APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
216 EUR
+2 (+0.93%)
AP2 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AP2 a very profitable company, without any liquidiy or solvency issues. AP2 has a correct valuation and a medium growth rate. This makes AP2 very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AP2 was profitable.
AP2 had a positive operating cash flow in the past year.
AP2 had positive earnings in each of the past 5 years.
In the past 5 years AP2 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.97%, AP2 belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Equity of AP2 (35.03%) is better than 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 25.99%, AP2 belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
AP2 had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 15.39%.
The 3 year average ROIC (25.04%) for AP2 is below the current ROIC(25.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 25.99% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
1.3 Margins
The Profit Margin of AP2 (23.88%) is better than 76.67% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
AP2's Operating Margin of 30.14% is fine compared to the rest of the industry. AP2 outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
AP2 has a Gross Margin (48.50%) which is in line with its industry peers.
AP2's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% |
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
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.
The number of shares outstanding for AP2 has been reduced compared to 1 year ago.
The number of shares outstanding for AP2 has been reduced compared to 5 years ago.
AP2 has a better debt/assets ratio than last year.
2.2 Solvency
AP2 has an Altman-Z score of 12.33. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AP2 (12.33) is better than 86.67% of its industry peers.
AP2 has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
AP2's Debt to FCF ratio of 1.08 is fine compared to the rest of the industry. AP2 outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
AP2 has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: AP2 outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.33 |
ROIC/WACC2.46
WACC10.55%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
AP2 has a Current ratio of 2.50. This is in the better half of the industry: AP2 outperforms 65.00% of its industry peers.
A Quick Ratio of 1.79 indicates that AP2 should not have too much problems paying its short term obligations.
AP2's Quick ratio of 1.79 is fine compared to the rest of the industry. AP2 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% over the past year.
The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
The Revenue has been growing by 10.52% on average over the past years. This is quite good.
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
3.2 Future
AP2 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.60% yearly.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 26.54, the valuation of AP2 can be described as expensive.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. AP2 is around the same levels.
A Price/Forward Earnings ratio of 25.90 indicates a quite expensive valuation of AP2.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AP2 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.12. AP2 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 25.9 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
AP2's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.21 | ||
| EV/EBITDA | 21.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)10.7
PEG (5Y)1.5
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, AP2 is not a good candidate for dividend investing.
AP2's Dividend Yield is a higher than the industry average which is at 1.14.
With a Dividend Yield of 0.84, AP2 pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of AP2 is nicely growing with an annual growth rate of 14.79%!
Dividend Growth(5Y)14.79%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
AP2 pays out 19.73% of its income as dividend. This is a sustainable payout ratio.
AP2's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
FRA:AP2 (11/27/2025, 5:28:00 PM)
216
+2 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap172.07B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target203.67 (-5.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.49
Dividend Growth(5Y)14.79%
DP19.73%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.29%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.57%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)3.7%
EPS beat(12)12
Avg EPS beat(12)5.12%
EPS beat(16)13
Avg EPS beat(16)3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.68%
Revenue beat(8)2
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)20.22%
PT rev (3m)21.84%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 25.9 | ||
| P/S | 6.96 | ||
| P/FCF | 34.21 | ||
| P/OCF | 25.85 | ||
| P/B | 10.21 | ||
| P/tB | 12.84 | ||
| EV/EBITDA | 21.45 |
EPS(TTM)8.14
EY3.77%
EPS(NY)8.34
Fwd EY3.86%
FCF(TTM)6.31
FCFY2.92%
OCF(TTM)8.35
OCFY3.87%
SpS31.02
BVpS21.15
TBVpS16.83
PEG (NY)10.7
PEG (5Y)1.5
Graham Number62.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 25.99% | ||
| ROICexc | 35.05% | ||
| ROICexgc | 43.72% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
ROA(3y)20.82%
ROA(5y)21.93%
ROE(3y)38%
ROE(5y)43.11%
ROIC(3y)25.04%
ROIC(5y)27.65%
ROICexc(3y)36.63%
ROICexc(5y)37.97%
ROICexgc(3y)47.26%
ROICexgc(5y)49.64%
ROCE(3y)31.01%
ROCE(5y)34.04%
ROICexgc growth 3Y-4.49%
ROICexgc growth 5Y0.83%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y3.53%
OM growth 3Y-0.37%
OM growth 5Y3.31%
PM growth 3Y-0.85%
PM growth 5Y3.24%
GM growth 3Y1.53%
GM growth 5Y1.71%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 436.66% | ||
| Cap/Sales | 6.58% | ||
| Interest Coverage | 36.08 | ||
| Cash Conversion | 85.1% | ||
| Profit Quality | 85.23% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 12.33 |
F-Score6
WACC10.55%
ROIC/WACC2.46
Cap/Depr(3y)345.96%
Cap/Depr(5y)276.93%
Cap/Sales(3y)5.51%
Cap/Sales(5y)4.49%
Profit Quality(3y)98.84%
Profit Quality(5y)89.65%
High Growth Momentum
Growth
EPS 1Y (TTM)8.78%
EPS 3Y6.91%
EPS 5Y17.65%
EPS Q2Q%-6.47%
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y6.43%
EBIT Next 5YN/A
FCF growth 1Y-11.3%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y0.63%
OCF growth 3Y13.81%
OCF growth 5Y15.91%
APPLIED MATERIALS INC / AP2.DE FAQ
What is the ChartMill fundamental rating of APPLIED MATERIALS INC (AP2.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to AP2.DE.
What is the valuation status for AP2 stock?
ChartMill assigns a valuation rating of 4 / 10 to APPLIED MATERIALS INC (AP2.DE). This can be considered as Fairly Valued.
What is the profitability of AP2 stock?
APPLIED MATERIALS INC (AP2.DE) has a profitability rating of 9 / 10.
What is the valuation of APPLIED MATERIALS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLIED MATERIALS INC (AP2.DE) is 26.54 and the Price/Book (PB) ratio is 10.21.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.