Applied Materials Scores High in Guru Report Analysis

Applied Materials Inc. (AMAT) impressively rates 100% under the Patient Investor model, signaling strong investor interest. This high score indicates solid fundamentals and favorable stock valuation. Investors should consider these findings for their investment strategies.

Date: 12-01-2025

AI Rating: 8

Analysis of Applied Materials Inc.

The report outlines that Applied Materials Inc. (AMAT) scored 100% using the Patient Investor model, which reflects the company's robust fundamentals and attractive valuation. This rating is particularly significant for investors looking for stocks that showcase long-term profitability.

Earnings Predictability: AMAT passed this criterion, indicating that the company's earnings are expected to be stable and reliable over time. This characteristic is essential for investors seeking less volatile investments.

Debt Service: The company also passed the debt service test, which shows that AMAT is effectively managing its debt obligations. Low debt levels typically reduce financial risk, which is a positive sign for investors.

Return on Equity (ROE): The strong pass indicates that AMAT generates high returns on shareholders' equity, a favorable feature that can lead to higher market valuation and investability.

Free Cash Flow: A pass in this category reflects that AMAT is generating sufficient cash to cover its operating costs and capital expenditures, which is critical for ongoing business investment and shareholder returns.

Other Pass Criteria: The company has also excelled in using retained earnings, share repurchase strategies, initial rate of return, and expected return, all contributing positively to AMAT’s investment profile.

In summary, the overall scores demonstrate that Applied Materials holds a strong position across multiple core areas, suggesting potential stability and growth opportunities for investors, bolstered by Warren Buffett's strategy criteria.

Stocks: AMAT