APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
272.41 USD
-0.54 (-0.2%)
272.828 USD
+0.42 (+0.15%)
We assign a fundamental rating of 7 out of 10 to AAPL. AAPL was compared to 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. With these ratings, AAPL could be worth investigating further 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.
In the past 5 years AAPL has always been profitable.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AAPL (31.18%) is better 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.
Looking at the Return On Invested Capital, with a value of 55.64%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AAPL is significantly above the industry average of 16.16%.
The last Return On Invested Capital (55.64%) for AAPL is above the 3 year average (51.04%), which is a sign of increasing profitability.
| 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
The Profit Margin of AAPL (26.92%) is better than 94.29% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
AAPL has a Operating Margin of 31.97%. This is amongst the best in the industry. AAPL outperforms 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.
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
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
AAPL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.76 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a Altman-Z score of 10.76. This is amongst the best in the industry. AAPL outperforms 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 has a better Debt to FCF ratio (1.00) 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 Debt to Equity ratio of 1.17. This is in the lower half of the industry: AAPL underperforms 68.57% 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 | 10.76 |
ROIC/WACC6.42
WACC8.67%
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.
AAPL has a Quick ratio (0.86) which is in line with 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
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.
The Earnings Per Share has been growing by 18.04% on average over the past years. This is quite good.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 6.43% in the last 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
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.
The Revenue is expected to grow by 6.82% on average over the next years.
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 36.47, the valuation of AAPL can be described as expensive.
AAPL's Price/Earnings is on the same level as the industry average.
AAPL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 32.59, which means the current valuation is very expensive for AAPL.
AAPL's Price/Forward Earnings is on the same level as the industry average.
AAPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.47 | ||
| Fwd PE | 32.59 |
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 | 40.93 | ||
| EV/EBITDA | 28.05 |
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.
The excellent profitability rating of AAPL may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)2.02
EPS Next 2Y10.96%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.38%, which is pretty low.
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
AAPL pays out 13.77% 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.
DP13.77%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
272.41
-0.54 (-0.2%)
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 Cap4.04T
Revenue(TTM)416.16B
Net Income(TTM)112.01B
Analysts77.89
Price Target261.45 (-4.02%)
Short Float %0.75%
Short Ratio2.17
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 | 36.47 | ||
| Fwd PE | 32.59 | ||
| P/S | 9.71 | ||
| P/FCF | 40.93 | ||
| P/OCF | 36.26 | ||
| P/B | 54.83 | ||
| P/tB | 54.83 | ||
| EV/EBITDA | 28.05 |
EPS(TTM)7.47
EY2.74%
EPS(NY)8.36
Fwd EY3.07%
FCF(TTM)6.66
FCFY2.44%
OCF(TTM)7.51
OCFY2.76%
SpS28.04
BVpS4.97
TBVpS4.97
PEG (NY)3.07
PEG (5Y)2.02
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 | 10.76 |
F-Score8
WACC8.67%
ROIC/WACC6.42
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 36.47 and the Price/Book (PB) ratio is 54.83.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.