# Applied Materials Inc (AMAT) — Stock CV

Applied Materials Inc is a $403B technology company. Revenue grew 7.8% over the last year, it keeps 30¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 43.4× earnings — near the highest of its own history.

> Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem.

## Identity

- **Ticker**: AMAT
- **Sector**: Technology
- **Industry**: Semiconductors & Related Devices
- **Headquarters**: SANTA CLARA, CA
- **Employees**: 36 500
- **Website**: https://www.appliedmaterials.com
- **Market cap**: $403B
- **Last price**: $507.20
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $30.8B
- **Net income**: $9.27B
- **Free cash flow**: $5.62B
- **Net cash**: $2.02B
- **P/E**: 43.4
- **Revenue growth (YoY)**: 7.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 10 |
| Growth | 63 |
| Profitability | 100 |
| Health | 75 |
| Quality | 87 |
| Moat | 95 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +7.8% YoY
- [x] Profitable — $9.27B TTM
- [x] Profit growing — +5.2% YoY
- [x] Generates cash — $5.62B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $403B market cap
- [x] Not printing shares — -12.5% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 50/100
- [x] Pays a dividend — yield 0.38%
- [x] Valuation not extreme — P/E 43.4

## Experience (career milestones)

- **2026** — Applied Materials announced plans to invest $5 billion in India over the following decade under…
- **FY2024** — Best year on record: $7.18B net income
- **FY2020** — Became debt-free: cash now exceeds total debt
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $10.8B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **Sep 24, 2013** — Applied Materials then announced a planned merger with Tokyo Electron on September 24, 2013
- **2009** — Applied Materials acquired Semitool Inc. in December 2009, and announced its acquisition of Varian Semiconductor in…
- **2008** — Applied Materials purchased Baccini, an Italian company and designer of tools used in manufacturing…
- **Jun 27, 2001** — Applied Materials acquired Israeli company Oramir Semiconductor Equipment Ltd., a supplier of…
- **2000** — Etec Systems, Inc. was purchased
- **1996** — Applied Materials acquired two Israeli companies for an aggregate amount of $285 million: Opal…
- **1987** — Applied introduced a chemical vapor deposition (CVD) machine called the Precision 5000
- **1984** — Applied Materials became the first U.S. semiconductor equipment manufacturer to open its own technology…
- **1972** — McNeilly and others, Applied Materials went public in 1972 on the National Association of Securities Dealers…

## Strengths

- High gross margin (49.4%)
- Strongly profitable — 30.1% net margin
- Strong cash conversion — FCF is 18.2% of revenue
- Net cash position after subtracting debt from cash
- Interest covered 42.8× by operating earnings

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $23.1B | $5.89B | $4.77B |
| FY2022 | $25.8B | $6.53B | $4.61B |
| FY2023 | $26.5B | $6.86B | $7.59B |
| FY2024 | $27.2B | $7.18B | $7.49B |
| FY2025 | $28.4B | $7.00B | $5.70B |

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Source: https://stockcv.com/AMAT — derived from company filings; may be delayed or incomplete. Information, not investment advice.