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Applied Materials, Inc. AMAT

TechnologySemiconductorsNASDAQ📅 Scored March 14, 2026
Price at analysis: $369.34
Crucible Score
58.8
C+
Quality × Value Composite
KQI — Quality
74.7
B+
Fundamental Quality Index
KVI — Value
39.3
D-
Valuation Attractiveness Index
Crucible Verdict — AMAT

Applied Materials delivers strong operational performance with 86-rated financial quality and a 97% earnings beat rate, but trades at a meaningful discount to fundamentals with poor value metrics dragging the overall score to C+. AMAT's semiconductor equipment leadership and solid moat durability provide defensive qualities, though limited diversification remains a key vulnerability in cyclical downturns.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
85.9
Growth Profile
60.2
Moat Durability
77.5
Management Effectiveness
74.5
Diversification & Resilience
49.2
Market Position
81.0
Weakest dimension: Diversification & Resilience (49.2)

◆ KVI Value Dimensions

DCF Margin of Safety
54.1
FCF Yield & Cash Returns
34.9
Relative Valuation
61.9
Growth-Adjusted Value
11.3
Historical Valuation
5.5
Macro Context
44.6

◆ DCF Valuation Scenarios

Bear Case
$248.72
Base Case
$390.15
Bull Case
$582.40
Price at Analysis
$369.34
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$248.725.0%27.0%13.3%
🟢 Base$390.158.0%30.0%12.3%
🟢 Bull$582.4012.0%33.0%11.3%
Key Assumptions: WACC derived from CAPM using 4.39% risk-free rate, 1.63 beta, and 5.5% ERP yielding ~13.4% cost of equity, blended with modest debt cost for WACC range of 11.3%-13.3% across scenarios. Revenue growth anchored to 5-year historical CAGR of ~5.3% with base case assuming moderate semiconductor capex cycle acceleration to 8%. Tax rate normalized to 15% reflecting AMAT's historical effective rate averaging 12-14% with some upward pressure from global minimum tax regimes. Operating margins held near historical ~29-30% range with modest variation across scenarios given AMAT's demonstrated stability.

◆ Financial Snapshot

Profitability

Gross Margin48.7%
Operating Margin29.1%
Net Margin27.8%
ROIC22.8%
ROE38.9%

Balance Sheet

Balance SheetCR: 2.71
Cash ConversionFCF/EPS: 0.79x
Capital IntensityCapex/Rev: 8.0%
Altman Z-Score14.35 (Safe)
Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR5.3% CAGR
Earnings CAGR4.4% CAGR
Growth ConsistencyCV: 1.19
Segment Breadth3/3 growing (100%)
Quarterly TrendRev↓, Margin↑
Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$392.78
Analysts Covering (Quarter)32
Avg Target (Last Year)$323.50
Analysts (Year)56

Leadership & Governance

CEOAjit Manocha · 9 years
CEO Ownership< 1%
Compensation96% performance-based
Insider ActivitySelling
Capital AllocationROIC 22.8% vs WACC 3.0%
Earnings Beat Rate97% (21/22)

◆ Company Profile

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.

CEO
Gary E. Dickerson
Employees
36000
Headquarters
Santa Clara, CA, US
IPO Date
March 17, 1980
Exchange
NASDAQ

◆ Related Companies in Our Universe

Other Technology companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+
MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 14, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny