APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - FRA:AP2 - US0382221051 - Common Stock
160.88 EUR
-0.82 (-0.51%)
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 56 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. These ratings could make AP2 a good candidate 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.
In the past 5 years AP2 always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 19.97%, AP2 belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.03%, AP2 belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
AP2 has a Return On Invested Capital of 22.38%. This is amongst the best in the industry. AP2 outperforms 87.50% of its industry peers.
AP2 had an Average Return On Invested Capital over the past 3 years of 24.00%. This is significantly above the industry average of 14.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 22.38% |
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's Profit Margin of 23.88% is fine compared to the rest of the industry. AP2 outperforms 71.43% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 30.14%, AP2 is doing good in the industry, outperforming 75.00% 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 (48.50%) which is comparable to the rest of the industry.
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-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.
AP2 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.49 indicates that AP2 is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.49, AP2 belongs to the best of the industry, outperforming 80.36% of the companies in the same industry.
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 71.43% of its industry peers.
AP2 has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, AP2 is doing worse than 66.07% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for AP2, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 10.49 |
ROIC/WACC1.99
WACC11.26%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.50, AP2 is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
AP2 has a Quick Ratio of 1.79. This is a normal value and indicates that AP2 is financially healthy and should not expect problems in meeting its short term obligations.
AP2 has a Quick ratio (1.79) which is in line with 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 13.12% over the past year.
AP2 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
The Revenue has been growing by 13.22% on average over the past years. This is quite good.
EPS 1Y (TTM)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.36% on average over the next years. This is quite good.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue Next Year4.41%
Revenue Next 2Y3.63%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.86 indicates a rather expensive valuation of AP2.
AP2's Price/Earnings ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (27.38), we can say AP2 is valued slightly cheaper.
AP2 is valuated rather expensively with a Price/Forward Earnings ratio of 19.43.
AP2's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, AP2 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AP2 is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AP2 is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.01 | ||
| EV/EBITDA | 16.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AP2 does not grow enough to justify the current Price/Earnings ratio.
AP2 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)0.86
EPS Next 2Y6.31%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
AP2 has a Yearly Dividend Yield of 1.08%.
AP2's Dividend Yield is a higher than the industry average which is at 1.29.
With a Dividend Yield of 1.08, AP2 pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
On average, the dividend of AP2 grows each year by 12.01%, which is quite nice.
Dividend Growth(5Y)12.01%
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.
The dividend of AP2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
FRA:AP2 (9/19/2025, 7:00:00 PM)
160.88
-0.82 (-0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap128.16B
Analysts77.07
Price Target165.97 (3.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend1.23
Dividend Growth(5Y)12.01%
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)-6.79%
PT rev (3m)-6.54%
EPS NQ rev (1m)-11.19%
EPS NQ rev (3m)-10.4%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-8.56%
Revenue NQ rev (3m)-8.24%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 19.43 | ||
| P/S | 5.29 | ||
| P/FCF | 26.01 | ||
| P/OCF | 19.66 | ||
| P/B | 7.77 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)8.1
EY5.03%
EPS(NY)8.28
Fwd EY5.15%
FCF(TTM)6.19
FCFY3.84%
OCF(TTM)8.18
OCFY5.09%
SpS30.39
BVpS20.72
TBVpS16.48
PEG (NY)1.93
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 22.38% | ||
| ROICexc | 30.18% | ||
| ROICexgc | 37.64% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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-Score7
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 | 10.49 |
F-Score7
WACC11.26%
ROIC/WACC1.99
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)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.41%
Revenue Next 2Y3.63%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year16.07%
EBIT Next 3Y9.91%
EBIT Next 5Y5.84%
FCF growth 1Y-16.6%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-3.71%
OCF growth 3Y16.83%
OCF growth 5Y21.72%