APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP2 - US0382221051 - Common Stock
265.2 EUR
+2.15 (+0.82%)
Taking everything into account, AP2 scores 6 out of 10 in our fundamental rating. AP2 was compared to 71 industry peers in the Semiconductors & Semiconductor Equipment industry. AP2 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, AP2 is valued expensive at the moment. 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.
AP2 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AP2's Return On Assets of 19.28% is amongst the best of the industry. AP2 outperforms 87.32% of its industry peers.
AP2's Return On Equity of 34.28% is amongst the best of the industry. AP2 outperforms 83.10% of its industry peers.
AP2 has a Return On Invested Capital of 24.38%. This is amongst the best in the industry. AP2 outperforms 85.92% of its industry peers.
AP2 had an Average Return On Invested Capital over the past 3 years of 25.04%. This is significantly above the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROIC | 24.38% |
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 24.67%, AP2 is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
AP2's Profit Margin has improved in the last couple of years.
The Operating Margin of AP2 (29.86%) is better than 76.06% of its industry peers.
In the last couple of years the Operating Margin of AP2 has grown nicely.
AP2's Gross Margin of 48.67% is in line compared to the rest of the industry. AP2 outperforms 50.70% of its industry peers.
In the last couple of years the Gross Margin of AP2 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AP2 is creating value.
AP2 has less shares outstanding than it did 1 year ago.
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 13.36 indicates that AP2 is not in any danger for bankruptcy at the moment.
AP2 has a better Altman-Z score (13.36) than 83.10% of its industry peers.
AP2 has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
The Debt to FCF ratio of AP2 (1.15) is better than 69.01% of its industry peers.
AP2 has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
AP2's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. AP2 outperforms 40.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 13.36 |
ROIC/WACC2.28
WACC10.71%
2.3 Liquidity
A Current Ratio of 2.61 indicates that AP2 has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.61, AP2 is doing good in the industry, outperforming 66.20% of the companies in the same industry.
AP2 has a Quick Ratio of 1.90. 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 of 1.90. This is in the better half of the industry: AP2 outperforms 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.78% over the past year.
The Earnings Per Share has been growing by 17.65% on average over the past years. This is quite good.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 4.39% in the last 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 11.04% on average per year.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
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 32.90, the valuation of AP2 can be described as expensive.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 60.56% of the companies in the same industry.
AP2's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 31.99, which means the current valuation is very expensive for AP2.
AP2's Price/Forward Earnings ratio is in line with the industry average.
AP2 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 31.99 |
4.2 Price Multiples
AP2's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AP2 is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.35 | ||
| EV/EBITDA | 27.13 |
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)11.37
PEG (5Y)1.86
EPS Next 2Y11.54%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, AP2 is not a good candidate for dividend investing.
AP2's Dividend Yield is a higher than the industry average which is at 0.79.
Compared to an average S&P500 Dividend Yield of 1.92, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
AP2 pays out 19.78% 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.
DP19.78%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
FRA:AP2 (1/13/2026, 5:18:00 PM)
265.2
+2.15 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.06%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap211.27B
Revenue(TTM)28.37B
Net Income(TTM)7.00B
Analysts78.5
Price Target228.04 (-14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.47
Dividend Growth(5Y)14.79%
DP19.78%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.63%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)2.02%
Min EPS beat(4)1.29%
Max EPS beat(4)3.04%
EPS beat(8)8
Avg EPS beat(8)3.4%
EPS beat(12)12
Avg EPS beat(12)3.99%
EPS beat(16)14
Avg EPS beat(16)4.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.02%
PT rev (1m)3.69%
PT rev (3m)34.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 31.99 | ||
| P/S | 8.71 | ||
| P/FCF | 43.35 | ||
| P/OCF | 31.04 | ||
| P/B | 12.1 | ||
| P/tB | 14.99 | ||
| EV/EBITDA | 27.13 |
EPS(TTM)8.06
EY3.04%
EPS(NY)8.29
Fwd EY3.13%
FCF(TTM)6.12
FCFY2.31%
OCF(TTM)8.54
OCFY3.22%
SpS30.46
BVpS21.92
TBVpS17.7
PEG (NY)11.37
PEG (5Y)1.86
Graham Number63.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.28% | ||
| ROE | 34.28% | ||
| ROCE | 29.93% | ||
| ROIC | 24.38% | ||
| ROICexc | 34.93% | ||
| ROICexgc | 43.57% | ||
| OM | 29.86% | ||
| PM (TTM) | 24.67% | ||
| GM | 48.67% | ||
| FCFM | 20.09% |
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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 519.54% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | 35.44 | ||
| Cash Conversion | 89.37% | ||
| Profit Quality | 81.42% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 13.36 |
F-Score6
WACC10.71%
ROIC/WACC2.28
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 Y2.89%
EPS Next 2Y11.54%
EPS Next 3Y9.31%
EPS Next 5Y11.04%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y3.23%
Revenue growth 5Y10.52%
Sales Q2Q%-3.48%
Revenue Next Year2.16%
Revenue Next 2Y7.61%
Revenue Next 3Y6.45%
Revenue Next 5Y6.57%
EBIT growth 1Y7.66%
EBIT growth 3Y2.86%
EBIT growth 5Y14.18%
EBIT Next Year7.12%
EBIT Next 3Y9.46%
EBIT Next 5Y10.57%
FCF growth 1Y-23.89%
FCF growth 3Y7.3%
FCF growth 5Y11%
OCF growth 1Y-8.29%
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 6 / 10 to AP2.DE.
What is the valuation status of APPLIED MATERIALS INC (AP2.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to APPLIED MATERIALS INC (AP2.DE). This can be considered as Overvalued.
What is the profitability of AP2 stock?
APPLIED MATERIALS INC (AP2.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of APPLIED MATERIALS INC (AP2.DE) stock?
The Price/Earnings (PE) ratio for APPLIED MATERIALS INC (AP2.DE) is 32.9 and the Price/Book (PB) ratio is 12.1.
How sustainable is the dividend of APPLIED MATERIALS INC (AP2.DE) stock?
The dividend rating of APPLIED MATERIALS INC (AP2.DE) is 4 / 10 and the dividend payout ratio is 19.78%.