APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
232.7 EUR
+2.5 (+1.09%)
AP2 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 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 decent growth rate and is not valued too expensively. This makes AP2 very considerable 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.
AP2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 19.97%, AP2 belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
AP2 has a Return On Equity of 35.03%. This is amongst the best in the industry. AP2 outperforms 83.08% of its industry peers.
With an excellent Return On Invested Capital value of 25.99%, AP2 belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin of 23.88%. This is in the better half of the industry: AP2 outperforms 72.31% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 48.50%, AP2 is in line with its industry, outperforming 47.69% 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.
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.
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 86.15% of its industry peers.
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 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 | 13.09 |
ROIC/WACC2.5
WACC10.39%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
AP2 has a Current ratio (2.50) which is in line with its industry peers.
A Quick Ratio of 1.79 indicates that AP2 should not have too much problems paying 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%.
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
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.
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
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
With a Price/Earnings ratio of 28.76, AP2 can be considered very expensive at the moment.
AP2's Price/Earnings ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 70.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (26.49), we can say AP2 is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.99, 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 23.69, AP2 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.76 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
73.85% 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 an expensive valuation of the company.
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
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.
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
19.73% of the earnings are spent on dividend by AP2. This is a low number and 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
WACC10.39%
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 28.76 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.