Applied MaterialsAMAT +0.53%85 OCF Yield % is 1.71 as of Jun. 24, 2026, which is 72% below its 10-year median of 6.06. GuruFocus rates AMAT with a GF Score™ of 85/100 and a GF Value™ of $217.42 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Applied Materials ranks better than 55.54% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Applied Materials OCF Yield % Related Terms
Applied Materials OCF Yield % Historical Data
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The historical data trend for Applied Materials's OCF Yield % 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.
For the Semiconductor Equipment & Materials subindustry, Applied Materials's OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Applied Materials's OCF Yield % falls into.
* 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 (AMAT) has a OCF Yield % of 1.71 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Applied Materials and its competitors. This is 72% below median its historical median of 6.06. Over the past decade, Applied Materials' OCF Yield % has ranged from 1.62 to 12.66. According to the industry distribution chart, Applied Materials ranks #457 out of 1028 companies in the Semiconductors industry, placing it in the top 44.5%.
Is Applied Materials' OCF Yield % too high?
Applied Materials' current OCF Yield % of 1.71 is 72% below median its 10-year median of 6.06. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 12.66. The Semiconductors industry median OCF Yield % is 1.30. Applied Materials' value of 1.71 is 31.5% above this industry median. Based on the distribution chart, Applied Materials ranks #457 out of 1028 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' OCF Yield % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #457 out of 1028 companies for OCF Yield %. This puts Applied Materials in the upper half of its industry. The industry median OCF Yield % is 1.30. Applied Materials' value of 1.71 is 31.5% above this benchmark. Historically, Applied Materials' own OCF Yield % has ranged from 1.62 to 12.66 over the past decade. While the company's 10-year median is 6.06 vs. the industry median of 1.30, 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 OCF Yield % for a Semiconductors company?
The median OCF Yield % among Semiconductors companies is 1.30, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current OCF Yield % of 1.71 is 31.5% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median OCF Yield % is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current OCF Yield % is 1.71, which is 72% below median its own 10-year median of 6.06. 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 (AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $217.42, compared to a current price of $588.97 — trading 170.9% above its estimated fair value. The current OCF Yield % is 1.71, which is 72% below median its 10-year median of 6.06 and 31.5% above the Semiconductors industry median of 1.30. Applied Materials' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Applied Materials (AMAT), the current OCF Yield % is 1.71 as of Jun. 24, 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 (AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of $588.97 is trading 170.9% above its estimated GF Value™ of $217.42.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for AMAT:
OCF Yield %: 1.71 (72% below median its 10-year median of 6.06)
GF Value™: $217.42 vs. price of $588.97 (170.9% above fair value)
Industry Position: 31.5% above the Semiconductors median (#457 of 1028)
No single metric tells the full story. See the 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.
85GF Score
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