APPLIED MATERIALS INC (AP2.DE) Stock Fundamental Analysis
Europe - FRA:AP2 - US0382221051 - Common Stock
194.72 EUR
-2.6 (-1.32%)
We assign a fundamental rating of 7 out of 10 to AP2. AP2 was compared to 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.
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.
Each year in the past 5 years AP2 had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.97%, AP2 belongs to the best of the industry, outperforming 84.75% of the companies in the same industry.
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 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
With a decent Profit Margin value of 23.88%, AP2 is doing good in the industry, outperforming 72.88% of the companies in the same industry.
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.
The Gross Margin of AP2 (48.50%) is comparable to the rest of the 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.
The number of shares outstanding for AP2 has been reduced compared to 1 year ago.
Compared to 5 years ago, AP2 has less shares outstanding
Compared to 1 year ago, AP2 has an improved debt to assets ratio.
2.2 Solvency
AP2 has an Altman-Z score of 11.63. This indicates that AP2 is financially healthy and has little risk of bankruptcy at the moment.
AP2 has a better Altman-Z score (11.63) than 77.97% of its industry peers.
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.
AP2 has a Debt to FCF ratio of 1.08. This is in the better half of the industry: AP2 outperforms 71.19% 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.
The Debt to Equity ratio of AP2 (0.32) is worse 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 11.63 |
ROIC/WACC1.96
WACC11.42%
2.3 Liquidity
A Current Ratio of 2.50 indicates that AP2 has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.50, AP2 is doing good in the industry, outperforming 62.71% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that AP2 should not have too much problems paying its short term obligations.
The Quick ratio of AP2 (1.79) 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
The Earnings Per Share has grown by an nice 13.12% over the past year.
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 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
The Earnings Per Share is expected to grow by 10.71% on average over the next years. This is quite good.
AP2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.44% yearly.
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
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
AP2 is valuated rather expensively with a Price/Earnings ratio of 23.60.
Based on the Price/Earnings ratio, AP2 is valued a bit cheaper than the industry average as 71.19% of the companies are valued more expensively.
AP2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.16, AP2 is valued on the expensive side.
AP2's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AP2 to the average of the S&P500 Index (23.23), we can say AP2 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AP2.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.92 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AP2 may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)1.02
EPS Next 2Y6.15%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
AP2 has a yearly dividend return of 0.81%, which is pretty low.
AP2's Dividend Yield is a higher than the industry average which is at 1.10.
With a Dividend Yield of 0.81, AP2 pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector 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
5.3 Sustainability
19.73% 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.
DP19.73%
EPS Next 2Y6.15%
EPS Next 3Y8.45%
FRA:AP2 (10/21/2025, 7:00:00 PM)
194.72
-2.6 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap155.12B
Revenue(TTM)28.61B
Net Income(TTM)6.83B
Analysts77.56
Price Target169.41 (-13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 23.16 | ||
| P/S | 6.29 | ||
| P/FCF | 30.92 | ||
| P/OCF | 23.37 | ||
| P/B | 9.23 | ||
| P/tB | 11.6 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)8.25
EY4.24%
EPS(NY)8.41
Fwd EY4.32%
FCF(TTM)6.3
FCFY3.23%
OCF(TTM)8.33
OCFY4.28%
SpS30.94
BVpS21.09
TBVpS16.78
PEG (NY)2.33
PEG (5Y)1.02
Graham Number62.57
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%
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 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 | 11.63 |
F-Score7
WACC11.42%
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%