Applied Materials Inc (AMAT, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $187.68 and a daily gain of 2.44%, despite a three-month decline of -21.01%, the company shows promising signs of substantial growth. A detailed analysis using the GF Score indicates that Applied Materials Inc is poised for significant future success.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better long-term returns. Applied Materials Inc boasts a GF Score of 94 out of 100, suggesting a high potential for outperformance based on the following components:
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 10/10
Understanding Applied Materials Inc's Business
Applied Materials Inc, with a market cap of $154.72 billion and annual sales of $26.85 billion, is the world's largest manufacturer of semiconductor wafer fabrication equipment. The company boasts a broad portfolio and holds a market share leadership in deposition. Its major customers include industry giants like TSMC, Intel, and Samsung, highlighting its pivotal role in the semiconductor industry.
Financial Strength Breakdown
Applied Materials Inc's financial robustness is evident through its impressive Interest Coverage ratio of 32.6 and an Altman Z-Score of 10.26, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.25.
Profitability Rank Breakdown
Applied Materials Inc's profitability is outstanding, with an Operating Margin increase from 22.93% in 2019 to 28.87% in 2023. The consistent rise in Gross Margin over the past five years further underscores its efficiency in converting revenue into profit. The company's solid financial health is also supported by a high Piotroski F-Score and a Predictability Rank of 4.0 stars.
Growth Rank Breakdown
Applied Materials Inc is recognized for its strong growth, with a 3-Year Revenue Growth Rate of 19%, outperforming 75.16% of its industry peers. The company's EBITDA has also seen significant growth, emphasizing its ongoing expansion and operational efficiency.
Conclusion
Considering Applied Materials Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
