APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 32 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. While showing a medium growth rate, AAPL is valued expensive at the moment. With these ratings, AAPL could be worth investigating further 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
AAPL has a Return On Assets of 29.37%. This is amongst the best in the industry. AAPL outperforms 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.
With an excellent Return On Invested Capital value of 56.03%, AAPL belongs to the best 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 16.14%.
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.
In the last couple of years the Operating Margin of AAPL has grown nicely.
AAPL has a Gross Margin of 46.63%. This is amongst the best in the industry. AAPL outperforms 81.25% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| 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
AAPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AAPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 9.44. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL has a Altman-Z score of 9.44. This is amongst the best in the industry. AAPL outperforms 93.75% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.00, AAPL belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
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 | 9.44 |
ROIC/WACC6.28
WACC8.92%
2.3 Liquidity
AAPL has a Current Ratio of 0.82. 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 has a Current ratio of 0.82. This is amonst the worse of the industry: AAPL underperforms 84.38% of its industry peers.
AAPL has a Quick Ratio of 0.82. 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 0.78 is in line compared 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
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.26%, which is quite good.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 4.91% in the last 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.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.49%
Revenue Next Year4.28%
Revenue Next 2Y4.99%
Revenue Next 3Y5.22%
Revenue Next 5Y6.22%
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 29.79, the valuation of AAPL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AAPL is on the same level as its industry peers.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 26.62.
AAPL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAPL is more expensive than 62.50% of the companies in the same industry.
AAPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL indicates a somewhat cheap valuation: AAPL is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.03 | ||
| EV/EBITDA | 22.76 |
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)3.57
PEG (5Y)1.66
EPS Next 2Y8.4%
EPS Next 3Y8.73%
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 1.95.
Compared to an average S&P500 Dividend Yield of 2.35, AAPL's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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.
The dividend of AAPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.74%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
211.18
+1.16 (+0.55%)
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 Cap3154.15B
Analysts76.79
Price Target235.64 (11.58%)
Short Float %0.75%
Short Ratio2.01
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)0.06%
PT rev (3m)-8%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 26.62 | ||
| P/S | 7.88 | ||
| P/FCF | 32.03 | ||
| P/OCF | 28.79 | ||
| P/B | 47.22 | ||
| P/tB | 47.22 | ||
| EV/EBITDA | 22.76 |
EPS(TTM)7.09
EY3.36%
EPS(NY)7.93
Fwd EY3.76%
FCF(TTM)6.59
FCFY3.12%
OCF(TTM)7.34
OCFY3.47%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.57
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 | 9.44 |
F-Score7
WACC8.92%
ROIC/WACC6.28
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 Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.28%
Revenue Next 2Y4.99%
Revenue Next 3Y5.22%
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%