1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Applied Materials's 1-Year ROIIC % for the quarter that ended in Apr. 2026 was 8.61%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Applied Materials's 1-Year ROIIC % or its related term are showing as below:
AMAT's 1-Year ROIIC % is ranked better than 53.41% of 996
companies
in the Semiconductors industry
Industry Median: 4.965
vs AMAT: 8.61
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Applied Materials 1-Year ROIIC % Related Terms
Applied Materials 1-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Applied Materials's 1-Year ROIIC % 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.
AMAT vs LRCX, KLAC, TER: 1-Year ROIIC % Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Applied Materials's 1-Year ROIIC % falls into.
Applied Materials's 1-Year ROIIC % for the quarter that ended in Apr. 2026 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 7153.3988 (Apr. 2026) - 6770.7575 (Apr. 2025) )
/
( 27919 (Apr. 2026) - 23474 (Apr. 2025) )
=
382.6413
/
4445
=
8.61%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Applied Materials (AMAT) has a 1-Year ROIIC % of 8.61 as of Apr. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Applied Materials and its competitors. According to the industry distribution chart, Applied Materials ranks #464 out of 996 companies in the Semiconductors industry, placing it in the top 46.6%.
Is Applied Materials' 1-Year ROIIC % too high?
Applied Materials' current 1-Year ROIIC % is 8.61. The Semiconductors industry median 1-Year ROIIC % is 4.97. Applied Materials' value of 8.61 is 73.4% above this industry median. Based on the distribution chart, Applied Materials ranks #464 out of 996 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' 1-Year ROIIC % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #464 out of 996 companies for 1-Year ROIIC %. This puts Applied Materials in the upper half of its industry. The industry median 1-Year ROIIC % is 4.97. Applied Materials' value of 8.61 is 73.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year ROIIC % for a Semiconductors company?
The median 1-Year ROIIC % among Semiconductors companies is 4.97, based on 996 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current 1-Year ROIIC % of 8.61 is 73.4% 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 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median 1-Year ROIIC % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current 1-Year ROIIC % is 8.61. 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 $217.76, compared to a current price of $626.84 — trading 187.9% above its estimated fair value. The current 1-Year ROIIC % is 8.61 and 73.4% above the Semiconductors industry median of 4.97. 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 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For Applied Materials (AMAT), the current 1-Year ROIIC % is 8.61 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 (AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of $626.84 is trading 187.9% above its estimated GF Value™ of $217.76.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for AMAT:
1-Year ROIIC %: 8.61
GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
Industry Position: 73.4% above the Semiconductors median (#464 of 996)
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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