Applied Materials, Inc. (AMAT)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and have durable competitive advantages. Applied Materials fits the first part: in fiscal Q3 2026, the quarter ended July 26, 2026, it reported revenue of $9.1 billion, net income of $2.5 billion, and diluted EPS of $3.17. That compares with revenue of $7.3 billion, net income of $1.8 billion, and EPS of $2.22 in fiscal Q3 2025. For FY2025, revenue was $28.4 billion, net income $7.0 billion, and EPS $8.66; FY2024 was $27.2 billion, $7.2 billion, and $8.61. The long arc is growth, but the last full year shows profit dipped slightly while sales rose, a reminder of cyclicality. The balance sheet is conservative: debt-to-equity of 0.29 and FairStock's Altman Z-Score of 15.18 suggest little solvency stress. FairStock calculates ROE of 41.07%, ROCE of 15.48%, and a Piotroski F-Score of 7/9. Still, price matters. At the close on 2026-10-13, the stock was $464.24, giving FairStock's P/E of 40.02, P/B of 14.38, EV/EBITDA of 31.70, and FCF yield of 1.5%. The Graham Number is $91.80, so the margin of safety is deeply negative. PEG of 0.94 is not demanding if growth persists, but this is a cyclical equipment maker, not a bond. The business is excellent; the price already reflects much of that excellence. I would want a wider gap between value and price before calling it compelling.

In plain English: Applied Materials makes the equipment and services that chipmakers use to build semiconductors. The business looks strong: sales, profits, and profit margins are high, and debt is modest. But the stock price looks expensive compared with the company's profits, accounting value, and cash flow, so simple value measures show little bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-26) · fiscal Q2 2026 10-Q (period ended 2026-04-26) · fiscal Q1 2026 10-Q (period ended 2026-01-25) · fiscal Q3 2025 10-Q (period ended 2025-07-27) · FY2025 10-K (period ended 2025-10-26) · FY2024 10-K (period ended 2024-10-27) · FY2023 10-K (period ended 2023-10-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer