of Applied Materials, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does AMAT score 55.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). AMAT earns its highest marks on FCF (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is AMAT overvalued or undervalued?
Based on $522.12, AMAT sits about 397% above our discounted-cash-flow fair value — the current price implies free-cash-flow growth above 60% a year for the next decade. It trades at a 49.2x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in AMAT?
Beta 1.62 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 14.3x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.