APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to AAPL. AAPL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, AAPL is valued expensive at the moment. This makes AAPL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AAPL was profitable.
AAPL had a positive operating cash flow in the past year.
In the past 5 years AAPL has always been profitable.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
AAPL has a Return On Assets of 27.94%. This is amongst the best in the industry. AAPL outperforms 96.77% of its industry peers.
Looking at the Return On Equity, with a value of 144.03%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL has a Return On Invested Capital of 52.80%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 48.83%. This is significantly above the industry average of 18.10%.
The 3 year average ROIC (48.83%) for AAPL 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
Looking at the Profit Margin, with a value of 24.30%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL's Profit Margin has improved in the last couple of years.
The Operating Margin of AAPL (31.76%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
Looking at the Gross Margin, with a value of 46.52%, AAPL belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Gross Margin of AAPL 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), AAPL is creating value.
AAPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
The debt/assets ratio for AAPL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.31 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a Altman-Z score of 10.31. This is amongst the best in the industry. AAPL outperforms 96.77% of its industry peers.
AAPL 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.
AAPL has a Debt to FCF ratio of 0.98. This is amongst the best in the industry. AAPL outperforms 90.32% of its industry peers.
AAPL has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
AAPL has a worse Debt to Equity ratio (1.29) than 70.97% 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 | 1.29 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 10.31 |
ROIC/WACC5.92
WACC8.92%
2.3 Liquidity
AAPL has a Current Ratio of 0.92. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.92, AAPL is doing worse than 80.65% of the companies in the same industry.
AAPL has a Quick Ratio of 0.92. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AAPL (0.88) is worse than 61.29% 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 | 0.92 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.57% over the past year.
Measured over the past years, AAPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.90% on average per year.
Looking at the last year, AAPL 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
AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.00% yearly.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y10.96%
EPS Next 2Y11.41%
EPS Next 3Y11.23%
EPS Next 5Y16%
Revenue Next Year4.91%
Revenue Next 2Y6.39%
Revenue Next 3Y6.34%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.60, AAPL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AAPL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.53. AAPL is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 29.61 indicates a quite expensive valuation of AAPL.
AAPL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (22.65), we can say AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 29.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAPL is on the same level as its industry peers.
AAPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.95 | ||
| EV/EBITDA | 27.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAPL does not grow enough to justify the current Price/Earnings ratio.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.25
PEG (5Y)1.99
EPS Next 2Y11.41%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.41%, which is pretty low.
AAPL's Dividend Yield is a higher than the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 2.27, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of AAPL has a limited annual growth rate of 5.30%.
AAPL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AAPL decreased recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AAPL pays out 15.88% 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.
DP15.88%
EPS Next 2Y11.41%
EPS Next 3Y11.23%
NASDAQ:AAPL (2/25/2025, 3:04:09 PM)
248.1
+1 (+0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.58%
Inst Owner Change-86.79%
Ins Owners0.06%
Ins Owner Change-3.02%
Market Cap3730.90B
Analysts76.3
Price Target255.02 (2.79%)
Short Float %0.85%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.88%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-1.82%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-1.82%
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)2.78%
PT rev (3m)3.84%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-2.33%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 29.61 | ||
| P/S | 9.43 | ||
| P/FCF | 37.95 | ||
| P/OCF | 34.45 | ||
| P/B | 55.89 | ||
| P/tB | 55.89 | ||
| EV/EBITDA | 27.18 |
EPS(TTM)6.97
EY2.81%
EPS(NY)8.38
Fwd EY3.38%
FCF(TTM)6.54
FCFY2.63%
OCF(TTM)7.2
OCFY2.9%
SpS26.32
BVpS4.44
TBVpS4.44
PEG (NY)3.25
PEG (5Y)1.99
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 | 10.31 |
F-Score7
WACC8.92%
ROIC/WACC5.92
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 Y10.96%
EPS Next 2Y11.41%
EPS Next 3Y11.23%
EPS Next 5Y16%
Revenue 1Y (TTM)2.61%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%3.95%
Revenue Next Year4.91%
Revenue Next 2Y6.39%
Revenue Next 3Y6.34%
Revenue Next 5Y7.46%
EBIT growth 1Y5.91%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year15.76%
EBIT Next 3Y11.06%
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%