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 $213.55 and a recent daily gain of 4.14%, despite a three-month decline of -12.22%, the company shows significant potential for future growth. This optimism is further supported by the GF Score, which indicates that Applied Materials Inc is poised for substantial future success.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which ranges from 0 to 100, has proven its effectiveness in correlating with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a higher potential for returns. Applied Materials Inc boasts a GF Score of 93 out of 100, suggesting a strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 7/10
Understanding Applied Materials Inc's Business
Applied Materials Inc, with a market cap of $176.05 billion and annual sales of $26.85 billion, is the world's leading manufacturer of semiconductor wafer fabrication equipment. The company boasts a significant market share in deposition technologies and serves major global chipmakers like TSMC, Intel, and Samsung. Its broad portfolio and strategic market positioning underscore 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 10.99, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.25, highlighting efficient capital structure management.
Profitability and Growth Metrics
Applied Materials Inc's profitability is demonstrated by its increasing Operating Margin and Gross Margin over the past five years. The company's commitment to growth is evident from its 19% 3-Year Revenue Growth Rate, outperforming 75.03% of its industry peers. This growth trajectory is supported by a strong increase in EBITDA, emphasizing its expanding operational capabilities.
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.
