APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
268.47 USD
-1.3 (-0.48%)
268.689 USD
+0.22 (+0.08%)
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make AAPL suitable for quality investing!
1. Profitability
1.1 Basic Checks
AAPL had positive earnings in the past year.
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's Return On Assets of 31.18% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
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's Return On Invested Capital of 55.64% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAPL is significantly above the industry average of 16.54%.
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 97.14% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL's Operating Margin of 31.97% is amongst the best of the industry. AAPL outperforms 97.14% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAPL is creating value.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
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 10.64 indicates that AAPL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.64, AAPL belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
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.
The Debt to FCF ratio of AAPL (1.00) is better 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 worse Debt to Equity ratio (1.17) than 65.71% 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 | 10.64 |
ROIC/WACC6.44
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.89 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a Current ratio of 0.89. This is in the lower half of the industry: AAPL underperforms 77.14% of its industry peers.
A Quick Ratio of 0.86 indicates that AAPL may have some problems paying 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
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.
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.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 6.43% in the last year.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.
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
AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.46% yearly.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.82% on average per year.
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
EPS Next 5Y13.46%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.05%
Revenue Next 5Y6.82%
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.
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 35.94, AAPL can be considered very expensive at the moment.
AAPL's Price/Earnings ratio is in line with the industry average.
AAPL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.06.
With a Price/Forward Earnings ratio of 32.12, AAPL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 32.12 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.34 | ||
| EV/EBITDA | 27.64 |
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.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)1.99
EPS Next 2Y10.96%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 1.87.
With a Dividend Yield of 0.39, AAPL pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
The dividend of AAPL has a limited annual growth rate of 4.95%.
AAPL has been paying a dividend for at least 10 years, so it has 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
AAPL pays out 13.77% 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.
DP13.77%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
268.47
-1.3 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners63.51%
Inst Owner Change-2.95%
Ins Owners0.06%
Ins Owner Change-0.73%
Market Cap3.98T
Revenue(TTM)416.16B
Net Income(TTM)112.01B
Analysts77.89
Price Target261.45 (-2.61%)
Short Float %0.75%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.84%
Min EPS beat(2)2.35%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.68%
EPS beat(12)9
Avg EPS beat(12)1.57%
EPS beat(16)12
Avg EPS beat(16)2.06%
Revenue beat(2)1
Avg Revenue beat(2)0.6%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)2.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)2.97%
Revenue beat(8)1
Avg Revenue beat(8)-0.71%
Revenue beat(12)1
Avg Revenue beat(12)-1.2%
Revenue beat(16)3
Avg Revenue beat(16)-0.81%
PT rev (1m)4.56%
PT rev (3m)9.31%
EPS NQ rev (1m)6.45%
EPS NQ rev (3m)6.7%
EPS NY rev (1m)2.39%
EPS NY rev (3m)5.38%
Revenue NQ rev (1m)5.34%
Revenue NQ rev (3m)5.52%
Revenue NY rev (1m)2.42%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 32.12 | ||
| P/S | 9.57 | ||
| P/FCF | 40.34 | ||
| P/OCF | 35.74 | ||
| P/B | 54.04 | ||
| P/tB | 54.04 | ||
| EV/EBITDA | 27.64 |
EPS(TTM)7.47
EY2.78%
EPS(NY)8.36
Fwd EY3.11%
FCF(TTM)6.66
FCFY2.48%
OCF(TTM)7.51
OCFY2.8%
SpS28.04
BVpS4.97
TBVpS4.97
PEG (NY)3.02
PEG (5Y)1.99
Graham Number28.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROCE | 68.72% | ||
| ROIC | 55.64% | ||
| ROICexc | 76.36% | ||
| ROICexgc | 76.36% | ||
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% | ||
| FCFM | 23.73% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
ROICexc(3y)72.58%
ROICexc(5y)66.97%
ROICexgc(3y)72.58%
ROICexgc(5y)66.97%
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 108.69% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.02% | ||
| Profit Quality | 88.18% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 10.64 |
F-Score8
WACC8.64%
ROIC/WACC6.44
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)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
EPS Next 5Y13.46%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.05%
Revenue Next 5Y6.82%
EBIT growth 1Y7.98%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year15.46%
EBIT Next 3Y11.4%
EBIT Next 5Y10.63%
FCF growth 1Y-9.23%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y-5.73%
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.
What is the valuation status of APPLE INC (AAPL) stock?
ChartMill assigns a valuation rating of 2 / 10 to APPLE INC (AAPL). This can be considered as Overvalued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the valuation of APPLE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLE INC (AAPL) is 35.94 and the Price/Book (PB) ratio is 54.04.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.