Applied MaterialsMEX:AMAT +10.30%84 Interest Coverage is 36.57 as of Apr. 2026, which is 45% above its 10-year median of 25.20. GuruFocus rates MEX:AMAT with a GF Score™ of 84/100 and a GF Value™ of MXN3,716.26 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 638 Semiconductors companies, Applied Materials ranks better than 56.11% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Applied Materials's
Operating Income
for the
three
months ended in Apr. 2026 was MXN44,193 Mil. Applied Materials's Interest Expense for the
three
months ended in Apr. 2026 was MXN-1,209 Mil.
Applied Materials's interest coverage for the quarter that ended in Apr. 2026 was 36.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Applied Materials's Interest Coverage or its related term are showing as below:
MEX:AMAT'
s Interest Coverage Range Over the Past 10 Years
Min: 13.88 Med: 25.2 Max: 34.14
Current: 31.8
MEX:AMAT's Interest Coverage is ranked better than 56.11% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs MEX:AMAT: 31.80
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Applied Materials Interest Coverage Related Terms
Applied Materials Interest Coverage Historical Data
* Premium members only.
The historical data trend for Applied Materials's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:AMAT vs LRCX, KLAC, TER: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Materials Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Applied Materials's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Materials (MEX:AMAT) has a Interest Coverage of 36.57 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Materials and its competitors. This is 45% above median its historical median of 25.20. Over the past decade, Applied Materials' Interest Coverage has ranged from 13.88 to 34.14. According to the industry distribution chart, Applied Materials ranks #280 out of 638 companies in the Semiconductors industry, placing it in the top 43.9%.
Is Applied Materials' Interest Coverage too high?
Applied Materials' current Interest Coverage of 36.57 is 45% above median its 10-year median of 25.20. Over the past 10 years, this metric has ranged from a low of 13.88 to a high of 34.14. The Semiconductors industry median Interest Coverage is 20.23. Applied Materials' value of 36.57 is 80.8% above this industry median. Based on the distribution chart, Applied Materials ranks #280 out of 638 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Applied Materials has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Interest Coverage compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #280 out of 638 companies for Interest Coverage. This puts Applied Materials in the upper half of its industry. The industry median Interest Coverage is 20.23. Applied Materials' value of 36.57 is 80.8% above this benchmark. Historically, Applied Materials' own Interest Coverage has ranged from 13.88 to 34.14 over the past decade. While the company's 10-year median is 25.20 vs. the industry median of 20.23, Applied Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Interest Coverage of 36.57 is 80.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Interest Coverage is 36.57, which is 45% above median its own 10-year median of 25.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (MEX:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,716.26, compared to a current price of MXN11,400.00 — trading 206.8% above its estimated fair value. The current Interest Coverage is 36.57, which is 45% above median its 10-year median of 25.20 and 80.8% above the Semiconductors industry median of 20.23. Applied Materials' overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Applied Materials (MEX:AMAT), the current Interest Coverage is 36.57 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Materials (MEX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of MXN11,400.00 is trading 206.8% above its estimated GF Value™ of MXN3,716.26.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for MEX:AMAT:
Interest Coverage: 36.57 (45% above median its 10-year median of 25.20)
GF Value™: MXN3,716.26 vs. price of MXN11,400.00 (206.8% above fair value)
Industry Position: 80.8% above the Semiconductors median (#280 of 638)
No single metric tells the full story. See the MEX:AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
84GF Score
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