APPLE INC (AAPL)
US0378331005 - Common Stock
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AAPL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AAPL was profitable.
In the past year AAPL had a positive cash flow from operations.
In the past 5 years AAPL has always been profitable.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
AAPL has a better Return On Assets (29.75%) than 96.88% of its industry peers.
AAPL has a Return On Equity of 135.31%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 46.37%, AAPL belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AAPL is significantly above the industry average of 13.98%.
The last Return On Invested Capital (46.37%) for AAPL is above the 3 year average (44.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROIC | 46.37% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
1.3 Margins
AAPL's Profit Margin of 26.31% is amongst the best of the industry. AAPL outperforms 93.75% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
The Operating Margin of AAPL (30.98%) is better than 96.88% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
The Gross Margin of AAPL (45.59%) is better than 78.13% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% |
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAPL is creating value.
AAPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 8.74. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL's Altman-Z score of 8.74 is amongst the best of the industry. AAPL outperforms 93.75% of its industry peers.
AAPL has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
AAPL's Debt to FCF ratio of 1.03 is amongst the best of the industry. AAPL outperforms 84.38% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. AAPL is outperformed by 75.00% of its industry peers.
Although AAPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 8.74 |
ROIC/WACC4.78
WACC9.7%
2.3 Liquidity
AAPL has a Current Ratio of 1.04. This is a normal value and indicates that AAPL is financially healthy and should not expect problems in meeting its short term obligations.
AAPL's Current ratio of 1.04 is on the low side compared to the rest of the industry. AAPL is outperformed by 84.38% of its industry peers.
AAPL has a Quick Ratio of 1.04. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
AAPL's Quick ratio of 0.99 is on the low side compared to the rest of the industry. AAPL is outperformed by 78.13% of its industry peers.
The current and quick ratio evaluation for AAPL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.17%, which is quite good.
Measured over the past years, AAPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.58% on average per year.
The Revenue has decreased by -0.90% in the past year.
Measured over the past years, AAPL shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q0.66%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q-4.31%
3.2 Future
AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
AAPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y9.51%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y4.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.35 indicates a quite expensive valuation of AAPL.
AAPL's Price/Earnings ratio is a bit cheaper when compared to the industry. AAPL is cheaper than 62.50% of the companies in the same industry.
AAPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.11.
The Price/Forward Earnings ratio is 25.00, which means the current valuation is very expensive for AAPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
AAPL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 25 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 21.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAPL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AAPL may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)1.82
EPS Next 2Y9.14%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 2.80, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.55, AAPL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of AAPL is nicely growing with an annual growth rate of 6.58%!
AAPL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
15.08% of the earnings are spent on dividend by AAPL. This is a low number and sustainable payout ratio.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.08%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
APPLE INC
NASDAQ:AAPL (5/8/2024, 10:22:08 AM)
182.269
-0.13 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners61.54%
Inst Owner Change-0.54%
Ins Owners0.07%
Ins Owner Change-0.87%
Market Cap2814.58B
Analysts77.5
Price Target206.41 (13.24%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)6.58%
DP15.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.96%
Min EPS beat(2)0.05%
Max EPS beat(2)1.87%
EPS beat(4)4
Avg EPS beat(4)2.05%
Min EPS beat(4)0.05%
Max EPS beat(4)3.42%
EPS beat(8)6
Avg EPS beat(8)1.02%
EPS beat(12)9
Avg EPS beat(12)3.87%
EPS beat(16)13
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)3
Avg Revenue beat(12)-0.31%
Revenue beat(16)6
Avg Revenue beat(16)1.7%
PT rev (1m)-0.81%
PT rev (3m)-0.34%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 25 | ||
| P/S | 7.38 | ||
| P/FCF | 27.62 | ||
| P/OCF | 25.46 | ||
| P/B | 37.94 | ||
| P/tB | 37.94 | ||
| EV/EBITDA | 21.74 |
EPS(TTM)6.43
EY3.53%
EPS(NY)7.29
Fwd EY4%
FCF(TTM)6.6
FCFY3.62%
OCF(TTM)7.16
OCFY3.93%
SpS24.71
BVpS4.8
TBVpS4.8
PEG (NY)3.07
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROCE | 55.36% | ||
| ROIC | 46.37% | ||
| ROICexc | 67.34% | ||
| ROICexgc | 67.34% | ||
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% | ||
| FCFM | 26.71% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
ROICexc(3y)60.39%
ROICexc(5y)52.51%
ROICexgc(3y)60.39%
ROICexgc(5y)52.51%
ROCE(3y)54.51%
ROCE(5y)44.27%
ROICexcg growth 3Y14.64%
ROICexcg growth 5Y15.74%
ROICexc growth 3Y14.64%
ROICexc growth 5Y15.74%
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
F-Score8
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 101.52% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 8.74 |
F-Score8
WACC9.7%
ROIC/WACC4.78
Cap/Depr(3y)96.6%
Cap/Depr(5y)87.91%
Cap/Sales(3y)2.87%
Cap/Sales(5y)3.06%
Profit Quality(3y)104.17%
Profit Quality(5y)109.38%
Growth
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q0.66%
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q-4.31%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y4.4%
EBIT growth 1Y5.29%
EBIT growth 3Y19.91%
EBIT growth 5Y10.02%
EBIT Next Year15.82%
EBIT Next 3Y9.61%
EBIT Next 5Y8.79%
FCF growth 1Y-3.66%
FCF growth 3Y10.72%
FCF growth 5Y9.2%
OCF growth 1Y-5.04%
OCF growth 3Y11.07%
OCF growth 5Y7.38%