APPLE INC (1AAPL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AAPL - US0378331005 - Common Stock
210.85 EUR
-1.6 (-0.75%)
We assign a fundamental rating of 7 out of 10 to 1AAPL. 1AAPL was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making 1AAPL a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, 1AAPL is valued expensive at the moment. With these ratings, 1AAPL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year 1AAPL was profitable.
- 1AAPL had a positive operating cash flow in the past year.
- Each year in the past 5 years 1AAPL has been profitable.
- Each year in the past 5 years 1AAPL had a positive operating cash flow.
1.2 Ratios
- 1AAPL has a Return On Assets of 31.18%. This is amongst the best in the industry. 1AAPL outperforms 100.00% of its industry peers.
- 1AAPL's Return On Equity of 151.91% is amongst the best of the industry. 1AAPL outperforms 100.00% of its industry peers.
- 1AAPL has a better Return On Invested Capital (55.64%) than 100.00% of its industry peers.
- 1AAPL had an Average Return On Invested Capital over the past 3 years of 51.04%. This is significantly above the industry average of 17.59%.
- The last Return On Invested Capital (55.64%) for 1AAPL is above the 3 year average (51.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROIC | 55.64% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
1.3 Margins
- 1AAPL has a better Profit Margin (26.92%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of 1AAPL has grown nicely.
- The Operating Margin of 1AAPL (31.97%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of 1AAPL has grown nicely.
- 1AAPL has a better Gross Margin (46.91%) than 81.82% of its industry peers.
- 1AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% |
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
2. Health
2.1 Basic Checks
- 1AAPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- 1AAPL has less shares outstanding than it did 1 year ago.
- 1AAPL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1AAPL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.99 indicates that 1AAPL is not in any danger for bankruptcy at the moment.
- 1AAPL has a better Altman-Z score (9.99) than 96.97% of its industry peers.
- 1AAPL has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.00, 1AAPL belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- 1AAPL has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.17, 1AAPL is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- Even though the debt/equity ratio score it not favorable for 1AAPL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.99 |
ROIC/WACC6.36
WACC8.75%
2.3 Liquidity
- 1AAPL has a Current Ratio of 0.89. This is a bad value and indicates that 1AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.89, 1AAPL is doing worse than 75.76% of the companies in the same industry.
- 1AAPL has a Quick Ratio of 0.89. This is a bad value and indicates that 1AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.86, 1AAPL is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
- 1AAPL does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- 1AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.67%, which is quite good.
- The Earnings Per Share has been growing by 18.04% on average over the past years. This is quite good.
- 1AAPL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
- The Revenue has been growing by 8.68% on average over the past years. This is quite good.
EPS 1Y (TTM)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
3.2 Future
- 1AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.24% yearly.
- The Revenue is expected to grow by 6.85% on average over the next years.
EPS Next Y12.74%
EPS Next 2Y11.64%
EPS Next 3Y11.11%
EPS Next 5Y13.24%
Revenue Next Year9.02%
Revenue Next 2Y7.88%
Revenue Next 3Y7.38%
Revenue Next 5Y6.85%
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
- Based on the Price/Earnings ratio of 33.05, the valuation of 1AAPL can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 1AAPL.
- The average S&P500 Price/Earnings ratio is at 27.21. 1AAPL is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 29.31, 1AAPL can be considered very expensive at the moment.
- 60.61% of the companies in the same industry are cheaper than 1AAPL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1AAPL to the average of the S&P500 Index (24.26), we can say 1AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 29.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AAPL is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AAPL indicates a somewhat cheap valuation: 1AAPL is cheaper than 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.93 | ||
| EV/EBITDA | 25.51 |
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 1AAPL may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.83
EPS Next 2Y11.64%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
- 1AAPL has a yearly dividend return of 0.34%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.90, 1AAPL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
- The dividend of 1AAPL has a limited annual growth rate of 4.95%.
Dividend Growth(5Y)4.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1AAPL pays out 13.77% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1AAPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.77%
EPS Next 2Y11.64%
EPS Next 3Y11.11%
APPLE INC / 1AAPL.MI FAQ
What is the fundamental rating for 1AAPL stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1AAPL.MI.
Can you provide the valuation status for APPLE INC?
ChartMill assigns a valuation rating of 2 / 10 to APPLE INC (1AAPL.MI). This can be considered as Overvalued.
What is the profitability of 1AAPL stock?
APPLE INC (1AAPL.MI) has a profitability rating of 10 / 10.
What is the expected EPS growth for APPLE INC (1AAPL.MI) stock?
The Earnings per Share (EPS) of APPLE INC (1AAPL.MI) is expected to grow by 12.74% in the next year.
Can you provide the dividend sustainability for 1AAPL stock?
The dividend rating of APPLE INC (1AAPL.MI) is 4 / 10 and the dividend payout ratio is 13.77%.