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Why Quality-Oriented Investors Should Consider NASDAQ:AAPL.

By Mill Chart

Last update: Dec 12, 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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Looking into the quality metrics of APPLE INC

  • Over the past 5 years, APPLE INC has experienced impressive revenue growth, with 8.49% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • APPLE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 74.45% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 0.98, APPLE INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 111.0%, 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 experienced impressive EBIT growth over the past 5 years, with 14.02% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • APPLE INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

AAPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL gets an excellent profitability rating and is at the same time showing great financial health properties. AAPL is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of AAPL for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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