APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
269.71 USD
+2.27 (+0.85%)
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 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. While showing a medium growth rate, AAPL is valued expensive at the moment. This makes AAPL very considerable 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.
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
AAPL has a better Return On Assets (31.18%) than 97.14% of its industry peers.
AAPL's Return On Equity of 151.91% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a better Return On Invested Capital (55.64%) than 100.00% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 51.04%. This is significantly above the industry average of 16.16%.
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 94.29% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a better Operating Margin (31.97%) than 97.14% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
AAPL has a better Gross Margin (46.91%) than 82.86% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, AAPL has less shares outstanding
The debt/assets ratio for AAPL has been reduced compared to a year ago.
2.2 Solvency
AAPL has an Altman-Z score of 10.61. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL has a better Altman-Z score (10.61) than 97.14% 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.
AAPL's Debt to FCF ratio of 1.00 is amongst the best of the industry. AAPL outperforms 88.57% of its industry peers.
A Debt/Equity ratio of 1.17 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 1.17, AAPL is doing worse than 68.57% 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 | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 10.61 |
ROIC/WACC6.43
WACC8.65%
2.3 Liquidity
A Current Ratio of 0.89 indicates that AAPL may have some problems paying its short term obligations.
The Current ratio of AAPL (0.89) is worse than 77.14% of its industry peers.
A Quick Ratio of 0.86 indicates that AAPL may have some problems paying its short term obligations.
AAPL's Quick ratio of 0.86 is in line compared to the rest of the industry. AAPL outperforms 51.43% 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 | 0.89 | ||
| 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.
Measured over the past years, AAPL shows a quite strong growth in Revenue. The Revenue has been growing by 8.68% on average per year.
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
The Earnings Per Share is expected to grow by 13.46% 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 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
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
Based on the Price/Earnings ratio of 36.11, the valuation of AAPL can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AAPL.
AAPL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.46.
The Price/Forward Earnings ratio is 32.27, which means the current valuation is very expensive for AAPL.
AAPL's Price/Forward Earnings ratio is in line with the industry average.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 32.27 |
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 | 40.53 | ||
| EV/EBITDA | 27.54 |
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)3.04
PEG (5Y)2
EPS Next 2Y10.96%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.95, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.38, AAPL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.77%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
NASDAQ:AAPL (11/19/2025, 2:58:33 PM)
269.71
+2.27 (+0.85%)
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-1.94%
Ins Owners0.06%
Ins Owner Change-0.78%
Market Cap4.00T
Revenue(TTM)416.16B
Net Income(TTM)112.01B
Analysts77.89
Price Target261.45 (-3.06%)
Short Float %0.79%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)6.78%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)2.39%
EPS NY rev (3m)5.38%
Revenue NQ rev (1m)5.2%
Revenue NQ rev (3m)5.81%
Revenue NY rev (1m)2.42%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 32.27 | ||
| P/S | 9.62 | ||
| P/FCF | 40.53 | ||
| P/OCF | 35.9 | ||
| P/B | 54.29 | ||
| P/tB | 54.29 | ||
| EV/EBITDA | 27.54 |
EPS(TTM)7.47
EY2.77%
EPS(NY)8.36
Fwd EY3.1%
FCF(TTM)6.66
FCFY2.47%
OCF(TTM)7.51
OCFY2.79%
SpS28.04
BVpS4.97
TBVpS4.97
PEG (NY)3.04
PEG (5Y)2
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 | 10.61 |
F-Score8
WACC8.65%
ROIC/WACC6.43
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 36.11 and the Price/Book (PB) ratio is 54.29.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.