APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
226.05 EUR
-2.35 (-1.03%)
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 62 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make AP2 a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year AP2 was profitable.
AP2 had a positive operating cash flow in the past year.
AP2 had positive earnings in each of the past 5 years.
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 85.48% of its industry peers.
AP2 has a better Return On Equity (35.03%) than 82.26% of its industry peers.
AP2 has a Return On Invested Capital of 25.99%. This is amongst the best in the industry. AP2 outperforms 85.48% 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 14.81%.
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
Looking at the Profit Margin, with a value of 23.88%, AP2 is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
In the last couple of years the Profit Margin of AP2 has grown nicely.
AP2 has a Operating Margin of 30.14%. This is in the better half of the industry: AP2 outperforms 79.03% of its industry peers.
AP2's Operating Margin has improved in the last couple of years.
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-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.
AP2 has less shares outstanding than it did 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 12.86. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.86, AP2 belongs to the best of the industry, outperforming 87.10% 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.
The Debt to FCF ratio of AP2 (1.08) is better than 75.81% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
AP2 has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 12.86 |
ROIC/WACC2.52
WACC10.32%
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's Current ratio of 2.50 is fine compared to the rest of the industry. AP2 outperforms 64.52% of its industry peers.
A Quick Ratio of 1.79 indicates that AP2 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.79, AP2 is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
AP2 shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
The Revenue has been growing by 10.52% on average over the past years. This is quite good.
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.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y9.73%
EPS Next 5Y11.04%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y5.97%
Revenue Next 5Y6.57%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 28.01, the valuation of AP2 can be described as expensive.
72.58% of the companies in the same industry are more expensive than AP2, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.37. AP2 is around the same levels.
AP2 is valuated quite expensively with a Price/Forward Earnings ratio of 27.32.
AP2's Price/Forward Earnings ratio is in line with the industry average.
AP2's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 27.32 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA is on the same level as the industry average.
AP2's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.08 | ||
| EV/EBITDA | 22.89 |
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)11.3
PEG (5Y)1.59
EPS Next 2Y8.57%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.14, AP2 pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.74, AP2 pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 2Y8.57%
EPS Next 3Y9.73%
FRA:AP2 (12/3/2025, 7:00:00 PM)
226.05
-2.35 (-1.03%)
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 Cap180.08B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target203.67 (-9.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.48
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)20.22%
PT rev (3m)21.84%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 27.32 | ||
| P/S | 7.34 | ||
| P/FCF | 36.08 | ||
| P/OCF | 27.27 | ||
| P/B | 10.77 | ||
| P/tB | 13.54 | ||
| EV/EBITDA | 22.89 |
EPS(TTM)8.07
EY3.57%
EPS(NY)8.27
Fwd EY3.66%
FCF(TTM)6.26
FCFY2.77%
OCF(TTM)8.29
OCFY3.67%
SpS30.78
BVpS20.98
TBVpS16.69
PEG (NY)11.3
PEG (5Y)1.59
Graham Number61.72
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 | 12.86 |
F-Score6
WACC10.32%
ROIC/WACC2.52
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 Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y9.73%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y5.97%
Revenue Next 5Y6.57%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y9.06%
EBIT Next 5Y10.49%
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 28.01 and the Price/Book (PB) ratio is 10.77.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.