APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
FRA:AP2 - Deutsche Boerse Ag - US0382221051 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to AP2. AP2 was compared to 55 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. AP2 has a decent growth rate and is not valued too expensively. This makes AP2 very considerable 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.
Each year in the past 5 years AP2 has been profitable.
Each year in the past 5 years AP2 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AP2 (20.09%) is better than 92.73% of its industry peers.
AP2's Return On Equity of 35.64% is amongst the best of the industry. AP2 outperforms 81.82% of its industry peers.
AP2 has a Return On Invested Capital of 22.19%. This is amongst the best in the industry. AP2 outperforms 83.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AP2 is significantly above the industry average of 15.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROIC | 22.19% |
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
The Profit Margin of AP2 (24.06%) is better than 76.36% of its industry peers.
AP2's Profit Margin has improved in the last couple of years.
AP2 has a Operating Margin of 29.66%. This is in the better half of the industry: AP2 outperforms 74.55% of its industry peers.
AP2's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.14%, AP2 is in line with its industry, outperforming 58.18% 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 | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% |
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
The number of shares outstanding for AP2 has been reduced compared to 5 years ago.
Compared to 1 year ago, AP2 has an improved debt to assets ratio.
2.2 Solvency
AP2 has an Altman-Z score of 9.94. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AP2 (9.94) is better than 83.64% of its industry peers.
AP2 has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
AP2's Debt to FCF ratio of 1.07 is fine compared to the rest of the industry. AP2 outperforms 78.18% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that AP2 is not too dependend on debt financing.
AP2 has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 9.94 |
ROIC/WACC2.24
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.46 indicates that AP2 has no problem at all paying its short term obligations.
With a Current ratio value of 2.46, AP2 perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that AP2 should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.76, AP2 perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 |
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.
AP2 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.21% yearly.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 5.99% in the last 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)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
AP2 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.33% yearly.
The Revenue is expected to grow by 7.18% on average over the next years.
EPS Next Y9.63%
EPS Next 2Y8.73%
EPS Next 3Y8.87%
EPS Next 5Y10.33%
Revenue Next Year6.25%
Revenue Next 2Y5.98%
Revenue Next 3Y6.33%
Revenue Next 5Y7.18%
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 18.76, the valuation of AP2 can be described as rather expensive.
70.91% of the companies in the same industry are more expensive than AP2, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.35. AP2 is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of AP2.
AP2's Price/Forward Earnings is on the same level as the industry average.
AP2's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.87 |
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 cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 15.7 |
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.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)0.81
EPS Next 2Y8.73%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, AP2 has a reasonable but not impressive dividend return.
AP2's Dividend Yield is a higher than the industry average which is at 1.26.
Compared to an average S&P500 Dividend Yield of 2.42, AP2's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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
19.40% of the earnings are spent on dividend by AP2. This is a low number and sustainable payout ratio.
AP2's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.4%
EPS Next 2Y8.73%
EPS Next 3Y8.87%
FRA:AP2 (6/20/2025, 4:39:57 PM)
150.48
-0.58 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.29%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap120.76B
Analysts79.51
Price Target176.13 (17.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.25
Dividend Growth(5Y)12.01%
DP19.4%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.7%
Min EPS beat(2)1.29%
Max EPS beat(2)2.11%
EPS beat(4)4
Avg EPS beat(4)2.49%
Min EPS beat(4)1.29%
Max EPS beat(4)3.84%
EPS beat(8)8
Avg EPS beat(8)4.2%
EPS beat(12)12
Avg EPS beat(12)5.37%
EPS beat(16)13
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)-0.43%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)-3.32%
PT rev (3m)-12.67%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 16.87 | ||
| P/S | 4.93 | ||
| P/FCF | 23.65 | ||
| P/OCF | 18.59 | ||
| P/B | 7.31 | ||
| P/tB | 9.26 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)8.02
EY5.33%
EPS(NY)8.92
Fwd EY5.93%
FCF(TTM)6.36
FCFY4.23%
OCF(TTM)8.09
OCFY5.38%
SpS30.49
BVpS20.58
TBVpS16.25
PEG (NY)1.95
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.09% | ||
| ROE | 35.64% | ||
| ROCE | 32.5% | ||
| ROIC | 22.19% | ||
| ROICexc | 29.79% | ||
| ROICexgc | 37.38% | ||
| OM | 29.66% | ||
| PM (TTM) | 24.06% | ||
| GM | 48.14% | ||
| FCFM | 20.87% |
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 | 0.33 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 386.2% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 37.36 | ||
| Cash Conversion | 85.26% | ||
| Profit Quality | 86.73% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 9.94 |
F-Score7
WACC9.91%
ROIC/WACC2.24
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 5Y10.33%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%6.83%
Revenue Next Year6.25%
Revenue Next 2Y5.98%
Revenue Next 3Y6.33%
Revenue Next 5Y7.18%
EBIT growth 1Y8.89%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year15.87%
EBIT Next 3Y9.95%
EBIT Next 5Y6.82%
FCF growth 1Y-0.88%
FCF growth 3Y16.18%
FCF growth 5Y21.69%
OCF growth 1Y8.25%
OCF growth 3Y16.83%
OCF growth 5Y21.72%