256.38 USD
+8.34 (+3.36%)
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 is not valued too expensively and it also shows a decent growth rate. 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.
- 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
- With an excellent Return On Assets value of 31.18%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 151.91%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 55.64%, 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 16.06%.
- 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
- Looking at the Profit Margin, with a value of 26.92%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of AAPL has grown nicely.
- 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.
- In the last couple of years the Operating Margin of AAPL has grown nicely.
- Looking at the Gross Margin, with a value of 46.91%, AAPL belongs to the top 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AAPL 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
- An Altman-Z score of 9.97 indicates that AAPL is not in any danger for bankruptcy at the moment.
- AAPL has a better Altman-Z score (9.97) than 91.43% 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 88.57% of its industry peers.
- AAPL has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
- AAPL has a Debt to Equity ratio of 1.17. This is in the lower half of the industry: AAPL underperforms 60.00% 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 | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.97 |
ROIC/WACC6.36
WACC8.75%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that AAPL may have some problems paying its short term obligations.
- AAPL's Current ratio of 0.89 is on the low side compared to the rest of the industry. AAPL is outperformed by 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.
- Looking at the Quick ratio, with a value of 0.86, AAPL is in line with its industry, outperforming 54.29% 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 | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.67% over the past year.
- The Earnings Per Share has been growing by 18.04% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.43% in the past year.
- AAPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.68% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 34.32, the valuation of AAPL can be described as expensive.
- Based on the Price/Earnings ratio, AAPL is valued a bit cheaper than 65.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (27.21), we can say AAPL is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 30.44, the valuation of AAPL can be described as expensive.
- AAPL's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. AAPL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.32 | ||
| Fwd PE | 30.44 |
4.2 Price Multiples
- 62.86% of the companies in the same industry are more expensive than AAPL, based on the Enterprise Value to EBITDA ratio.
- AAPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AAPL is cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 25.44 |
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)2.69
PEG (5Y)1.9
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.
- AAPL's Dividend Yield is a higher than the industry average which is at 0.66.
- With a Dividend Yield of 0.42, AAPL pays less dividend than the S&P500 average, which is at 1.81.
| 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.
- The dividend of AAPL is growing, but earnings are growing more, so the dividend growth is 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%.