APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
FRA:AP2 - Deutsche Boerse Ag - US0382221051 - Common Stock - Currency: EUR
Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 51 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 decent growth rate and is not valued too expensively. With these ratings, AP2 could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
AP2 had positive earnings in the past year.
In the past year AP2 had a positive cash flow from operations.
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
The Return On Assets of AP2 (19.03%) is better than 86.27% of its industry peers.
AP2 has a better Return On Equity (34.06%) than 78.43% of its industry peers.
With an excellent Return On Invested Capital value of 21.53%, AP2 belongs to the best of the industry, outperforming 86.27% 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 15.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROIC | 21.53% |
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's Profit Margin of 22.95% is fine compared to the rest of the industry. AP2 outperforms 68.63% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
AP2 has a Operating Margin of 29.22%. This is in the better half of the industry: AP2 outperforms 74.51% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
Looking at the Gross Margin, with a value of 47.73%, AP2 is in line with its industry, outperforming 52.94% of the companies in the same industry.
AP2's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% |
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
AP2 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AP2 has less shares outstanding
AP2 has less shares outstanding than it did 5 years ago.
AP2 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.73 indicates that AP2 is not in any danger for bankruptcy at the moment.
AP2's Altman-Z score of 9.73 is amongst the best of the industry. AP2 outperforms 88.24% of its industry peers.
The Debt to FCF ratio of AP2 is 1.05, which is an excellent value as it means it would take AP2, only 1.05 years of fcf income to pay off all of its debts.
AP2 has a better Debt to FCF ratio (1.05) than 82.35% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that AP2 is not too dependend on debt financing.
AP2 has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 9.73 |
ROIC/WACC1.95
WACC11.05%
2.3 Liquidity
A Current Ratio of 2.68 indicates that AP2 has no problem at all paying its short term obligations.
With a Current ratio value of 2.68, AP2 perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
A Quick Ratio of 1.96 indicates that AP2 should not have too much problems paying its short term obligations.
AP2 has a Quick ratio of 1.96. This is comparable to the rest of the industry: AP2 outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
AP2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.77%, 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 5.99%.
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)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.23% 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 7.14% on average per year.
EPS Next Y9.63%
EPS Next 2Y8.73%
EPS Next 3Y8.87%
EPS Next 5Y10.23%
Revenue Next Year6.15%
Revenue Next 2Y6.14%
Revenue Next 3Y6.39%
Revenue Next 5Y7.14%
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
Based on the Price/Earnings ratio of 16.94, the valuation of AP2 can be described as correct.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 68.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (26.25), we can say AP2 is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.23, the valuation of AP2 can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as AP2.
The average S&P500 Price/Forward Earnings ratio is at 22.15. AP2 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AP2 indicates a rather cheap valuation: AP2 is cheaper than 84.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AP2 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)0.73
EPS Next 2Y8.73%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
AP2 has a Yearly Dividend Yield of 1.13%. 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 2.40, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 19.74% 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.
DP19.74%
EPS Next 2Y8.73%
EPS Next 3Y8.87%
FRA:AP2 (5/30/2025, 7:00:00 PM)
138.2
-3.1 (-2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap112.28B
Analysts80
Price Target183.69 (32.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend1.28
Dividend Growth(5Y)12.01%
DP19.74%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.97%
Min EPS beat(2)2.11%
Max EPS beat(2)3.84%
EPS beat(4)4
Avg EPS beat(4)2.92%
Min EPS beat(4)2.11%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.87%
EPS beat(12)11
Avg EPS beat(12)4.88%
EPS beat(16)13
Avg EPS beat(16)4.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)-0.31%
Revenue beat(8)4
Avg Revenue beat(8)0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-5.22%
PT rev (3m)-9.94%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 15.23 | ||
| P/S | 4.58 | ||
| P/FCF | 21.34 | ||
| P/OCF | 17.41 | ||
| P/B | 6.8 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)8.16
EY5.9%
EPS(NY)9.08
Fwd EY6.57%
FCF(TTM)6.48
FCFY4.69%
OCF(TTM)7.94
OCFY5.75%
SpS30.15
BVpS20.32
TBVpS15.95
PEG (NY)1.76
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.03% | ||
| ROE | 34.06% | ||
| ROCE | 31.54% | ||
| ROIC | 21.53% | ||
| ROICexc | 31.26% | ||
| ROICexgc | 40.08% | ||
| OM | 29.22% | ||
| PM (TTM) | 22.95% | ||
| GM | 47.73% | ||
| FCFM | 21.48% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 330.54% | ||
| Cap/Sales | 4.86% | ||
| Interest Coverage | 36.21 | ||
| Cash Conversion | 85.8% | ||
| Profit Quality | 93.57% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.73 |
F-Score6
WACC11.05%
ROIC/WACC1.95
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)11.77%
EPS 3Y8.08%
EPS 5Y23.21%
EPS Q2Q%14.35%
EPS Next Y9.63%
EPS Next 2Y8.73%
EPS Next 3Y8.87%
EPS Next 5Y10.23%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
Revenue Next Year6.15%
Revenue Next 2Y6.14%
Revenue Next 3Y6.39%
Revenue Next 5Y7.14%
EBIT growth 1Y5.54%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.87%
EBIT Next 3Y9.95%
EBIT Next 5Y6.98%
FCF growth 1Y45.43%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y45.22%
OCF growth 3Y16.83%
OCF growth 5Y21.72%