APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
203.1 EUR
+3.05 (+1.52%)
We assign a fundamental rating of 7 out of 10 to AP2. AP2 was compared to 60 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 correct valuation and a medium growth rate. This makes AP2 very considerable 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
The Return On Assets of AP2 (19.97%) is better than 88.33% of its industry peers.
AP2 has a better Return On Equity (35.03%) than 85.00% of its industry peers.
AP2 has a better Return On Invested Capital (25.99%) than 88.33% 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 15.39%.
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 better Profit Margin (23.88%) than 78.33% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
AP2 has a Operating Margin of 30.14%. This is amongst the best in the industry. AP2 outperforms 81.67% of its industry peers.
AP2's Operating Margin has improved in the last couple of years.
AP2's Gross Margin of 48.50% is fine compared to the rest of the industry. AP2 outperforms 61.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AP2 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 11.79. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
AP2 has a Altman-Z score of 11.79. This is amongst the best in the industry. AP2 outperforms 81.67% of its industry peers.
The Debt to FCF ratio of AP2 is 1.08, which is an excellent value as it means it would take AP2, only 1.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.08, AP2 is doing good in the industry, outperforming 78.33% of the companies in the same industry.
AP2 has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.32, AP2 perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.79 |
ROIC/WACC2.46
WACC10.56%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
The Current ratio of AP2 (2.50) is better than 66.67% 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.
With a decent Quick ratio value of 1.79, AP2 is doing good in the industry, outperforming 68.33% 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.
AP2 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.65% yearly.
The Revenue has been growing slightly by 4.39% in the past year.
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
Based on estimates for the next years, AP2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.78% yearly.
EPS Next Y2.48%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
EPS Next 5Y10.6%
Revenue Next Year2.39%
Revenue Next 2Y6.02%
Revenue Next 3Y6.01%
Revenue Next 5Y7.78%
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 24.89, AP2 is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AP2 indicates a somewhat cheap valuation: AP2 is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (25.98), we can say AP2 is valued inline with the index average.
A Price/Forward Earnings ratio of 24.29 indicates a rather expensive valuation of AP2.
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 35.79, AP2 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 24.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AP2 is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AP2 is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.08 | ||
| EV/EBITDA | 19.97 |
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)10.04
PEG (5Y)1.41
EPS Next 2Y8.57%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
AP2 has a yearly dividend return of 0.84%, which is pretty low.
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 0.84, AP2 pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of AP2 grows each year by 14.79%, which is quite nice.
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.
The dividend of AP2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y8.57%
EPS Next 3Y8.03%
FRA:AP2 (11/25/2025, 4:53:16 PM)
203.1
+3.05 (+1.52%)
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 Cap161.80B
Revenue(TTM)28.37B
Net Income(TTM)6.83B
Analysts77.07
Price Target203.67 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.49
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)-3.37%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 24.29 | ||
| P/S | 6.53 | ||
| P/FCF | 32.08 | ||
| P/OCF | 24.24 | ||
| P/B | 9.58 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 19.97 |
EPS(TTM)8.16
EY4.02%
EPS(NY)8.36
Fwd EY4.12%
FCF(TTM)6.33
FCFY3.12%
OCF(TTM)8.38
OCFY4.13%
SpS31.11
BVpS21.21
TBVpS16.87
PEG (NY)10.04
PEG (5Y)1.41
Graham Number62.4
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 | 11.79 |
F-Score6
WACC10.56%
ROIC/WACC2.46
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 3Y8.03%
EPS Next 5Y10.6%
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 3Y6.01%
Revenue Next 5Y7.78%
EBIT growth 1Y10.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year8.26%
EBIT Next 3Y6.43%
EBIT Next 5YN/A
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 24.89 and the Price/Book (PB) ratio is 9.58.
Can you provide the financial health for AP2 stock?
The financial health rating of APPLIED MATERIALS INC (AP2.DE) is 8 / 10.