Applied Materials, Inc. cash flow to debt ratio of 112.88% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Applied Materials, Inc.'s free cash flow has decreased 23.89% from $7.49B last year to $5.70B, signaling decreasing performance

Applied Materials, Inc.'s debt to equity ratio is 0.29, which means that the company's assets are healthy financed, signaling financial stability.

Applied Materials, Inc.'s debt has decreased relative to shareholder equity from 0.35 last year to 0.29 today, signaling strengthened financials

Applied Materials, Inc. has a net cash position, so leverage is healthy.

Applied Materials, Inc.'s interest coverage ratio of 33.96 indicates that earnings with good margin can cover interest payments on company debt

Applied Materials, Inc.'s profit margin was 26.41% last year and is 30.05% this year, signaling increasing performance

Applied Materials, Inc.'s short-term assets of $20.88B exceed its short-term liabilities of $8.00B

Applied Materials, Inc.'s return on assets of 21.29% is higher than the 5.00% threshold, indicating efficient asset utilization

Applied Materials, Inc.'s return on equity of 40.44%, is higher than 15.00%, indicating good performance

Applied Materials, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Applied Materials, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Applied Materials, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Applied Materials, Inc. has a free cash flow yield of 1.47%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Applied Materials, Inc.'s yearly earnings has decreased 2.49% since last year from $7.18B to $7.00B, signaling decreasing performance

Applied Materials, Inc.'s yearly revenue has increased 4.39% since last year from $27.18B to $28.37B, signaling increasing performance

ROIC 23.50% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Applied Materials, Inc.'s 3-year revenue CAGR of 3.23% is positive, indicating growing revenue over the past 3 years

Applied Materials, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Applied Materials, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Applied Materials, Inc. is overvalued relative to its fair value price of 127.06 based on Base Cash Flow Valuation (DCF) model

Applied Materials, Inc. has an earnings yield of 2.40%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Applied Materials, Inc. is overvalued relative to its fair value price of 85.49 based on Base EBITDA Valuation model

Applied Materials, Inc. has an EV/EBITDA ratio of 39.89x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Applied Materials, Inc. is overvalued relative to its fair value price of 219.12 based on Base Earnings Fair Value model

Applied Materials, Inc. has a PEG-ratio over 1 which is considered overvalued

Applied Materials, Inc. has a price-to-book ratio of 15.08x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Applied Materials, Inc. has a price-to-sales ratio of 12.53x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue