Qualtix Stock Brief
Applied Materials, Inc. (AMAT) stock analysis: business quality, valuation, and entry timing
Applied Materials is the largest supplier of equipment used to manufacture semiconductors. Demand follows chipmakers' capital spending cycles, so profitability across the cycle matters more than a single strong year. Public Qualtix model snapshot from 2026-10-26 for AMAT: business quality 66/100, above the model's stronger-company threshold and valuation Very Expensive. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates AMAT with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
AMAT public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 5.1% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 18.2% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 30.5% | Profitability margin | FMP, computed |
| Gross margin | 49.4% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 28.5% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 36.2% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $9.2B / Debt $7.3B | Balance-sheet context | FMP, reported |
| TTM P/E | 33.5x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 66/100, above the model's stronger-company threshold.
- Valuation is currently labeled Very Expensive, so the stock needs stronger business evidence or a better price to improve the setup.
Today's verdict
- Today's model verdict and Entry Timing for AMAT update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-07-26.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business quality clears the model's stronger-company threshold (66/100).
What weakens the current view
- Valuation is currently labeled Very Expensive, so price still matters.
- Beta of 1.59 signals higher market sensitivity and potential volatility.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Compare AMAT's Very Expensive valuation with sector peers and ask what growth or margin evidence would justify the premium.
- Compare AMAT with LRCX and NVDA to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.