APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
230.45 EUR
+0.7 (+0.3%)
We assign a fundamental rating of 6 out of 10 to AP2. AP2 was compared to 65 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making AP2 a very profitable company, without any liquidiy or solvency issues. AP2 has a decent growth rate and is not valued too expensively. 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.
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 Return On Assets of 19.97%. This is amongst the best in the industry. AP2 outperforms 86.15% of its industry peers.
AP2's Return On Equity of 35.03% is amongst the best of the industry. AP2 outperforms 83.08% of its industry peers.
AP2's Return On Invested Capital of 25.99% is amongst the best of the industry. AP2 outperforms 86.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AP2 is significantly above the industry average of 15.14%.
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
AP2 has a better Profit Margin (23.88%) than 72.31% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.14%, AP2 is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
In the last couple of years the Operating Margin of AP2 has grown nicely.
The Gross Margin of AP2 (48.50%) is comparable to the rest of the 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.
AP2 has less shares outstanding than it did 1 year ago.
AP2 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AP2 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.00 indicates that AP2 is not in any danger for bankruptcy at the moment.
The Altman-Z score of AP2 (13.00) is better than 80.00% 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.
The Debt to FCF ratio of AP2 (1.08) is better than 72.31% 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.
AP2 has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: AP2 outperforms 41.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 13 |
ROIC/WACC2.49
WACC10.42%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
AP2's Current ratio of 2.50 is in line compared to the rest of the industry. AP2 outperforms 60.00% 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 has a Quick ratio of 1.79. This is in the better half of the industry: AP2 outperforms 63.08% of its industry peers.
| 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.
The Revenue has been growing slightly by 4.39% in the past 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.
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.
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 28.49, AP2 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AP2 indicates a somewhat cheap valuation: AP2 is cheaper than 72.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (26.28), we can say AP2 is valued inline with the index average.
AP2 is valuated quite expensively with a Price/Forward Earnings ratio of 27.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AP2 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AP2 to the average of the S&P500 Index (23.52), we can say AP2 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.49 | ||
| Fwd PE | 27.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AP2.
AP2's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.69 | ||
| EV/EBITDA | 23.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)10.3
PEG (5Y)1.61
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
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 (12/9/2025, 7:00:00 PM)
230.45
+0.7 (+0.3%)
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 Cap183.59B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts78
Price Target219.93 (-4.56%)
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 | 28.49 | ||
| Fwd PE | 27.7 | ||
| P/S | 7.47 | ||
| P/FCF | 36.69 | ||
| P/OCF | 27.73 | ||
| P/B | 10.95 | ||
| P/tB | 13.77 | ||
| EV/EBITDA | 23.24 |
EPS(TTM)8.09
EY3.51%
EPS(NY)8.32
Fwd EY3.61%
FCF(TTM)6.28
FCFY2.73%
OCF(TTM)8.31
OCFY3.61%
SpS30.86
BVpS21.04
TBVpS16.74
PEG (NY)10.3
PEG (5Y)1.61
Graham Number61.88
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 |
F-Score6
WACC10.42%
ROIC/WACC2.49
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 6 / 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 28.49 and the Price/Book (PB) ratio is 10.95.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 7 / 10.