APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
FRA:AP2 - Deutsche Boerse Ag - US0382221051 - Common Stock - Currency: EUR
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. AP2 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
In the past year AP2 was profitable.
In the past year AP2 had a positive cash flow from operations.
AP2 had positive earnings in each of the past 5 years.
Each year in the past 5 years AP2 had a positive operating cash flow.
1.2 Ratios
AP2 has a better Return On Assets (20.09%) than 94.12% of its industry peers.
AP2 has a Return On Equity of 35.64%. This is amongst the best in the industry. AP2 outperforms 82.35% of its industry peers.
AP2's Return On Invested Capital of 22.19% is amongst the best of the industry. AP2 outperforms 86.27% 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 15.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROIC | 22.19% |
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 has a Profit Margin of 24.06%. This is in the better half of the industry: AP2 outperforms 76.47% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
AP2 has a better Operating Margin (29.66%) than 74.51% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
AP2's Gross Margin of 48.14% is in line compared to the rest of the industry. AP2 outperforms 54.90% of its industry peers.
In the last couple of years the Gross Margin of AP2 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AP2 is creating value.
Compared to 1 year ago, AP2 has less shares outstanding
The number of shares outstanding for AP2 has been reduced compared to 5 years ago.
Compared to 1 year ago, AP2 has an improved debt to assets ratio.
2.2 Solvency
AP2 has an Altman-Z score of 10.79. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.79, AP2 belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
AP2 has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.07, AP2 is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that AP2 is not too dependend on debt financing.
The Debt to Equity ratio of AP2 (0.33) is worse than 64.71% 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 | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 10.79 |
ROIC/WACC1.95
WACC11.36%
2.3 Liquidity
A Current Ratio of 2.46 indicates that AP2 has no problem at all paying its short term obligations.
With a Current ratio value of 2.46, AP2 perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
AP2 has a Quick Ratio of 1.76. This is a normal value and indicates that AP2 is financially healthy and should not expect problems in meeting its short term obligations.
AP2's Quick ratio of 1.76 is in line compared to the rest of the industry. AP2 outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
AP2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.77%, which is quite good.
Measured over the past years, AP2 shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.21% on average per year.
AP2 shows a small growth in Revenue. In the last year, the Revenue has grown by 5.99%.
Measured over the past years, AP2 shows a quite strong growth in Revenue. The Revenue has been growing by 13.22% on average per year.
EPS 1Y (TTM)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.18% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
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
AP2 is valuated rather expensively with a Price/Earnings ratio of 21.52.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 64.71% of the companies in the same industry.
AP2's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 19.28, AP2 is valued on the expensive side.
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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 19.28 |
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 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.15 | ||
| EV/EBITDA | 18.08 |
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)1.86
PEG (5Y)0.93
EPS Next 2Y8.99%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, AP2 pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, AP2 pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of AP2 is nicely growing with an annual growth rate of 12.01%!
Dividend Growth(5Y)12.01%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
AP2 pays out 19.40% 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.
DP19.4%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
FRA:AP2 (7/11/2025, 7:00:00 PM)
169.34
-0.94 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap135.90B
Analysts80
Price Target176.13 (4.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend1.24
Dividend Growth(5Y)12.01%
DP19.4%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.7%
Min EPS beat(2)1.29%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)2.49%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.2%
EPS beat(12)12
Avg EPS beat(12)5.37%
EPS beat(16)13
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)-4.12%
PT rev (3m)-9.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 19.28 | ||
| P/S | 5.66 | ||
| P/FCF | 27.15 | ||
| P/OCF | 21.34 | ||
| P/B | 8.39 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)7.87
EY4.65%
EPS(NY)8.78
Fwd EY5.19%
FCF(TTM)6.24
FCFY3.68%
OCF(TTM)7.93
OCFY4.69%
SpS29.89
BVpS20.18
TBVpS15.93
PEG (NY)1.86
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROCE | 32.5% | ||
| ROIC | 22.19% | ||
| ROICexc | 29.79% | ||
| ROICexgc | 37.38% | ||
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% | ||
| FCFM | 20.87% |
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 | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 386.2% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 37.36 | ||
| Cash Conversion | 85.26% | ||
| Profit Quality | 86.73% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 10.79 |
F-Score7
WACC11.36%
ROIC/WACC1.95
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)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
EPS Next Y11.59%
EPS Next 2Y8.99%
EPS Next 3Y9.51%
EPS Next 5Y10.33%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
Revenue Next Year6.23%
Revenue Next 2Y5.96%
Revenue Next 3Y6.3%
Revenue Next 5Y7.18%
EBIT growth 1Y8.89%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.87%
EBIT Next 3Y9.95%
EBIT Next 5Y6.82%
FCF growth 1Y-0.88%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y8.25%
OCF growth 3Y16.83%
OCF growth 5Y21.72%