Aureus
AExcellent

Applied Materials, Inc.(AMAT)

A

Financial data as of Oct 31, 2025Declining · Technology

FCF Margin17.7%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 / FCF1.4xManageable debt load
Current Ratio2.61Adequate short-term liquidity
YoY FCF Growth-95.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (17.7%, 1.4x)
→
-1Significant YoY FCF decline (-95.5%)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (1.4x)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.7%)
  • Excellent cash conversion (114%)
  • Net cash position ($0.2B)
  • Very low debt relative to cash flow (1.4x)
  • Strong liquidity (current ratio: 2.61)

Concerns

  • Significant YoY FCF decline (-95.5%)
SBC-adjusted FCF used — $0.7B stock-based compensation (12% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.7%
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 / FCF1.4xManageable debt load
Current Ratio2.61Strong liquidity
Debt / Equity0.35Low leverage

Quarterly FCF Trend

-95.5% YoYDeclining (-95.5%)

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 Margin17.7%
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 / FCF1.4x
YoY FCF Growth-95.5%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateOct 31, 2025
GradeA
Data SourceYahoo Finance

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