APPLE INC (1AAPL.MI) Stock Fundamental Analysis
BIT:1AAPL - Borsa Italiana Milan - US0378331005 - Common Stock - Currency: EUR
1AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 30 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. 1AAPL is quite expensive at the moment. It does show a decent growth rate. These ratings could make 1AAPL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1AAPL had positive earnings in the past year.
1AAPL had a positive operating cash flow in the past year.
1AAPL had positive earnings in each of the past 5 years.
1AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1AAPL has a Return On Assets of 27.94%. This is amongst the best in the industry. 1AAPL outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 144.03%, 1AAPL belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
1AAPL's Return On Invested Capital of 52.80% is amongst the best of the industry. 1AAPL outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1AAPL is significantly above the industry average of 16.47%.
The 3 year average ROIC (48.83%) for 1AAPL is below the current ROIC(52.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.94% | ||
| ROE | 144.03% | ||
| ROIC | 52.8% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)48.83%
ROIC(5y)42.3%
1.3 Margins
1AAPL has a better Profit Margin (24.30%) than 100.00% of its industry peers.
1AAPL's Profit Margin has improved in the last couple of years.
The Operating Margin of 1AAPL (31.76%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1AAPL has grown nicely.
With an excellent Gross Margin value of 46.52%, 1AAPL belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Gross Margin of 1AAPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.76% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.52% |
OM growth 3Y1.9%
OM growth 5Y5.1%
PM growth 3Y-2.52%
PM growth 5Y2.45%
GM growth 3Y3.41%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1AAPL is creating value.
The number of shares outstanding for 1AAPL has been reduced compared to 1 year ago.
The number of shares outstanding for 1AAPL has been reduced compared to 5 years ago.
Compared to 1 year ago, 1AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.80 indicates that 1AAPL is not in any danger for bankruptcy at the moment.
1AAPL has a Altman-Z score of 9.80. This is amongst the best in the industry. 1AAPL outperforms 96.30% of its industry peers.
1AAPL has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
The Debt to FCF ratio of 1AAPL (0.98) is better than 85.19% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that 1AAPL has dependencies on debt financing.
The Debt to Equity ratio of 1AAPL (1.29) is worse than 66.67% of its industry peers.
Although 1AAPL 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 | 1.29 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 9.8 |
ROIC/WACC4.76
WACC11.1%
2.3 Liquidity
1AAPL has a Current Ratio of 0.92. 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 Current ratio value of 0.92, 1AAPL is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
1AAPL has a Quick Ratio of 0.92. 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 0.88, 1AAPL is not doing good in the industry: 66.67% 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 | 0.92 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
1AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.57%, which is quite good.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
Looking at the last year, 1AAPL shows a small growth in Revenue. The Revenue has grown by 2.61% in the last year.
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
EPS 1Y (TTM)8.57%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%10.09%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%3.95%
3.2 Future
The Earnings Per Share is expected to grow by 16.00% on average over the next years. This is quite good.
Based on estimates for the next years, 1AAPL will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y11.26%
EPS Next 2Y11.65%
EPS Next 3Y11.41%
EPS Next 5Y16%
Revenue Next Year6.03%
Revenue Next 2Y6.95%
Revenue Next 3Y6.84%
Revenue Next 5Y7.46%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.06, which means the current valuation is very expensive for 1AAPL.
The rest of the industry has a similar Price/Earnings ratio as 1AAPL.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1AAPL is valued at the same level.
The Price/Forward Earnings ratio is 27.37, which means the current valuation is very expensive for 1AAPL.
1AAPL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AAPL is more expensive than 74.07% of the companies in the same industry.
1AAPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.06 | ||
| Fwd PE | 27.37 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than 1AAPL, based on the Enterprise Value to EBITDA ratio.
1AAPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.42 | ||
| EV/EBITDA | 25.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)1.85
EPS Next 2Y11.65%
EPS Next 3Y11.41%
5. Dividend
5.1 Amount
1AAPL has a yearly dividend return of 0.42%, which is pretty low.
