APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
232.7 EUR
+2.5 (+1.09%)
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 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 correct valuation and a medium growth rate. 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.
In the past 5 years AP2 always reported a positive cash flow from operatings.
1.2 Ratios
AP2 has a better Return On Assets (19.97%) than 85.48% of its industry peers.
AP2 has a better Return On Equity (35.03%) than 82.26% of its industry peers.
AP2 has a Return On Invested Capital of 25.99%. This is amongst the best in the industry. AP2 outperforms 85.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AP2 is significantly above the industry average of 15.20%.
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
AP2's Profit Margin of 23.88% is fine compared to the rest of the industry. AP2 outperforms 72.58% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
AP2 has a Operating Margin of 30.14%. This is in the better half of the industry: AP2 outperforms 79.03% of its industry peers.
AP2's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.50%, AP2 is in line with its industry, outperforming 50.00% of the companies in the same 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-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.
AP2 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AP2 has less shares outstanding
Compared to 1 year ago, AP2 has an improved debt to assets ratio.
2.2 Solvency
AP2 has an Altman-Z score of 13.09. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
AP2 has a Altman-Z score of 13.09. This is amongst the best in the industry. AP2 outperforms 87.10% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.08, AP2 is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, AP2 perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 13.09 |
ROIC/WACC2.5
WACC10.38%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
The Current ratio of AP2 (2.50) is better than 64.52% 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 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
AP2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.78%, which is quite good.
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.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 4.39% in the last year.
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
The Earnings Per Share is expected to grow by 11.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.57% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 28.76, the valuation of AP2 can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AP2 indicates a somewhat cheap valuation: AP2 is cheaper than 70.97% of the companies listed in the same industry.
AP2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.99, AP2 can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AP2.
The average S&P500 Price/Forward Earnings ratio is at 23.69. AP2 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.76 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AP2.
72.58% 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 | 37.07 | ||
| EV/EBITDA | 23.49 |
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)10.4
PEG (5Y)1.63
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
AP2 has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, AP2 pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, AP2 pays less dividend than the S&P500 average, which is at 2.31.
| 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
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 2Y10.86%
EPS Next 3Y8.55%
FRA:AP2 (12/5/2025, 7:00:00 PM)
232.7
+2.5 (+1.09%)
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 Cap185.38B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.93 (-5.49%)
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 | 28.76 | ||
| Fwd PE | 27.99 | ||
| P/S | 7.54 | ||
| P/FCF | 37.07 | ||
| P/OCF | 28.02 | ||
| P/B | 11.07 | ||
| P/tB | 13.91 | ||
| EV/EBITDA | 23.49 |
EPS(TTM)8.09
EY3.48%
EPS(NY)8.31
Fwd EY3.57%
FCF(TTM)6.28
FCFY2.7%
OCF(TTM)8.31
OCFY3.57%
SpS30.84
BVpS21.02
TBVpS16.73
PEG (NY)10.4
PEG (5Y)1.63
Graham Number61.86
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 | 13.09 |
F-Score6
WACC10.38%
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 28.76 and the Price/Book (PB) ratio is 11.07.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.