APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
FRA:AP2 - Deutsche Boerse Ag - US0382221051 - Common Stock - Currency: EUR
AP2 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 58 industry peers in the Semiconductors & Semiconductor Equipment industry. AP2 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AP2 is not valued too expensively and it also shows a decent growth rate. These ratings would make AP2 suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AP2 was profitable.
In the past year AP2 had a positive cash flow from operations.
Each year in the past 5 years AP2 has been profitable.
AP2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AP2's Return On Assets of 19.03% is amongst the best of the industry. AP2 outperforms 82.76% of its industry peers.
AP2 has a Return On Equity of 34.06%. This is in the better half of the industry: AP2 outperforms 75.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.53%, AP2 belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
AP2 had an Average Return On Invested Capital over the past 3 years of 24.00%. This is significantly above the industry average of 16.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROIC | 21.53% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)24%
ROIC(5y)23.04%
1.3 Margins
AP2 has a Profit Margin of 22.95%. This is in the better half of the industry: AP2 outperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
Looking at the Operating Margin, with a value of 29.22%, AP2 is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Operating Margin of AP2 has grown nicely.
AP2 has a Gross Margin (47.73%) which is in line with its industry peers.
In the last couple of years the Gross Margin of AP2 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% |
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
AP2 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AP2 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AP2 has been reduced compared to 5 years ago.
The debt/assets ratio for AP2 has been reduced compared to a year ago.
2.2 Solvency
AP2 has an Altman-Z score of 9.23. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
AP2 has a Altman-Z score of 9.23. This is amongst the best in the industry. AP2 outperforms 87.93% of its industry peers.
The Debt to FCF ratio of AP2 is 1.05, which is an excellent value as it means it would take AP2, only 1.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AP2 (1.05) is better than 84.48% of its industry peers.
AP2 has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AP2 (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 9.23 |
ROIC/WACC1.9
WACC11.31%
2.3 Liquidity
A Current Ratio of 2.68 indicates that AP2 has no problem at all paying its short term obligations.
The Current ratio of AP2 (2.68) is better than 67.24% of its industry peers.
AP2 has a Quick Ratio of 1.96. This is a normal value and indicates that AP2 is financially healthy and should not expect problems in meeting its short term obligations.
AP2's Quick ratio of 1.96 is fine compared to the rest of the industry. AP2 outperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
AP2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.33%, which is quite good.
AP2 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
AP2 shows a small growth in Revenue. In the last year, the Revenue has grown by 4.34%.
AP2 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.22% yearly.
EPS 1Y (TTM)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
3.2 Future
The Earnings Per Share is expected to grow by 11.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
EPS Next Y9.86%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
EPS Next 5Y11.44%
Revenue Next Year6.23%
Revenue Next 2Y6.31%
Revenue Next 3Y6.44%
Revenue Next 5Y8.06%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AP2 is valuated correctly with a Price/Earnings ratio of 16.98.
AP2's Price/Earnings ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 63.79% of the companies in the same industry.
AP2's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 14.61, which indicates a correct valuation of AP2.
74.14% of the companies in the same industry are more expensive than AP2, based on the Price/Forward Earnings ratio.
AP2 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
84.48% of the companies in the same industry are more expensive than AP2, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.71 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
AP2's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)0.73
EPS Next 2Y9.36%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
AP2 has a Yearly Dividend Yield of 1.06%.
AP2's Dividend Yield is a higher than the industry average which is at 1.50.
With a Dividend Yield of 1.06, AP2 pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of AP2 is nicely growing with an annual growth rate of 12.01%!
Dividend Growth(5Y)12.01%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
AP2 pays out 19.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of AP2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.74%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
FRA:AP2 (3/7/2025, 7:00:00 PM)
139.38
-1.8 (-1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap113.24B
Analysts79.02
Price Target203.35 (45.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.33
Dividend Growth(5Y)12.01%
DP19.74%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.97%
Min EPS beat(2)2.11%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)2.92%
Min EPS beat(4)2.11%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.87%
EPS beat(12)11
Avg EPS beat(12)4.88%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)-0.31%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-0.3%
PT rev (3m)-5.31%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.61 | ||
| P/S | 4.45 | ||
| P/FCF | 20.71 | ||
| P/OCF | 16.89 | ||
| P/B | 6.6 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 13.94 |
EPS(TTM)8.21
EY5.89%
EPS(NY)9.54
Fwd EY6.84%
FCF(TTM)6.73
FCFY4.83%
OCF(TTM)8.25
OCFY5.92%
SpS31.33
BVpS21.12
TBVpS16.57
PEG (NY)1.72
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROCE | 31.54% | ||
| ROIC | 21.53% | ||
| ROICexc | 31.26% | ||
| ROICexgc | 40.08% | ||
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% | ||
| FCFM | 21.48% |
ROA(3y)22.53%
ROA(5y)21.31%
ROE(3y)44.41%
ROE(5y)43.1%
ROIC(3y)24%
ROIC(5y)23.04%
ROICexc(3y)31.66%
ROICexc(5y)31.28%
ROICexgc(3y)41.29%
ROICexgc(5y)41.69%
ROCE(3y)34.44%
ROCE(5y)32.94%
ROICexcg growth 3Y-7.9%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y-6.23%
ROICexc growth 5Y6.64%
OM growth 3Y-2.49%
OM growth 5Y4.68%
PM growth 3Y1.14%
PM growth 5Y7.35%
GM growth 3Y0.09%
GM growth 5Y1.66%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 330.54% | ||
| Cap/Sales | 4.86% | ||
| Interest Coverage | 36.21 | ||
| Cash Conversion | 85.8% | ||
| Profit Quality | 93.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.23 |
F-Score6
WACC11.31%
ROIC/WACC1.9
Cap/Depr(3y)231.86%
Cap/Depr(5y)195.47%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.39%
Profit Quality(3y)95.26%
Profit Quality(5y)92.06%
High Growth Momentum
Growth
EPS 1Y (TTM)9.33%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%11.74%
EPS Next Y9.86%
EPS Next 2Y9.36%
EPS Next 3Y7.83%
EPS Next 5Y11.44%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.84%
Revenue Next Year6.23%
Revenue Next 2Y6.31%
Revenue Next 3Y6.44%
Revenue Next 5Y8.06%
EBIT growth 1Y5.54%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.81%
EBIT Next 3Y10.63%
EBIT Next 5YN/A
FCF growth 1Y45.43%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y45.22%
OCF growth 3Y16.83%
OCF growth 5Y21.72%