Aureus
AExcellent

Applied Materials, Inc.(AMAT)

A

Financial data as of Oct 31, 2025Stable · Technology

FCF Margin20.1%Free Cash Flow / Revenue
Cash Conversion113.7%Operating CF / Net Income
Free Cash Flow$5.7B
Revenue$28.4B
Net Cash$191.0MCash exceeds debt
Debt / FCF1.2xManageable debt load
Current Ratio2.61Adequate short-term liquidity
YoY FCF Growth-5.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (20.1%, 1.2x)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (1.2x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (20.1%)
  • Excellent cash conversion (114%)
  • Net cash position ($0.2B)
  • Very low debt relative to cash flow (1.2x)
  • Strong liquidity (current ratio: 2.61)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin20.1%
Net Margin24.7%
Operating CF Margin28.1%
CapEx Ratio8.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$191.0MCash exceeds debt
Debt / FCF1.2xManageable debt load
Current Ratio2.61Strong liquidity
Debt / Equity0.35Low leverage

Quarterly FCF Trend

-5.8% YoYStable (-5.8%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameApplied Materials, Inc.
SectorTechnology
Free Cash Flow$5.7B
Revenue$28.4B
Net Income$7.0B
Operating Cash Flow$8.0B
Capital Expenditure$2.3B
FCF Margin20.1%
Cash Conversion Rate113.7%
Net Margin24.7%
Total Debt$7.0B
Total Cash$7.2B
Net Cash$191.0M
Current Ratio2.61
Debt / Equity0.35
Debt / FCF1.2x
YoY FCF Growth-5.8%
Positive Quarters5 of 5
Trend DirectionStable
Report DateOct 31, 2025
GradeA
Data SourceYahoo Finance