Applied Materials, Inc. Fundamental Analysis
Applied Materials, Inc. (4336.HK) shows moderate financial fundamentals with a PE ratio of 19.42, profit margin of 29.31%, and ROE of 39.78%. The company generates $28.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze 4336.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent4336.HK demonstrates superior asset utilization.
Valuation Score
Moderate4336.HK shows balanced valuation metrics.
Growth Score
Moderate4336.HK shows steady but slowing expansion.
Financial Health Score
Excellent4336.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent4336.HK achieves industry-leading margins.
Key Financial Metrics
Is 4336.HK Expensive or Cheap?
P/E Ratio
4336.HK trades at 19.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4336.HK's PEG of 5.10 indicates potential overvaluation.
Price to Book
The market values Applied Materials, Inc. at 6.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.28 times EBITDA. This signals the market has high growth expectations.
How Well Does 4336.HK Make Money?
Net Profit Margin
For every $100 in sales, Applied Materials, Inc. keeps $29.31 as profit after all expenses.
Operating Margin
Core operations generate 29.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.78 in profit for every $100 of shareholder equity.
ROA
Applied Materials, Inc. generates $21.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Applied Materials, Inc. generates strong operating cash flow of $7.94B, reflecting robust business health.
Free Cash Flow
Applied Materials, Inc. generates strong free cash flow of $5.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.68 in free cash annually.
FCF Yield
4336.HK converts 3.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How 4336.HK Stacks Against Its Sector Peers
| Metric | 4336.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.42 | 42.18 | Better (Cheaper) |
| ROE | 39.78% | 780.00% | Weak |
| Net Margin | 29.31% | 11011854821.00% | Weak |
| Debt/Equity | 0.27 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.51 | 4.88 | Strong Liquidity |
| ROA | 21.12% | 119.00% | Weak |
4336.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Applied Materials, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta