APPLE INC (AAPL)
US0378331005 - Common Stock
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAPL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AAPL had positive earnings in the past year.
In the past year AAPL had a positive cash flow from operations.
AAPL had positive earnings in each of the past 5 years.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAPL has a better Return On Assets (29.75%) than 96.88% of its industry peers.
AAPL has a better Return On Equity (135.31%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 46.37%, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AAPL is significantly above the industry average of 14.96%.
The last Return On Invested Capital (46.37%) for AAPL is above the 3 year average (44.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROIC | 46.37% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
1.3 Margins
Looking at the Profit Margin, with a value of 26.31%, AAPL belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a better Operating Margin (30.98%) than 96.88% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
AAPL's Gross Margin of 45.59% is amongst the best of the industry. AAPL outperforms 81.25% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% |
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
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.
AAPL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AAPL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.92 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL's Altman-Z score of 8.92 is amongst the best of the industry. AAPL outperforms 90.63% of its industry peers.
AAPL has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
The Debt to FCF ratio of AAPL (1.03) is better than 84.38% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that AAPL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.26, AAPL is doing worse than 75.00% of the companies in the same industry.
Although AAPL 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 | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 8.92 |
ROIC/WACC4.74
WACC9.78%
2.3 Liquidity
A Current Ratio of 1.04 indicates that AAPL should not have too much problems paying its short term obligations.
AAPL has a worse Current ratio (1.04) than 84.38% of its industry peers.
A Quick Ratio of 0.99 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a Quick ratio of 0.99. This is in the lower half of the industry: AAPL underperforms 78.13% 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 | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.17% over the past year.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.58% yearly.
AAPL shows a decrease in Revenue. In the last year, the revenue decreased by -0.90%.
The Revenue has been growing slightly by 7.61% on average over the past years.
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q0.66%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q-4.31%
3.2 Future
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
AAPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y9.51%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y4.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
AAPL is valuated quite expensively with a Price/Earnings ratio of 29.51.
The rest of the industry has a similar Price/Earnings ratio as AAPL.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (28.91), we can say AAPL is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.03, AAPL can be considered very expensive at the moment.
AAPL's Price/Forward Earnings ratio is in line with the industry average.
AAPL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.51 | ||
| Fwd PE | 26.03 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.74 | ||
| EV/EBITDA | 22.33 |
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)3.2
PEG (5Y)1.89
EPS Next 2Y9.14%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.54%, which is pretty low.
AAPL's Dividend Yield is a higher than the industry average which is at 2.70.
Compared to an average S&P500 Dividend Yield of 2.34, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of AAPL is nicely growing with an annual growth rate of 6.58%!
AAPL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AAPL pays out 15.08% of its income as dividend. This is a sustainable payout ratio.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.08%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
APPLE INC
NASDAQ:AAPL (5/15/2024, 7:25:42 PM)
Premarket: 190.28 +0.56 (+0.3%)189.72
+2.29 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners61.6%
Inst Owner Change-0.45%
Ins Owners0.07%
Ins Owner Change-0.82%
Market Cap2929.63B
Analysts77.5
Price Target206.41 (8.8%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Dividend Growth(5Y)6.58%
DP15.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.96%
Min EPS beat(2)0.05%
Max EPS beat(2)1.87%
EPS beat(4)4
Avg EPS beat(4)2.05%
Min EPS beat(4)0.05%
Max EPS beat(4)3.42%
EPS beat(8)6
Avg EPS beat(8)1.02%
EPS beat(12)9
Avg EPS beat(12)3.87%
EPS beat(16)13
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)3
Avg Revenue beat(12)-0.31%
Revenue beat(16)6
Avg Revenue beat(16)1.7%
PT rev (1m)0.92%
PT rev (3m)1.4%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.51 | ||
| Fwd PE | 26.03 | ||
| P/S | 7.68 | ||
| P/FCF | 28.74 | ||
| P/OCF | 26.5 | ||
| P/B | 39.49 | ||
| P/tB | 39.49 | ||
| EV/EBITDA | 22.33 |
EPS(TTM)6.43
EY3.39%
EPS(NY)7.29
Fwd EY3.84%
FCF(TTM)6.6
FCFY3.48%
OCF(TTM)7.16
OCFY3.77%
SpS24.71
BVpS4.8
TBVpS4.8
PEG (NY)3.2
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROCE | 55.36% | ||
| ROIC | 46.37% | ||
| ROICexc | 67.34% | ||
| ROICexgc | 67.34% | ||
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% | ||
| FCFM | 26.71% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
ROICexc(3y)60.39%
ROICexc(5y)52.51%
ROICexgc(3y)60.39%
ROICexgc(5y)52.51%
ROCE(3y)54.51%
ROCE(5y)44.27%
ROICexcg growth 3Y14.64%
ROICexcg growth 5Y15.74%
ROICexc growth 3Y14.64%
ROICexc growth 5Y15.74%
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
F-Score8
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 101.52% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 8.92 |
F-Score8
WACC9.78%
ROIC/WACC4.74
Cap/Depr(3y)96.6%
Cap/Depr(5y)87.91%
Cap/Sales(3y)2.87%
Cap/Sales(5y)3.06%
Profit Quality(3y)104.17%
Profit Quality(5y)109.38%
Growth
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q0.66%
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q-4.31%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y4.4%
EBIT growth 1Y5.29%
EBIT growth 3Y19.91%
EBIT growth 5Y10.02%
EBIT Next Year15.82%
EBIT Next 3Y9.61%
EBIT Next 5Y8.79%
FCF growth 1Y-3.66%
FCF growth 3Y10.72%
FCF growth 5Y9.2%
OCF growth 1Y-5.04%
OCF growth 3Y11.07%
OCF growth 5Y7.38%