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Should Quality-Oriented Investors Explore APPLE INC (NASDAQ:AAPL)?

By Mill Chart

Last update: Jul 1, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if APPLE INC (NASDAQ:AAPL) is suited for quality investing. Investors should of course do their own research, but we spotted APPLE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Exploring Why NASDAQ:AAPL Holds Appeal for Quality Investors.

  • APPLE INC has demonstrated significant revenue growth over the past 5 years, with a 7.61% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • APPLE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 67.34% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 1.03, APPLE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a favorable Profit Quality (5-year) ratio of 109.0%, APPLE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • APPLE INC has consistently achieved strong EBIT growth over the past 5 years, with a 10.02% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • APPLE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:AAPL?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to AAPL. AAPL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making AAPL a very profitable company, without any liquidiy or solvency issues. AAPL is valied quite expensively at the moment, while it does show a decent growth rate.

Our latest full fundamental report of AAPL contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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