Security Analysis

Security Analysis

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Security Analysis
Security Analysis
Applied Materials (AMAT)

Applied Materials (AMAT)

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Value Stock Geek
Aug 10, 2025
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Security Analysis
Security Analysis
Applied Materials (AMAT)
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Key Statistics

EV/EBIT = 17.7x

ROE = 36.37%

Debt/Equity = 35%

FCF Yield = 4%

Dividend Yield = 1%

Market Cap = $148.36 billion

The Company

Applied Materials (AMAT) is a materials engineering company, providing high-tech equipment, software, and services essential for manufacturing semiconductors, advanced displays, and related technologies. They build the precision gear that turns silicon wafers into the brains of modern electronics.

The company supports chipmakers and display manufacturers with a broad portfolio of tools used in fabrication, alongside optimization services and software that improve production efficiency and yield.

Revenue streams include capital equipment sales, recurring service contracts for equipment maintenance and performance enhancement, and software solutions that optimize factory operations. These services are increasingly critical as semiconductor manufacturing grows more complex with the rise of technologies such as AI, 3D transistors, and advanced packaging.

Applied’s products are vital to the development of consumer electronics, data centers, electric vehicles, smart devices, and next-generation technologies like robotics, virtual reality, and clean energy. Its tools enable customers to produce more powerful, energy-efficient chips and thinner, higher-quality display screens used in everything from smartphones and laptops to smart cars and televisions.

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