APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
220.15 EUR
-0.45 (-0.2%)
AP2 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 61 industry peers in the Semiconductors & Semiconductor Equipment industry. AP2 gets an excellent profitability rating and is at the same time showing great financial health properties. 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
AP2 had positive earnings in the past year.
In the past year AP2 had a positive cash flow from operations.
In the past 5 years AP2 has always been profitable.
AP2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.97%, AP2 belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
AP2's Return On Equity of 35.03% is amongst the best of the industry. AP2 outperforms 83.61% of its industry peers.
AP2's Return On Invested Capital of 25.99% is amongst the best of the industry. AP2 outperforms 86.89% 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 14.58%.
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
Looking at the Profit Margin, with a value of 23.88%, AP2 is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
AP2's Profit Margin has improved in the last couple of years.
AP2 has a better Operating Margin (30.14%) than 77.05% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
With a Gross Margin value of 48.50%, AP2 perfoms like the industry average, outperforming 52.46% of the companies in the same 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
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.
The debt/assets ratio for AP2 has been reduced compared to a year ago.
2.2 Solvency
AP2 has an Altman-Z score of 12.71. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
AP2 has a Altman-Z score of 12.71. This is amongst the best in the industry. AP2 outperforms 81.97% 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.
The Debt to FCF ratio of AP2 (1.08) is better than 70.49% 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.
The Debt to Equity ratio of AP2 (0.32) is worse than 60.66% of its industry peers.
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 | 12.71 |
ROIC/WACC2.45
WACC10.61%
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 68.85% 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 68.85% 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.
Measured over the past years, AP2 shows a quite strong growth in Revenue. The Revenue has been growing by 10.52% on average per year.
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
Based on estimates for the next years, AP2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
Based on estimates for the next years, AP2 will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
AP2 is valuated quite expensively with a Price/Earnings ratio of 27.55.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 67.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, AP2 is valued at the same level.
A Price/Forward Earnings ratio of 26.81 indicates a quite expensive valuation of AP2.
AP2's Price/Forward Earnings is on the same level as the industry average.
AP2's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 26.81 |
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 a bit cheaper than 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.5 | ||
| EV/EBITDA | 22.48 |
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)9.96
PEG (5Y)1.56
EPS Next 2Y10.86%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
AP2 has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 0.79, AP2 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of AP2 grows each year by 14.79%, which is quite nice.
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.
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 (12/23/2025, 7:00:00 PM)
220.15
-0.45 (-0.2%)
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 Cap175.38B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.46
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)17.8%
PT rev (3m)32.51%
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)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 26.81 | ||
| P/S | 7.22 | ||
| P/FCF | 35.5 | ||
| P/OCF | 26.83 | ||
| P/B | 10.6 | ||
| P/tB | 13.32 | ||
| EV/EBITDA | 22.48 |
EPS(TTM)7.99
EY3.63%
EPS(NY)8.21
Fwd EY3.73%
FCF(TTM)6.2
FCFY2.82%
OCF(TTM)8.21
OCFY3.73%
SpS30.47
BVpS20.77
TBVpS16.53
PEG (NY)9.96
PEG (5Y)1.56
Graham Number61.11
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 | 12.71 |
F-Score6
WACC10.61%
ROIC/WACC2.45
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 27.55 and the Price/Book (PB) ratio is 10.6.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.