APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL • US0378331005
255.78 USD
-5.95 (-2.27%)
At close: Feb 13, 2026
255.3 USD
-0.48 (-0.19%)
Pre-Market: 2/17/2026, 7:34:46 AM
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 36 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. AAPL has a decent growth rate and is not valued too expensively. These ratings would make AAPL suitable 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.
- Each year in the past 5 years AAPL has been profitable.
- AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AAPL has a Return On Assets of 31.05%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
- AAPL has a better Return On Equity (133.55%) than 97.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 54.20%, AAPL belongs to the top of the industry, outperforming 100.00% 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 16.56%.
- The 3 year average ROIC (50.93%) for AAPL is below the current ROIC(54.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROIC | 54.2% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
1.3 Margins
- AAPL's Profit Margin of 27.04% is amongst the best of the industry. AAPL outperforms 97.22% of its industry peers.
- In the last couple of years the Profit Margin of AAPL has grown nicely.
- AAPL has a better Operating Margin (32.38%) than 100.00% of its industry peers.
- AAPL's Operating Margin has improved in the last couple of years.
- AAPL has a Gross Margin of 47.33%. This is amongst the best in the industry. AAPL outperforms 83.33% of its industry peers.
- AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% |
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
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.
- AAPL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
- AAPL has a better debt/assets ratio than last year.
2.2 Solvency
- AAPL has an Altman-Z score of 10.11. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.11, AAPL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- AAPL has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
- The Debt to FCF ratio of AAPL (0.73) is better than 88.89% of its industry peers.
- AAPL has a Debt/Equity ratio of 0.89. This is a neutral value indicating AAPL is somewhat dependend on debt financing.
- AAPL has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: AAPL underperforms 61.11% of its industry peers.
- 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 | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 10.11 |
ROIC/WACC6.33
WACC8.56%
2.3 Liquidity
- AAPL has a Current Ratio of 0.97. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.97, AAPL is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- AAPL has a Quick Ratio of 0.97. 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 Quick ratio, with a value of 0.94, AAPL is in line with its industry, outperforming 52.78% of the companies in the same industry.
- 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 | 0.97 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.49% 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 18.04% on average per year.
- The Revenue has grown by 10.07% in the past year. This is quite good.
- Measured over the past years, AAPL shows a quite strong growth in Revenue. The Revenue has been growing by 8.68% on average per year.
EPS 1Y (TTM)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
3.2 Future
- The Earnings Per Share is expected to grow by 14.30% 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 7.46% yearly.
EPS Next Y15.59%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
EPS Next 5Y14.3%
Revenue Next Year11.56%
Revenue Next 2Y9.01%
Revenue Next 3Y7.79%
Revenue Next 5Y7.46%
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.
- 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
- Based on the Price/Earnings ratio of 32.34, the valuation of AAPL can be described as expensive.
- Based on the Price/Earnings ratio, AAPL is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.19, AAPL is valued at the same level.
- Based on the Price/Forward Earnings ratio of 27.02, the valuation of AAPL can be described as expensive.
- AAPL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. AAPL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.34 | ||
| Fwd PE | 27.02 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AAPL is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AAPL is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 24.6 |
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.
- The excellent profitability rating of AAPL may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)1.79
EPS Next 2Y12.56%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- AAPL has a yearly dividend return of 0.40%, which is pretty low.
- AAPL's Dividend Yield is a higher than the industry average which is at 0.65.
- With a Dividend Yield of 0.40, AAPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
- The dividend of AAPL has a limited annual growth rate of 4.95%.
- AAPL has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of AAPL decreased recently.
Dividend Growth(5Y)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- AAPL pays out 13.15% 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.
DP13.15%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
255.78
-5.95 (-2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners64.27%
Inst Owner Change0.8%
Ins Owners0.06%
Ins Owner Change-0.32%
Market Cap3.76T
Revenue(TTM)435.62B
Net Income(TTM)117.78B
Analysts77.41
Price Target295.02 (15.34%)
Short Float %0.81%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-09 2026-02-09 (0.26)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.35%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)3.33%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.97%
EPS beat(12)10
Avg EPS beat(12)2.32%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)2.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-0.62%
Revenue beat(16)3
Avg Revenue beat(16)-0.85%
PT rev (1m)1.32%
PT rev (3m)12.84%
EPS NQ rev (1m)5.5%
EPS NQ rev (3m)5.18%
EPS NY rev (1m)2.57%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)4.33%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.34 | ||
| Fwd PE | 27.02 | ||
| P/S | 8.63 | ||
| P/FCF | 30.49 | ||
| P/OCF | 27.76 | ||
| P/B | 42.64 | ||
| P/tB | 42.64 | ||
| EV/EBITDA | 24.6 |
EPS(TTM)7.91
EY3.09%
EPS(NY)9.46
Fwd EY3.7%
FCF(TTM)8.39
FCFY3.28%
OCF(TTM)9.21
OCFY3.6%
SpS29.63
BVpS6
TBVpS6
PEG (NY)2.07
PEG (5Y)1.79
Graham Number32.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROCE | 65.03% | ||
| ROIC | 54.2% | ||
| ROICexc | 78.06% | ||
| ROICexgc | 78.06% | ||
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% | ||
| FCFM | 28.31% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
ROICexc(3y)72.42%
ROICexc(5y)66.83%
ROICexgc(3y)72.42%
ROICexgc(5y)66.83%
ROCE(3y)63.07%
ROCE(5y)59.52%
ROICexgc growth 3Y6.76%
ROICexgc growth 5Y12.61%
ROICexc growth 3Y6.76%
ROICexc growth 5Y12.61%
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
F-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 102.67% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | 104.71% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 10.11 |
F-Score8
WACC8.56%
ROIC/WACC6.33
Cap/Depr(3y)95.46%
Cap/Depr(5y)96.21%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.82%
Profit Quality(3y)102.31%
Profit Quality(5y)103.35%
High Growth Momentum
Growth
EPS 1Y (TTM)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
EPS Next Y15.59%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
EPS Next 5Y14.3%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
Revenue Next Year11.56%
Revenue Next 2Y9.01%
Revenue Next 3Y7.79%
Revenue Next 5Y7.46%
EBIT growth 1Y12.25%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year19.09%
EBIT Next 3Y11.52%
EBIT Next 5Y10.87%
FCF growth 1Y15.4%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y16.35%
OCF growth 3Y-3%
OCF growth 5Y6.68%
APPLE INC / AAPL FAQ
What is the ChartMill fundamental rating of APPLE INC (AAPL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to AAPL.
Can you provide the valuation status for APPLE INC?
ChartMill assigns a valuation rating of 4 / 10 to APPLE INC (AAPL). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the expected EPS growth for APPLE INC (AAPL) stock?
The Earnings per Share (EPS) of APPLE INC (AAPL) is expected to grow by 15.59% in the next year.
How sustainable is the dividend of APPLE INC (AAPL) stock?
The dividend rating of APPLE INC (AAPL) is 5 / 10 and the dividend payout ratio is 13.15%.