APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
FRA:AP2 - US0382221051 - Common Stock
139.62 EUR
-0.2 (-0.14%)
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 53 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. These ratings could make AP2 a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year AP2 was profitable.
In the past year AP2 had a positive cash flow from operations.
In the past 5 years AP2 has always been profitable.
AP2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AP2 has a better Return On Assets (19.97%) than 88.68% of its industry peers.
The Return On Equity of AP2 (35.03%) is better than 83.02% 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 86.79% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AP2 is significantly above the industry average of 15.12%.
| 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
AP2 has a Profit Margin of 23.88%. This is in the better half of the industry: AP2 outperforms 71.70% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
AP2 has a better Operating Margin (30.14%) than 75.47% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
With a Gross Margin value of 48.50%, AP2 perfoms like the industry average, outperforming 58.49% of the companies in the same 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-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
The number of shares outstanding for AP2 has been reduced compared to 5 years ago.
The debt/assets ratio for AP2 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.62 indicates that AP2 is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 9.62, AP2 is doing good in the industry, outperforming 79.25% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.08, AP2 is in the better half of the industry, outperforming 75.47% 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 is not doing good in the industry: 60.38% of the companies in the same industry are doing better.
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 | 9.62 |
ROIC/WACC2
WACC11.21%
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 62.26% 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 (1.79) which is comparable to the rest of the 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 13.12%, which is quite good.
The Earnings Per Share has been growing by 23.21% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.55% in the past year.
Measured over the past years, AP2 shows a quite strong growth in Revenue. The Revenue has been growing by 13.22% on average per year.
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
AP2 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.36% yearly.
Based on estimates for the next years, AP2 will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue Next Year4.61%
Revenue Next 2Y3.79%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
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
With a Price/Earnings ratio of 17.13, AP2 is valued on the expensive side.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than the industry average as 77.36% of the companies are valued more expensively.
AP2 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
AP2 is valuated correctly with a Price/Forward Earnings ratio of 16.75.
Based on the Price/Forward Earnings ratio, AP2 is valued a bit cheaper than the industry average as 67.92% of the companies are valued more expensively.
AP2's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AP2 is valued cheaply inside the industry as 83.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.43 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)0.74
EPS Next 2Y6.31%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
AP2 has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
AP2's Dividend Yield is a higher than the industry average which is at 1.40.
Compared to an average S&P500 Dividend Yield of 2.45, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of AP2 is nicely growing with an annual growth rate of 12.01%!
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.
AP2's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.73%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
FRA:AP2 (9/10/2025, 7:00:00 PM)
139.62
-0.2 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap111.23B
Analysts77.07
Price Target167.17 (19.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.23
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)-5.41%
PT rev (3m)-5.87%
EPS NQ rev (1m)-11.12%
EPS NQ rev (3m)-9.74%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-8.53%
Revenue NQ rev (3m)-8.08%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 16.75 | ||
| P/S | 4.57 | ||
| P/FCF | 22.43 | ||
| P/OCF | 16.95 | ||
| P/B | 6.7 | ||
| P/tB | 8.42 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)8.15
EY5.84%
EPS(NY)8.33
Fwd EY5.97%
FCF(TTM)6.22
FCFY4.46%
OCF(TTM)8.24
OCFY5.9%
SpS30.58
BVpS20.85
TBVpS16.59
PEG (NY)1.67
PEG (5Y)0.74
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%
ROICexcg growth 3Y-7.9%
ROICexcg 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 | 9.62 |
F-Score7
WACC11.21%
ROIC/WACC2
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 Y10.28%
EPS Next 2Y6.31%
EPS Next 3Y8.38%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.61%
Revenue Next 2Y3.79%
Revenue Next 3Y5.25%
Revenue Next 5Y7.25%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year16.07%
EBIT Next 3Y9.91%
EBIT Next 5Y5.84%
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%