APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
238.131 USD
-0.86 (-0.36%)
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making AAPL a very profitable company, without any liquidiy or solvency issues. AAPL is quite expensive at the moment. 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.
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 29.95%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL's Return On Equity of 150.81% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a better Return On Invested Capital (55.09%) than 100.00% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 48.83%. This is significantly above the industry average of 14.98%.
The last Return On Invested Capital (55.09%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.95% | ||
| ROE | 150.81% | ||
| ROIC | 55.09% |
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
With an excellent Profit Margin value of 24.30%, AAPL belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
The Operating Margin of AAPL (31.87%) is better than 96.97% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 46.68%, AAPL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.87% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.68% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AAPL is creating value.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
Compared to 1 year ago, AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.40 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL's Altman-Z score of 10.40 is amongst the best of the industry. AAPL outperforms 90.91% of its industry peers.
The Debt to FCF ratio of AAPL is 1.06, which is an excellent value as it means it would take AAPL, only 1.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AAPL (1.06) is better than 84.85% of its industry peers.
A Debt/Equity ratio of 1.40 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 1.40, AAPL is doing worse than 66.67% 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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 10.4 |
ROIC/WACC6.44
WACC8.55%
2.3 Liquidity
AAPL has a Current Ratio of 0.87. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AAPL (0.87) is worse than 78.79% of its industry peers.
AAPL has a Quick Ratio of 0.87. 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 Quick ratio (0.83) which is in line with 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 | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.50%, 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 17.90% on average per year.
The Revenue has been growing slightly by 5.97% in the past year.
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
EPS 1Y (TTM)10.5%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.14%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
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 12.86% on average per year.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y11.43%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
EPS Next 5Y12.86%
Revenue Next Year6.1%
Revenue Next 2Y5.78%
Revenue Next 3Y5.84%
Revenue Next 5Y6.43%
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
The Price/Earnings ratio is 32.80, which means the current valuation is very expensive for AAPL.
AAPL's Price/Earnings ratio is a bit cheaper when compared to the industry. AAPL is cheaper than 60.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (27.20), we can say AAPL is valued slightly more expensively.
The Price/Forward Earnings ratio is 29.21, which means the current valuation is very expensive for AAPL.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (22.70), we can say AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.8 | ||
| Fwd PE | 29.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
AAPL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.74 | ||
| EV/EBITDA | 25.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)1.83
EPS Next 2Y9.9%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 1.85, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, AAPL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of AAPL has a limited annual growth rate of 5.30%.
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)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
15.47% 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.
DP15.47%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
NASDAQ:AAPL (9/18/2025, 9:45:10 AM)
238.131
-0.86 (-0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.87%
Inst Owner Change0.6%
Ins Owners0.06%
Ins Owner Change-1.02%
Market Cap3533.96B
Analysts77.45
Price Target247.07 (3.75%)
Short Float %0.78%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.38%
Min EPS beat(2)-0.58%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)1.81%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.74%
EPS beat(12)8
Avg EPS beat(12)1.34%
EPS beat(16)11
Avg EPS beat(16)1.81%
Revenue beat(2)1
Avg Revenue beat(2)0.85%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)2.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
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)-1.1%
Revenue beat(16)3
Avg Revenue beat(16)-0.93%
PT rev (1m)3.3%
PT rev (3m)4.91%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)5.73%
EPS NY rev (1m)2.85%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.63%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.8 | ||
| Fwd PE | 29.21 | ||
| P/S | 8.65 | ||
| P/FCF | 36.74 | ||
| P/OCF | 32.55 | ||
| P/B | 53.68 | ||
| P/tB | 53.68 | ||
| EV/EBITDA | 25.15 |
EPS(TTM)7.26
EY3.05%
EPS(NY)8.15
Fwd EY3.42%
FCF(TTM)6.48
FCFY2.72%
OCF(TTM)7.32
OCFY3.07%
SpS27.53
BVpS4.44
TBVpS4.44
PEG (NY)2.87
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.95% | ||
| ROE | 150.81% | ||
| ROCE | 68.4% | ||
| ROIC | 55.09% | ||
| ROICexc | 76.14% | ||
| ROICexgc | 76.14% | ||
| OM | 31.87% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.68% | ||
| FCFM | 23.54% |
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 Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 107.83% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.62% | ||
| Profit Quality | 96.88% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 10.4 |
F-Score7
WACC8.55%
ROIC/WACC6.44
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)10.5%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.14%
EPS Next Y11.43%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
EPS Next 5Y12.86%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
Revenue Next Year6.1%
Revenue Next 2Y5.78%
Revenue Next 3Y5.84%
Revenue Next 5Y6.43%
EBIT growth 1Y7.98%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year16.74%
EBIT Next 3Y9.62%
EBIT Next 5Y9.62%
FCF growth 1Y-4.76%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y-3.99%
OCF growth 3Y4.36%
OCF growth 5Y11.25%