Applied Materials Inc (AMAT, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance and promising market position. With a current share price of $199.68 and a recent daily gain of 1.47%, despite a three-month decline of -14.86%, the company shows significant resilience and potential for growth. A detailed analysis using the GF Score indicates that Applied Materials Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Applied Materials Inc boasts a GF Score of 94 out of 100, indicating a high potential for market outperformance.
Understanding Applied Materials Inc's Business
Applied Materials Inc, with a market cap of $164.62 billion and annual sales of $26.85 billion, is the world's largest manufacturer of semiconductor wafer fabrication equipment. The company enjoys a leadership position in deposition technologies and serves major chipmakers like TSMC, Intel, and Samsung. Its broad product portfolio and strategic focus on high-demand sectors position it well within the competitive semiconductor industry.
Financial Strength Breakdown
Applied Materials Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 32.6 and an Altman Z-Score of 10.71, indicating low risk of financial distress. The company's strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.25, showcasing its prudent financial practices and stability.
Profitability Rank Breakdown
Applied Materials Inc's profitability is top-notch, with an Operating Margin increase from 22.93% in 2019 to 28.87% in 2023. This consistent improvement highlights the company's efficiency in converting revenues into profits. Additionally, its Gross Margin has remained strong, further affirming its market competitiveness and operational effectiveness.
Growth Rank Breakdown
Applied Materials Inc is recognized for its commitment to growth, with a 3-Year Revenue Growth Rate of 19%, outperforming 75.21% of its industry peers. The company's EBITDA has also seen significant growth, underscoring its expanding operational capabilities and market reach.
Conclusion
Considering Applied Materials Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for robust investment opportunities may find Applied Materials Inc an attractive option.
For more insights and to discover other companies with strong GF Scores, visit our 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.
