APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
262.82 USD
+3.24 (+1.25%)
263.01 USD
+0.19 (+0.07%)
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 34 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. 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.
AAPL had positive earnings in each of the past 5 years.
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 has a Return On Equity of 150.81%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 55.09%, AAPL belongs to the top 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 14.92%.
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
AAPL's Profit Margin of 24.30% is amongst the best of the industry. AAPL outperforms 97.06% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 31.87%, AAPL belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a Gross Margin of 46.68%. This is amongst the best in the industry. AAPL outperforms 82.35% of its industry peers.
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
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.
The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
The debt/assets ratio for AAPL has been reduced compared to a year ago.
2.2 Solvency
AAPL has an Altman-Z score of 11.20. 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 11.20, AAPL belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.06, AAPL belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that AAPL has dependencies on debt financing.
The Debt to Equity ratio of AAPL (1.40) is worse than 67.65% 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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 11.2 |
ROIC/WACC6.45
WACC8.54%
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.
AAPL's Current ratio of 0.87 is on the low side compared to the rest of the industry. AAPL is outperformed by 79.41% of its industry peers.
A Quick Ratio of 0.83 indicates that AAPL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, AAPL is in line with its industry, outperforming 47.06% 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 | 0.87 | ||
| 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.
AAPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
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
The Earnings Per Share is expected to grow by 10.53% 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 6.05% on average per year.
EPS Next Y11.37%
EPS Next 2Y9.99%
EPS Next 3Y10.1%
EPS Next 5Y10.53%
Revenue Next Year6.16%
Revenue Next 2Y6.05%
Revenue Next 3Y6.14%
Revenue Next 5Y6.05%
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
With a Price/Earnings ratio of 36.20, 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 (26.89), we can say AAPL is valued slightly more expensively.
With a Price/Forward Earnings ratio of 32.18, AAPL can be considered very expensive at the moment.
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 (22.99), we can say AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.2 | ||
| Fwd PE | 32.18 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.55 | ||
| EV/EBITDA | 27.65 |
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)3.18
PEG (5Y)2.02
EPS Next 2Y9.99%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 1.86, AAPL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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.
AAPL has decreased its dividend recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AAPL pays out 15.47% 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.
DP15.47%
EPS Next 2Y9.99%
EPS Next 3Y10.1%
262.82
+3.24 (+1.25%)
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-2.27%
Ins Owners0.06%
Ins Owner Change-0.73%
Market Cap3900.35B
Revenue(TTM)408.63B
Net Income(TTM)99.28B
Analysts77.86
Price Target250.05 (-4.86%)
Short Float %0.76%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)1.21%
PT rev (3m)5.94%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)5.98%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)3.84%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.2 | ||
| Fwd PE | 32.18 | ||
| P/S | 9.55 | ||
| P/FCF | 40.55 | ||
| P/OCF | 35.93 | ||
| P/B | 59.25 | ||
| P/tB | 59.25 | ||
| EV/EBITDA | 27.65 |
EPS(TTM)7.26
EY2.76%
EPS(NY)8.17
Fwd EY3.11%
FCF(TTM)6.48
FCFY2.47%
OCF(TTM)7.32
OCFY2.78%
SpS27.53
BVpS4.44
TBVpS4.44
PEG (NY)3.18
PEG (5Y)2.02
Graham Number26.92
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%
ROICexgc growth 3Y12.71%
ROICexgc 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 | 11.2 |
F-Score7
WACC8.54%
ROIC/WACC6.45
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 Y11.37%
EPS Next 2Y9.99%
EPS Next 3Y10.1%
EPS Next 5Y10.53%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
Revenue Next Year6.16%
Revenue Next 2Y6.05%
Revenue Next 3Y6.14%
Revenue Next 5Y6.05%
EBIT growth 1Y7.98%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year17.05%
EBIT Next 3Y10.02%
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%
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 36.2 and the Price/Book (PB) ratio is 59.25.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.