Applied Materials, Inc. (AMAT) — Free Cash Flow Yield

Technology

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

MetricValue
FCF Yield1.4%
Technology Sector Avg FCF Yield4.0%
Annual Free Cash Flow$5.7B
Market Cap$402.7B
P/E Ratio43.7x

Applied Materials, Inc.'s FCF yield of 1.4% is below the Technology sector average (4.0%).

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Applied Materials (AMAT) FCF Analysis: $5.7B Cash Machine

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Frequently Asked Questions

What is Applied Materials, Inc.'s (AMAT) free cash flow yield?

Applied Materials, Inc.'s (AMAT) free cash flow yield is 1.4%. That is below the Technology sector average (4.0%).

Is AMAT's free cash flow yield good?

At 1.4%, AMAT's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.

How much free cash flow does Applied Materials, Inc. generate?

Applied Materials, Inc. generated $5.7B in free cash flow, against a market cap of $402.7B.

How is free cash flow yield calculated?

Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.

Data from public filings. Not investment advice. Calculate your own FCF yield →