APPLE INC (AAPL)
US0378331005 - Common Stock
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL gets an excellent profitability rating and is at the same time showing great financial health properties. AAPL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make AAPL a good candidate 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.
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
Looking at the Return On Assets, with a value of 25.68%, AAPL belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 164.59%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of AAPL (50.01%) is better than 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 17.32%.
The 3 year average ROIC (46.44%) for AAPL is below the current ROIC(50.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 164.59% | ||
| ROIC | 50.01% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)46.44%
ROIC(5y)40.23%
1.3 Margins
AAPL has a better Profit Margin (23.97%) than 100.00% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
AAPL's Operating Margin of 31.51% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a better Gross Margin (46.21%) than 80.65% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 23.97% | ||
| GM | 46.21% |
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.
Compared to 1 year ago, AAPL has less shares outstanding
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
AAPL has an Altman-Z score of 9.53. 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 9.53, AAPL belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
AAPL has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
AAPL's Debt to FCF ratio of 0.98 is amongst the best of the industry. AAPL outperforms 90.32% of its industry peers.
A Debt/Equity ratio of 1.68 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 1.68, AAPL is doing worse than 74.19% of the companies in the same industry.
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 | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 9.53 |
ROIC/WACC4.22
WACC11.86%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
With a Current ratio value of 0.87, AAPL is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
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's Quick ratio of 0.83 is on the low side compared to the rest of the industry. AAPL is outperformed by 67.74% 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 | 0.87 | ||
| 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 10.29%, which is quite good.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.02% in the past 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)10.29%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.33%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%6.07%
3.2 Future
The Earnings Per Share is expected to grow by 13.76% on average over the next years. This is quite good.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
EPS Next Y11.74%
EPS Next 2Y12.12%
EPS Next 3Y12.13%
EPS Next 5Y13.76%
Revenue Next Year6.12%
Revenue Next 2Y7.05%
Revenue Next 3Y6.83%
Revenue Next 5Y7.15%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.68, AAPL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as AAPL.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (27.17), we can say AAPL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 33.72, the valuation of AAPL can be described as expensive.
AAPL's Price/Forward Earnings ratio is in line with the industry average.
AAPL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.68 | ||
| Fwd PE | 33.72 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA ratio is in line with the industry average.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.34 | ||
| EV/EBITDA | 28.54 |
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.
AAPL's earnings are expected to grow with 12.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)2.1
EPS Next 2Y12.12%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.03, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.40, AAPL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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.
The dividend of AAPL decreased recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AAPL pays out 16.25% of its income as dividend. This is a sustainable payout ratio.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.25%
EPS Next 2Y12.12%
EPS Next 3Y12.13%
APPLE INC
NASDAQ:AAPL (12/23/2024, 12:58:10 PM)
254.36
-0.13 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners60.98%
Inst Owner Change1.02%
Ins Owners0.06%
Ins Owner Change-4.31%
Market Cap3844.86B
Analysts78.91
Price Target246.3 (-3.17%)
Short Float %1.04%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Dividend Growth(5Y)5.3%
DP16.25%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.15%
Min EPS beat(2)0.35%
Max EPS beat(2)1.95%
EPS beat(4)3
Avg EPS beat(4)1.03%
Min EPS beat(4)-0.02%
Max EPS beat(4)1.95%
EPS beat(8)6
Avg EPS beat(8)1.2%
EPS beat(12)9
Avg EPS beat(12)1.98%
EPS beat(16)12
Avg EPS beat(16)6.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)0.85%
PT rev (1m)0.29%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.68 | ||
| Fwd PE | 33.72 | ||
| P/S | 9.83 | ||
| P/FCF | 35.34 | ||
| P/OCF | 32.51 | ||
| P/B | 67.51 | ||
| P/tB | 67.51 | ||
| EV/EBITDA | 28.54 |
EPS(TTM)6.75
EY2.65%
EPS(NY)7.54
Fwd EY2.97%
FCF(TTM)7.2
FCFY2.83%
OCF(TTM)7.82
OCFY3.08%
SpS25.87
BVpS3.77
TBVpS3.77
PEG (NY)3.21
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.68% | ||
| ROE | 164.59% | ||
| ROCE | 65.34% | ||
| ROIC | 50.01% | ||
| ROICexc | 74.45% | ||
| ROICexgc | 74.45% | ||
| OM | 31.51% | ||
| PM (TTM) | 23.97% | ||
| GM | 46.21% | ||
| FCFM | 27.83% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)46.44%
ROIC(5y)40.23%
ROICexc(3y)65.06%
ROICexc(5y)57.49%
ROICexgc(3y)65.06%
ROICexgc(5y)57.49%
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-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 82.54% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.82% | ||
| Profit Quality | 116.08% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 9.53 |
F-Score6
WACC11.86%
ROIC/WACC4.22
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)10.29%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.33%
EPS Next Y11.74%
EPS Next 2Y12.12%
EPS Next 3Y12.13%
EPS Next 5Y13.76%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%6.07%
Revenue Next Year6.12%
Revenue Next 2Y7.05%
Revenue Next 3Y6.83%
Revenue Next 5Y7.15%
EBIT growth 1Y7.8%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year17.55%
EBIT Next 3Y12.18%
EBIT Next 5Y11.32%
FCF growth 1Y9.26%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y6.98%
OCF growth 3Y4.36%
OCF growth 5Y11.25%