APPLE INC (AAPL)
US0378331005 - Common Stock
Overall AAPL gets a fundamental rating of 6 out of 10. We evaluated AAPL against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL gets an excellent profitability rating and is at the same time showing great financial health properties. AAPL is valied quite expensively at the moment, while 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.
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 25.68%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 164.59%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL has a better Return On Invested Capital (50.01%) than 96.88% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 46.44%. This is significantly above the industry average of 16.81%.
The last Return On Invested Capital (50.01%) for AAPL is above the 3 year average (46.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 164.59% | ||
| ROIC | 50.01% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)46.44%
ROIC(5y)40.23%
1.3 Margins
AAPL has a Profit Margin of 23.97%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a better Operating Margin (31.51%) than 96.88% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a better Gross Margin (46.21%) than 78.13% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 23.97% | ||
| GM | 46.21% |
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.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
Compared to 1 year ago, AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.76 indicates that AAPL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.76, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
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's Debt to FCF ratio of 0.98 is amongst the best of the industry. AAPL outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 1.68 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL has a Debt to Equity ratio of 1.68. This is in the lower half of the industry: AAPL underperforms 75.00% 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 | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 8.76 |
ROIC/WACC4.57
WACC10.94%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, AAPL is doing worse than 87.50% of the companies in the same industry.
AAPL has a Quick Ratio of 0.87. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
AAPL's Quick ratio of 0.83 is on the low side compared to the rest of the industry. AAPL is outperformed by 68.75% 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 | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.29%, which is quite good.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
The Revenue has been growing slightly by 2.02% in the past year.
AAPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
EPS 1Y (TTM)10.29%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.33%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%6.07%
3.2 Future
AAPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.71% yearly.
AAPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y11.64%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
EPS Next 5Y4.71%
Revenue Next Year6.08%
Revenue Next 2Y7.07%
Revenue Next 3Y6.77%
Revenue Next 5Y3.05%
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 decreasing.
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
A Price/Earnings ratio of 33.85 indicates a quite expensive valuation of AAPL.
The rest of the industry has a similar Price/Earnings ratio as AAPL.
AAPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 30.33.
AAPL's Price/Forward Earnings is on the same level as the industry average.
AAPL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.85 | ||
| Fwd PE | 30.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.75 | ||
| EV/EBITDA | 25.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
AAPL's earnings are expected to grow with 12.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.91
PEG (5Y)1.89
EPS Next 2Y12.07%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.98, AAPL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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.
Dividend Growth(5Y)5.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.25% of the earnings are spent on dividend by AAPL. This is a low number and sustainable payout ratio.
AAPL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.25%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
APPLE INC
NASDAQ:AAPL (11/21/2024, 8:10:13 PM)
Premarket: 228.36 -0.16 (-0.07%)228.52
-0.48 (-0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners69.29%
Inst Owner Change12.3%
Ins Owners0.07%
Ins Owner Change-1.93%
Market Cap3454.27B
Analysts78.89
Price Target245.59 (7.47%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)5.3%
DP16.25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.15%
Min EPS beat(2)0.35%
Max EPS beat(2)1.95%
EPS beat(4)3
Avg EPS beat(4)1.03%
Min EPS beat(4)-0.02%
Max EPS beat(4)1.95%
EPS beat(8)6
Avg EPS beat(8)1.2%
EPS beat(12)9
Avg EPS beat(12)1.98%
EPS beat(16)12
Avg EPS beat(16)6.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)0.85%
PT rev (1m)0.08%
PT rev (3m)2.82%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.85 | ||
| Fwd PE | 30.33 | ||
| P/S | 8.83 | ||
| P/FCF | 31.75 | ||
| P/OCF | 29.21 | ||
| P/B | 60.65 | ||
| P/tB | 60.65 | ||
| EV/EBITDA | 25.62 |
EPS(TTM)6.75
EY2.95%
EPS(NY)7.54
Fwd EY3.3%
FCF(TTM)7.2
FCFY3.15%
OCF(TTM)7.82
OCFY3.42%
SpS25.87
BVpS3.77
TBVpS3.77
PEG (NY)2.91
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 164.59% | ||
| ROCE | 65.34% | ||
| ROIC | 50.01% | ||
| ROICexc | 74.45% | ||
| ROICexgc | 74.45% | ||
| OM | 31.51% | ||
| PM (TTM) | 23.97% | ||
| GM | 46.21% | ||
| FCFM | 27.83% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)46.44%
ROIC(5y)40.23%
ROICexc(3y)65.06%
ROICexc(5y)57.49%
ROICexgc(3y)65.06%
ROICexgc(5y)57.49%
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-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 82.54% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.82% | ||
| Profit Quality | 116.08% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 8.76 |
F-Score6
WACC10.94%
ROIC/WACC4.57
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)10.29%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.33%
EPS Next Y11.64%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
EPS Next 5Y4.71%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%6.07%
Revenue Next Year6.08%
Revenue Next 2Y7.07%
Revenue Next 3Y6.77%
Revenue Next 5Y3.05%
EBIT growth 1Y7.8%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year18.43%
EBIT Next 3Y12.04%
EBIT Next 5Y7.07%
FCF growth 1Y9.26%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y6.98%
OCF growth 3Y4.36%
OCF growth 5Y11.25%