1AAPL's Dividend Yield is a higher than the industry average which is at 2.05.
With a Dividend Yield of 0.42, 1AAPL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
The dividend of 1AAPL has a limited annual growth rate of 5.30%.
Dividend Growth(5Y)5.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AAPL pays out 15.88% of its income as dividend. This is a sustainable payout ratio.
1AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.88%
EPS Next 2Y11.65%
EPS Next 3Y11.41%
APPLE INC
BIT:1AAPL (2/4/2025, 7:00:00 PM)
222.85
+2.5 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners60.98%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap3368.56B
Analysts78.91
Price Target235.17 (5.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.25%
Min EPS beat(2)0.15%
Max EPS beat(2)0.35%
EPS beat(4)3
Avg EPS beat(4)0.61%
Min EPS beat(4)-0.02%
Max EPS beat(4)1.95%
EPS beat(8)7
Avg EPS beat(8)1.81%
EPS beat(12)9
Avg EPS beat(12)1.24%
EPS beat(16)12
Avg EPS beat(16)5.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-1.15%
Revenue beat(12)1
Avg Revenue beat(12)-1.28%
Revenue beat(16)4
Avg Revenue beat(16)0.37%
PT rev (1m)-0.45%
PT rev (3m)4.06%
EPS NQ rev (1m)-1.75%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.06 | ||
| Fwd PE | 27.37 | ||
| P/S | 8.8 | ||
| P/FCF | 35.42 | ||
| P/OCF | 32.15 | ||
| P/B | 52.15 | ||
| P/tB | 52.15 | ||
| EV/EBITDA | 25.47 |
EPS(TTM)6.74
EY3.02%
EPS(NY)8.14
Fwd EY3.65%
FCF(TTM)6.29
FCFY2.82%
OCF(TTM)6.93
OCFY3.11%
SpS25.33
BVpS4.27
TBVpS4.27
PEG (NY)2.94
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.94% | ||
| ROE | 144.03% | ||
| ROCE | 62.93% | ||
| ROIC | 52.8% | ||
| ROICexc | 71.99% | ||
| ROICexgc | 71.99% | ||
| OM | 31.76% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.52% | ||
| FCFM | 24.84% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)48.83%
ROIC(5y)42.3%
ROICexc(3y)68.4%
ROICexc(5y)60.45%
ROICexgc(3y)68.4%
ROICexgc(5y)60.45%
ROCE(3y)60.19%
ROCE(5y)51.84%
ROICexcg growth 3Y12.71%
ROICexcg growth 5Y14.84%
ROICexc growth 3Y12.71%
ROICexc growth 5Y14.84%
OM growth 3Y1.9%
OM growth 5Y5.1%
PM growth 3Y-2.52%
PM growth 5Y2.45%
GM growth 3Y3.41%
GM growth 5Y4.09%
F-Score7
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 85.6% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.84% | ||
| Profit Quality | 102.24% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 9.8 |
F-Score7
WACC11.1%
ROIC/WACC4.76
Cap/Depr(3y)91.37%
Cap/Depr(5y)87.69%
Cap/Sales(3y)2.66%
Cap/Sales(5y)2.74%
Profit Quality(3y)110.14%
Profit Quality(5y)111.28%
High Growth Momentum
Growth
EPS 1Y (TTM)8.57%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%10.09%
EPS Next Y11.26%
EPS Next 2Y11.65%
EPS Next 3Y11.41%
EPS Next 5Y16%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%3.95%
Revenue Next Year6.03%
Revenue Next 2Y6.95%
Revenue Next 3Y6.84%
Revenue Next 5Y7.46%
EBIT growth 1Y5.91%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year17.98%
EBIT Next 3Y12.23%
EBIT Next 5Y12.07%
FCF growth 1Y0.82%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y-0.82%
OCF growth 3Y4.36%
OCF growth 5Y11.25%