APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
Overall AAPL gets a fundamental rating of 7 out of 10. We evaluated AAPL against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making AAPL a very profitable company, without any liquidiy or solvency issues. 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
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.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AAPL (29.37%) is better than 100.00% of its industry peers.
AAPL has a Return On Equity of 145.66%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
The Return On Invested Capital of AAPL (56.03%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAPL is significantly above the industry average of 16.14%.
The last Return On Invested Capital (56.03%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.37% | ||
| ROE | 145.66% | ||
| ROIC | 56.03% |
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
AAPL has a Profit Margin of 24.30%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
AAPL has a Operating Margin of 31.81%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a Gross Margin of 46.63%. This is amongst the best in the industry. AAPL outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.63% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAPL is creating value.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
AAPL has less shares outstanding than it did 5 years ago.
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.52 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a better Altman-Z score (9.52) than 93.75% of its industry peers.
The Debt to FCF ratio of AAPL is 1.00, which is an excellent value as it means it would take AAPL, only 1.00 years of fcf income to pay off all of its debts.
AAPL has a better Debt to FCF ratio (1.00) than 90.63% of its industry peers.
A Debt/Equity ratio of 1.27 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 1.27, AAPL is doing worse than 68.75% 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 | 1.27 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.52 |
ROIC/WACC6.35
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.82 indicates that AAPL may have some problems paying its short term obligations.
AAPL's Current ratio of 0.82 is on the low side compared to the rest of the industry. AAPL is outperformed by 84.38% of its industry peers.
A Quick Ratio of 0.78 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a Quick ratio of 0.78. This is comparable to the rest of the industry: AAPL outperforms 40.63% 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 | 0.82 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.26% 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.
The Revenue has been growing slightly by 4.91% in the past year.
Measured over the past years, AAPL shows a quite strong growth in Revenue. The Revenue has been growing by 8.49% on average per year.
EPS 1Y (TTM)10.26%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%7.84%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
3.2 Future
Based on estimates for the next years, AAPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
AAPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.22% yearly.
EPS Next Y8.37%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5Y12.49%
Revenue Next Year4.27%
Revenue Next 2Y4.94%
Revenue Next 3Y5.25%
Revenue Next 5Y6.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.78, the valuation of AAPL can be described as expensive.
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 (27.30), we can say AAPL is valued inline with the index average.
A Price/Forward Earnings ratio of 26.61 indicates a quite expensive valuation of AAPL.
Based on the Price/Forward Earnings ratio, AAPL is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
AAPL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.78 | ||
| Fwd PE | 26.61 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AAPL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.02 | ||
| EV/EBITDA | 23.01 |
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 AAPL may justify a higher PE ratio.
PEG (NY)3.56
PEG (5Y)1.66
EPS Next 2Y8.43%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 1.92.
With a Dividend Yield of 0.49, AAPL pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
15.74% of the earnings are spent on dividend by AAPL. This is a low number and sustainable payout ratio.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.74%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
211.16
-1.25 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.72%
Inst Owner Change0.01%
Ins Owners0.06%
Ins Owner Change0.35%
Market Cap3153.85B
Analysts76.79
Price Target235.64 (11.59%)
Short Float %0.69%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.58%
Max EPS beat(2)0.15%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-0.58%
Max EPS beat(4)1.95%
EPS beat(8)6
Avg EPS beat(8)1.25%
EPS beat(12)8
Avg EPS beat(12)0.83%
EPS beat(16)11
Avg EPS beat(16)3.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-1.31%
Revenue beat(12)0
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-0.56%
PT rev (1m)-0.8%
PT rev (3m)-8%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-5.6%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.78 | ||
| Fwd PE | 26.61 | ||
| P/S | 7.88 | ||
| P/FCF | 32.02 | ||
| P/OCF | 28.79 | ||
| P/B | 47.22 | ||
| P/tB | 47.22 | ||
| EV/EBITDA | 23.01 |
EPS(TTM)7.09
EY3.36%
EPS(NY)7.94
Fwd EY3.76%
FCF(TTM)6.59
FCFY3.12%
OCF(TTM)7.34
OCFY3.47%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.56
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.37% | ||
| ROE | 145.66% | ||
| ROCE | 68.23% | ||
| ROIC | 56.03% | ||
| ROICexc | 74.88% | ||
| ROICexgc | 74.88% | ||
| OM | 31.81% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.63% | ||
| FCFM | 24.6% |
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 Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 96.24% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.89% | ||
| Profit Quality | 101.23% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 9.52 |
F-Score7
WACC8.83%
ROIC/WACC6.35
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)10.26%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%7.84%
EPS Next Y8.37%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.27%
Revenue Next 2Y4.94%
Revenue Next 3Y5.25%
Revenue Next 5Y6.22%
EBIT growth 1Y7.72%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year13.64%
EBIT Next 3Y8.92%
EBIT Next 5Y9.21%
FCF growth 1Y1.02%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y-0.03%
OCF growth 3Y4.36%
OCF growth 5Y11.25%