APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - FRA:AP2 - US0382221051 - Common Stock
192.56 EUR
+0.22 (+0.11%)
AP2 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 62 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. With these ratings, AP2 could be worth investigating further 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.
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
The Return On Assets of AP2 (19.97%) is better than 90.32% of its industry peers.
AP2's Return On Equity of 35.03% is amongst the best of the industry. AP2 outperforms 87.10% of its industry peers.
The Return On Invested Capital of AP2 (22.38%) is better than 90.32% 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 14.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROIC | 22.38% |
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
Looking at the Profit Margin, with a value of 23.88%, AP2 is in the better half of the industry, outperforming 77.42% 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 77.42% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
AP2 has a Gross Margin (48.50%) which is comparable to the rest of the 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-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
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.
Compared to 5 years ago, AP2 has less shares outstanding
The debt/assets ratio for AP2 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.54 indicates that AP2 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.54, AP2 belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.08, AP2 is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
AP2's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. AP2 is outperformed by 62.90% of its industry peers.
Although AP2 does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.54 |
ROIC/WACC2.11
WACC10.61%
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.
AP2 has a Current ratio of 2.50. This is comparable to the rest of the industry: AP2 outperforms 58.06% of its industry peers.
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.
AP2's Quick ratio of 1.79 is in line compared to the rest of the industry. AP2 outperforms 59.68% 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 13.12%, 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.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
AP2 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.22% yearly.
EPS 1Y (TTM)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.06% on average over the next years.
EPS Next Y9.78%
EPS Next 2Y5.58%
EPS Next 3Y8.64%
EPS Next 5Y10.23%
Revenue Next Year4.26%
Revenue Next 2Y3.32%
Revenue Next 3Y5.43%
Revenue Next 5Y7.06%
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
A Price/Earnings ratio of 23.37 indicates a rather expensive valuation of AP2.
AP2's Price/Earnings ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 67.74% of the companies in the same industry.
AP2's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 23.18, AP2 is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AP2.
AP2's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 23.18 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA is on the same level as the industry average.
79.03% 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 | 30.61 | ||
| EV/EBITDA | 19.31 |
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)2.39
PEG (5Y)1.01
EPS Next 2Y5.58%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.31, AP2 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of AP2 grows each year by 12.01%, which is quite nice.
Dividend Growth(5Y)12.01%
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 2Y5.58%
EPS Next 3Y8.64%
FRA:AP2 (11/14/2025, 5:23:49 PM)
192.56
+0.22 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap153.40B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.07
Price Target190.71 (-0.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.25
Dividend Growth(5Y)12.01%
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)12.57%
PT rev (3m)7.11%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 23.18 | ||
| P/S | 6.23 | ||
| P/FCF | 30.61 | ||
| P/OCF | 23.13 | ||
| P/B | 9.14 | ||
| P/tB | 11.49 | ||
| EV/EBITDA | 19.31 |
EPS(TTM)8.24
EY4.28%
EPS(NY)8.31
Fwd EY4.31%
FCF(TTM)6.29
FCFY3.27%
OCF(TTM)8.32
OCFY4.32%
SpS30.91
BVpS21.07
TBVpS16.77
PEG (NY)2.39
PEG (5Y)1.01
Graham Number62.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 35.03% | ||
| ROCE | 32.75% | ||
| ROIC | 22.38% | ||
| ROICexc | 30.18% | ||
| ROICexgc | 37.64% | ||
| OM | 30.14% | ||
| PM (TTM) | 23.88% | ||
| GM | 48.5% | ||
| FCFM | 20.35% |
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%
ROICexgc growth 3Y-7.9%
ROICexgc 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 | 0.32 | ||
| 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 | 11.54 |
F-Score7
WACC10.61%
ROIC/WACC2.11
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)13.12%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%16.98%
EPS Next Y9.78%
EPS Next 2Y5.58%
EPS Next 3Y8.64%
EPS Next 5Y10.23%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.26%
Revenue Next 2Y3.32%
Revenue Next 3Y5.43%
Revenue Next 5Y7.06%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y6.9%
FCF growth 1Y-16.6%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y-3.71%
OCF growth 3Y16.83%
OCF growth 5Y21.72%
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 8 / 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 23.37 and the Price/Book (PB) ratio is 9.14.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.