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APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis

Europe - FRA:AP2 - US0382221051 - Common Stock

191.7 EUR
+1.84 (+0.97%)
Last: 10/23/2025, 9:04:19 AM
Fundamental Rating

7

Overall AP2 gets a fundamental rating of 7 out of 10. We evaluated AP2 against 59 industry peers in the Semiconductors & Semiconductor Equipment industry. AP2 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AP2 is not valued too expensively and it also shows a decent growth rate. These ratings could make AP2 a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year AP2 was profitable.
AP2 had a positive operating cash flow in the past year.
In the past 5 years AP2 has always been profitable.
AP2 had a positive operating cash flow in each of the past 5 years.
AP2.DE Yearly Net Income VS EBIT VS OCF VS FCFAP2.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

The Return On Assets of AP2 (19.97%) is better than 84.75% of its industry peers.
AP2's Return On Equity of 35.03% is amongst the best of the industry. AP2 outperforms 81.36% of its industry peers.
AP2's Return On Invested Capital of 22.38% is amongst the best of the industry. AP2 outperforms 86.44% 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%.
Industry RankSector 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%
AP2.DE Yearly ROA, ROE, ROICAP2.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

AP2 has a Profit Margin of 23.88%. This is in the better half of the industry: AP2 outperforms 72.88% of its industry peers.
In the last couple of years the Profit Margin of AP2 has grown nicely.
The Operating Margin of AP2 (30.14%) is better than 74.58% 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 59.32% of the companies in the same industry.
In the last couple of years the Gross Margin of AP2 has grown nicely.
Industry RankSector 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%
AP2.DE Yearly Profit, Operating, Gross MarginsAP2.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

8

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.
Compared to 1 year ago, AP2 has less shares outstanding
Compared to 5 years ago, AP2 has less shares outstanding
AP2 has a better debt/assets ratio than last year.
AP2.DE Yearly Shares OutstandingAP2.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
AP2.DE Yearly Total Debt VS Total AssetsAP2.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

An Altman-Z score of 11.43 indicates that AP2 is not in any danger for bankruptcy at the moment.
AP2 has a Altman-Z score of 11.43. This is in the better half of the industry: AP2 outperforms 79.66% of its industry peers.
AP2 has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of 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 71.19% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that AP2 is not too dependend on debt financing.
AP2 has a worse Debt to Equity ratio (0.32) than 62.71% of its industry peers.
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 RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.08
Altman-Z 11.43
ROIC/WACC1.96
WACC11.4%
AP2.DE Yearly LT Debt VS Equity VS FCFAP2.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
AP2 has a Current ratio of 2.50. This is in the better half of the industry: AP2 outperforms 62.71% 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 RankSector Rank
Current Ratio 2.5
Quick Ratio 1.79
AP2.DE Yearly Current Assets VS Current LiabilitesAP2.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.12% over the past year.
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.
Looking at the last year, AP2 shows a small growth in Revenue. The Revenue has grown by 6.55% in the last year.
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)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

Based on estimates for the next years, AP2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.71% on average per year.
Based on estimates for the next years, AP2 will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
EPS Next Y10.13%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
EPS Next 5Y10.71%
Revenue Next Year4.39%
Revenue Next 2Y3.78%
Revenue Next 3Y5.5%
Revenue Next 5Y7.44%

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.
AP2.DE Yearly Revenue VS EstimatesAP2.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B
AP2.DE Yearly EPS VS EstimatesAP2.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.21, AP2 is valued on the expensive side.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than 71.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of AP2 to the average of the S&P500 Index (27.57), we can say AP2 is valued inline with the index average.
The Price/Forward Earnings ratio is 22.76, which indicates a rather expensive current valuation of AP2.
AP2's Price/Forward Earnings is on the same level as the industry average.
AP2 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.21
Fwd PE 22.76
AP2.DE Price Earnings VS Forward Price EarningsAP2.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 a bit cheaper than 76.27% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.39
EV/EBITDA 19.01
AP2.DE Per share dataAP2.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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)2.29
PEG (5Y)1
EPS Next 2Y6.15%
EPS Next 3Y8.45%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.81%, AP2 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.10, AP2 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, AP2's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.81%

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
AP2.DE Yearly Dividends per shareAP2.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

AP2 pays out 19.73% of its income as dividend. This is a 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 2Y6.15%
EPS Next 3Y8.45%
AP2.DE Yearly Income VS Free CF VS DividendAP2.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
AP2.DE Dividend Payout.AP2.DE Dividend Payout, showing the Payout Ratio.AP2.DE Dividend Payout.PayoutRetained Earnings

APPLIED MATERIALS INC

FRA:AP2 (10/23/2025, 9:04:19 AM)

191.7

+1.84 (+0.97%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)08-14 2025-08-14/amc
Earnings (Next)11-13 2025-11-13/amc
Inst Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap152.72B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.56
Price Target169.41 (-11.63%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend1.24
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)2.07%
PT rev (3m)-4.14%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-8.81%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.77%
Valuation
Industry RankSector Rank
PE 23.21
Fwd PE 22.76
P/S 6.18
P/FCF 30.39
P/OCF 22.97
P/B 9.07
P/tB 11.4
EV/EBITDA 19.01
EPS(TTM)8.26
EY4.31%
EPS(NY)8.42
Fwd EY4.39%
FCF(TTM)6.31
FCFY3.29%
OCF(TTM)8.35
OCFY4.35%
SpS31
BVpS21.13
TBVpS16.81
PEG (NY)2.29
PEG (5Y)1
Graham Number62.67
Profitability
Industry RankSector 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%
ROICexgc growth 3Y-7.9%
ROICexgc 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 RankSector 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 11.43
F-Score7
WACC11.4%
ROIC/WACC1.96
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 Y10.13%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
EPS Next 5Y10.71%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y5.62%
Revenue growth 5Y13.22%
Sales Q2Q%7.73%
Revenue Next Year4.39%
Revenue Next 2Y3.78%
Revenue Next 3Y5.5%
Revenue Next 5Y7.44%
EBIT growth 1Y10.66%
EBIT growth 3Y3%
EBIT growth 5Y18.52%
EBIT Next Year14.33%
EBIT Next 3Y8.79%
EBIT Next 5Y7.47%
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%