APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
230.35 EUR
+0.6 (+0.26%)
We assign a fundamental rating of 6 out of 10 to AP2. AP2 was compared to 65 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 has a decent growth rate and is not valued too expensively. These ratings would make AP2 suitable for quality investing!
1. Profitability
1.1 Basic Checks
AP2 had positive earnings in the past year.
AP2 had a positive operating cash flow in the past year.
Each year in the past 5 years AP2 has been profitable.
Each year in the past 5 years AP2 had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.97%, AP2 belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
AP2's Return On Equity of 35.03% is amongst the best of the industry. AP2 outperforms 83.08% of its industry peers.
The Return On Invested Capital of AP2 (25.99%) is better than 86.15% of its industry peers.
AP2 had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 15.14%.
The last Return On Invested Capital (25.99%) for AP2 is above the 3 year average (25.04%), which is a sign of increasing profitability.
| 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
AP2's Profit Margin of 23.88% is fine compared to the rest of the industry. AP2 outperforms 72.31% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
The Operating Margin of AP2 (30.14%) is better than 78.46% of its industry peers.
AP2's Operating Margin has improved in the last couple of years.
The Gross Margin of AP2 (48.50%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AP2 has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AP2 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.
The debt/assets ratio for AP2 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.98 indicates that AP2 is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 12.98, AP2 is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of AP2 is 1.08, which is an excellent value as it means it would take AP2, only 1.08 years of fcf income to pay off all of its debts.
AP2 has a better Debt to FCF ratio (1.08) than 72.31% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
The Debt to Equity ratio of AP2 (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.98 |
ROIC/WACC2.5
WACC10.39%
2.3 Liquidity
AP2 has a Current Ratio of 2.50. This indicates that AP2 is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.50, AP2 perfoms like the industry average, outperforming 60.00% 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.
With a decent Quick ratio value of 1.79, AP2 is doing good in the industry, outperforming 63.08% of the companies in the same industry.
| 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.
Measured over the past years, AP2 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.65% on average per year.
AP2 shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
AP2 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.52% yearly.
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 11.04% yearly.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
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 quite expensively with a Price/Earnings ratio of 28.51.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
AP2's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 27.73, AP2 can be considered very expensive at the moment.
AP2's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, AP2 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 27.73 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AP2 indicates a somewhat cheap valuation: AP2 is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.73 | ||
| EV/EBITDA | 23.21 |
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.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)10.3
PEG (5Y)1.62
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.18, AP2 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
19.73% of the earnings are spent on dividend by AP2. This is a low number and 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 2Y10.86%
EPS Next 3Y8.55%
FRA:AP2 (12/9/2025, 5:05:26 PM)
230.35
+0.6 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.66%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap183.51B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.93 (-4.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.47
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)15.32%
PT rev (3m)31.56%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 27.73 | ||
| P/S | 7.47 | ||
| P/FCF | 36.73 | ||
| P/OCF | 27.76 | ||
| P/B | 10.97 | ||
| P/tB | 13.78 | ||
| EV/EBITDA | 23.21 |
EPS(TTM)8.08
EY3.51%
EPS(NY)8.31
Fwd EY3.61%
FCF(TTM)6.27
FCFY2.72%
OCF(TTM)8.3
OCFY3.6%
SpS30.82
BVpS21.01
TBVpS16.71
PEG (NY)10.3
PEG (5Y)1.62
Graham Number61.8
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 | 12.98 |
F-Score6
WACC10.39%
ROIC/WACC2.5
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 Y2.77%
EPS Next 2Y10.86%
EPS Next 3Y8.55%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.08%
Revenue Next 2Y7.16%
Revenue Next 3Y6.07%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year6.89%
EBIT Next 3Y9.34%
EBIT Next 5Y10.57%
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 28.51 and the Price/Book (PB) ratio is 10.97.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.