258.27 USD
+2.86 (+1.12%)
258.79 USD
+0.52 (+0.2%)
We assign a fundamental rating of 7 out of 10 to AAPL. AAPL was compared to 35 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 has a correct valuation and a medium growth rate. These ratings could make AAPL a good candidate 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.
- 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
- Looking at the Return On Assets, with a value of 31.18%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- AAPL has a Return On Equity of 151.91%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
- AAPL has a Return On Invested Capital of 55.64%. 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 51.04%. This is significantly above the industry average of 16.06%.
- The 3 year average ROIC (51.04%) for AAPL is below the current ROIC(55.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROIC | 55.64% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
1.3 Margins
- AAPL has a Profit Margin of 26.92%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
- AAPL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 31.97%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- AAPL's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 46.91%, AAPL belongs to the best of the industry, outperforming 82.86% 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 | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% |
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
- AAPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, AAPL has less shares outstanding
- 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
- AAPL has an Altman-Z score of 10.29. 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 10.29, AAPL belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- AAPL has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
- AAPL's Debt to FCF ratio of 1.00 is amongst the best of the industry. AAPL outperforms 88.57% of its industry peers.
- A Debt/Equity ratio of 1.17 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 1.17, AAPL is doing worse than 60.00% 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 | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 10.29 |
ROIC/WACC6.37
WACC8.74%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that AAPL may have some problems paying its short term obligations.
- AAPL has a worse Current ratio (0.89) than 68.57% of its industry peers.
- AAPL has a Quick Ratio of 0.89. 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 0.86 is in line compared to the rest of the industry. AAPL outperforms 54.29% of its industry peers.
- AAPL does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.67%, 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 18.04% yearly.
- The Revenue has been growing slightly by 6.43% in the past year.
- 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)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
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 13.24% on average per year.
- Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y12.74%
EPS Next 2Y11.64%
EPS Next 3Y11.11%
EPS Next 5Y13.24%
Revenue Next Year9.06%
Revenue Next 2Y7.96%
Revenue Next 3Y7.41%
Revenue Next 5Y6.85%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- With a Price/Earnings ratio of 34.57, AAPL can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AAPL is valued a bit cheaper than 65.71% of the companies in the same industry.
- AAPL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.87.
- A Price/Forward Earnings ratio of 30.67 indicates a quite expensive valuation of AAPL.
- AAPL's Price/Forward Earnings is on the same level as the industry average.
- AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.57 | ||
| Fwd PE | 30.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AAPL is valued a bit cheaper than 65.71% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL indicates a somewhat cheap valuation: AAPL is cheaper than 68.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.64 | ||
| EV/EBITDA | 26.48 |
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)2.71
PEG (5Y)1.92
EPS Next 2Y11.64%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
- AAPL has a yearly dividend return of 0.42%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.66, AAPL pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.42, AAPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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.
- AAPL has decreased its dividend recently.
Dividend Growth(5Y)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 13.77% 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.
DP13.77%
EPS Next 2Y11.64%
EPS Next 3Y11.11%
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 12.74% 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 13.77%.