APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - FRA:AP2 - US0382221051 - Common Stock
205.75 EUR
+3.15 (+1.55%)
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 54 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.
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's Return On Assets of 19.97% is amongst the best of the industry. AP2 outperforms 83.33% of its industry peers.
AP2 has a Return On Equity of 35.03%. This is in the better half of the industry: AP2 outperforms 79.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.38%, AP2 belongs to the top of the industry, outperforming 87.04% 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 15.08%.
| 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 72.22% of the companies in the same industry.
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 74.07% of the companies in the same industry.
In the last couple of years the Operating Margin of AP2 has grown nicely.
Looking at the Gross Margin, with a value of 48.50%, AP2 is in line with its industry, outperforming 55.56% 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-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
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 11.89. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AP2 (11.89) is better than 75.93% 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 has a better Debt to FCF ratio (1.08) than 72.22% of its industry peers.
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 62.96% 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 | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.89 |
ROIC/WACC1.93
WACC11.6%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.50, AP2 is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that AP2 should not have too much problems paying its short term obligations.
AP2 has a Quick ratio of 1.79. This is comparable to the rest of the industry: AP2 outperforms 57.41% 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.
AP2 shows a small growth in Revenue. In the last year, the Revenue has grown by 6.55%.
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
Based on estimates for the next years, AP2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.71% on average per year.
The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y9.91%
EPS Next 2Y5.78%
EPS Next 3Y8.7%
EPS Next 5Y10.71%
Revenue Next Year4.33%
Revenue Next 2Y3.45%
Revenue Next 3Y5.32%
Revenue Next 5Y7.44%
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 24.82, the valuation of AP2 can be described as rather expensive.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 72.22% of the companies in the same industry.
AP2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.52, AP2 is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AP2.
The average S&P500 Price/Forward Earnings ratio is at 22.50. AP2 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
AP2's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AP2 is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.51 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AP2 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)1.07
EPS Next 2Y5.78%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.08, AP2 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
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 2Y5.78%
EPS Next 3Y8.7%
FRA:AP2 (10/31/2025, 3:37:55 PM)
205.75
+3.15 (+1.55%)
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 Cap163.91B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.56
Price Target169.41 (-17.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend1.24
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)2.07%
PT rev (3m)-4.14%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-8.92%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 24.52 | ||
| P/S | 6.62 | ||
| P/FCF | 32.51 | ||
| P/OCF | 24.57 | ||
| P/B | 9.71 | ||
| P/tB | 12.2 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)8.29
EY4.03%
EPS(NY)8.39
Fwd EY4.08%
FCF(TTM)6.33
FCFY3.08%
OCF(TTM)8.37
OCFY4.07%
SpS31.1
BVpS21.2
TBVpS16.87
PEG (NY)2.5
PEG (5Y)1.07
Graham Number62.88
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 | 11.89 |
F-Score7
WACC11.6%
ROIC/WACC1.93
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 Y9.91%
EPS Next 2Y5.78%
EPS Next 3Y8.7%
EPS Next 5Y10.71%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.33%
Revenue Next 2Y3.45%
Revenue Next 3Y5.32%
Revenue Next 5Y7.44%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y7.47%
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 24.82 and the Price/Book (PB) ratio is 9.71.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.