APPLE INC (AAPL)
US0378331005 - Common Stock
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL 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, AAPL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AAPL was profitable.
AAPL had a positive operating cash flow in the past year.
AAPL had positive earnings in each of the past 5 years.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AAPL (29.75%) is better than 96.88% of its industry peers.
AAPL's Return On Equity of 135.31% is amongst the best of 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.
The Average Return On Invested Capital over the past 3 years for AAPL is significantly above the industry average of 14.24%.
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.
In the last couple of years the Profit Margin of AAPL has grown nicely.
Looking at the Operating Margin, with a value of 30.98%, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Operating Margin of AAPL has grown nicely.
Looking at the Gross Margin, with a value of 45.59%, AAPL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 9.01. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL has a Altman-Z score of 9.01. This is amongst the best in the industry. AAPL outperforms 90.63% 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.
The Debt to FCF ratio of AAPL (1.03) is better than 87.50% 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.
Even though the debt/equity ratio score it not favorable for AAPL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 9.01 |
ROIC/WACC4.76
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.04 indicates that AAPL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, AAPL is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
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 has a worse Quick ratio (0.99) than 75.00% 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.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.58% yearly.
The Revenue has decreased by -0.90% in the past year.
AAPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.61% yearly.
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
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.40% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 29.53 indicates a quite expensive valuation of AAPL.
62.50% of the companies in the same industry are more expensive than AAPL, based on the Price/Earnings ratio.
AAPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 26.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, AAPL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 26.05 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.77 | ||
| EV/EBITDA | 22.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)1.9
EPS Next 2Y9.14%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 2.76.
Compared to an average S&P500 Dividend Yield of 2.32, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of AAPL grows each year by 6.58%, which is quite nice.
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
AAPL pays out 15.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of AAPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.08%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
APPLE INC
NASDAQ:AAPL (5/17/2024, 7:00:00 PM)
After market: 189.92 +0.05 (+0.03%)189.87
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners59.32%
Inst Owner Change-4.12%
Ins Owners0.07%
Ins Owner Change-0.89%
Market Cap2931.95B
Analysts77.5
Price Target206.41 (8.71%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Dividend Growth(5Y)6.58%
DP15.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-0.02%
Max EPS beat(2)1.87%
EPS beat(4)3
Avg EPS beat(4)2.03%
Min EPS beat(4)-0.02%
Max EPS beat(4)3.42%
EPS beat(8)5
Avg EPS beat(8)1.01%
EPS beat(12)8
Avg EPS beat(12)3.86%
EPS beat(16)12
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
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)0.92%
PT rev (3m)1.4%
EPS NQ rev (1m)1%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 26.05 | ||
| P/S | 7.68 | ||
| P/FCF | 28.77 | ||
| P/OCF | 26.52 | ||
| P/B | 39.52 | ||
| P/tB | 39.52 | ||
| EV/EBITDA | 22.63 |
EPS(TTM)6.43
EY3.39%
EPS(NY)7.29
Fwd EY3.84%
FCF(TTM)6.6
FCFY3.48%
OCF(TTM)7.16
OCFY3.77%
SpS24.71
BVpS4.8
TBVpS4.8
PEG (NY)3.2
PEG (5Y)1.9
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 | 9.01 |
F-Score8
WACC9.74%
ROIC/WACC4.76
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%