Applied Materials has the Profitability Rank of 10. It has a higher profitability and may stay that way.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Applied Materials Profitability Rank Related Terms
XSWX:AMAT vs LRCX, KLAC, TER: Profitability Rank Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Applied Materials's Profitability Rank falls into.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Applied Materials has the Profitability Rank of 10. It has a higher profitability and may stay that way.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (XSWX:AMAT) has a Profitability Rank of 10 as of Apr. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Applied Materials and its competitors. This is near median its historical median of 10.00. Over the past decade, Applied Materials' Profitability Rank has ranged from 7.00 to 10.00.
Is Applied Materials' Profitability Rank too high?
Applied Materials' current Profitability Rank of 10 is near median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Applied Materials has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Profitability Rank compare to LRCX and KLAC?
Applied Materials' Profitability Rank of 10 can be compared against companies in the Semiconductors industry. Historically, Applied Materials' own Profitability Rank has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Semiconductors company?
A good Profitability Rank depends on the Semiconductors industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Applied Materials and its competitors. Applied Materials's current Profitability Rank is 10, which is near median its own 10-year median of 10.00. 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 (XSWX:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF170.13, compared to a current price of CHF484.45 — trading 184.8% above its estimated fair value. The current Profitability Rank is 10, which is near median its 10-year median of 10.00. Applied Materials' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Profitability Rank is 10 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 (XSWX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of CHF484.45 is trading 184.8% above its estimated GF Value™ of CHF170.13.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for XSWX:AMAT:
Profitability Rank: 10 (near median its 10-year median of 10.00)
GF Value™: CHF170.13 vs. price of CHF484.45 (184.8% above fair value)
No single metric tells the full story. See the XSWX: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.
86GF Score
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Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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