APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL • US0378331005
264.18 USD
-8.77 (-3.21%)
At close: Feb 27, 2026
263.63 USD
-0.55 (-0.21%)
After Hours: 2/27/2026, 5:01:54 PM
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 36 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 has a decent growth rate and is not valued too expensively. With these ratings, AAPL could be worth investigating further 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.
- In the past 5 years AAPL has always been profitable.
- In the past 5 years AAPL always reported a positive cash flow from operatings.
1.2 Ratios
- AAPL has a better Return On Assets (31.05%) than 100.00% of its industry peers.
- AAPL's Return On Equity of 133.55% is amongst the best of the industry. AAPL outperforms 97.22% of its industry peers.
- AAPL's Return On Invested Capital of 54.20% is amongst the best of the industry. AAPL outperforms 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 16.56%.
- The 3 year average ROIC (50.93%) for AAPL is below the current ROIC(54.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROIC | 54.2% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
1.3 Margins
- AAPL has a better Profit Margin (27.04%) than 97.22% of its industry peers.
- AAPL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 32.38%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- AAPL's Operating Margin has improved in the last couple of years.
- AAPL's Gross Margin of 47.33% is amongst the best of the industry. AAPL outperforms 83.33% of its industry peers.
- AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% |
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.
- AAPL has a better debt/assets ratio than last year.
2.2 Solvency
- AAPL has an Altman-Z score of 10.63. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AAPL (10.63) is better than 91.67% of its industry peers.
- AAPL has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
- AAPL has a better Debt to FCF ratio (0.73) than 88.89% of its industry peers.
- AAPL has a Debt/Equity ratio of 0.89. This is a neutral value indicating AAPL is somewhat dependend on debt financing.
- AAPL has a worse Debt to Equity ratio (0.89) than 61.11% of its industry peers.
- 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 | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 10.63 |
ROIC/WACC6.35
WACC8.54%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that AAPL may have some problems paying its short term obligations.
- The Current ratio of AAPL (0.97) is worse than 72.22% of its industry peers.
- A Quick Ratio of 0.94 indicates that AAPL may have some problems paying its short term obligations.
- AAPL has a Quick ratio of 0.94. This is comparable to the rest of the industry: AAPL outperforms 52.78% of 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 | 0.97 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.49%, 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 18.04% on average per year.
- AAPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.07%.
- 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)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
3.2 Future
- The Earnings Per Share is expected to grow by 14.30% 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 7.46% on average per year.
EPS Next Y15.59%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
EPS Next 5Y14.3%
Revenue Next Year11.56%
Revenue Next 2Y9.01%
Revenue Next 3Y7.79%
Revenue Next 5Y7.46%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AAPL is valuated quite expensively with a Price/Earnings ratio of 33.40.
- Based on the Price/Earnings ratio, AAPL is valued a bit cheaper than 63.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.11. AAPL is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 27.91, which means the current valuation is very expensive for AAPL.
- AAPL's Price/Forward Earnings ratio is in line with the industry average.
- AAPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.4 | ||
| Fwd PE | 27.91 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than AAPL, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL indicates a somewhat cheap valuation: AAPL is cheaper than 69.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.5 | ||
| EV/EBITDA | 26.25 |
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)2.14
PEG (5Y)1.85
EPS Next 2Y12.56%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.40%, AAPL is not a good candidate for dividend investing.
- AAPL's Dividend Yield is a higher than the industry average which is at 0.66.
- Compared to an average S&P500 Dividend Yield of 1.80, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
- The dividend of AAPL has a limited annual growth rate of 4.95%.
- 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)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 13.15% 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.
DP13.15%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
264.18
-8.77 (-3.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners64.27%
Inst Owner Change1.34%
Ins Owners0.06%
Ins Owner Change-0.32%
Market Cap3.88T
Revenue(TTM)435.62B
Net Income(TTM)117.78B
Analysts77.41
Price Target295.02 (11.67%)
Short Float %0.81%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-09 2026-02-09 (0.26)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)2.35%
Max EPS beat(2)4.19%
EPS beat(4)3
Avg EPS beat(4)3.33%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.97%
EPS beat(12)10
Avg EPS beat(12)2.32%
EPS beat(16)12
Avg EPS beat(16)1.76%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)2.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-0.62%
Revenue beat(16)3
Avg Revenue beat(16)-0.85%
PT rev (1m)1.28%
PT rev (3m)3.39%
EPS NQ rev (1m)5.5%
EPS NQ rev (3m)5.19%
EPS NY rev (1m)2.53%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)4.33%
Revenue NQ rev (3m)4.38%
Revenue NY rev (1m)2.3%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.4 | ||
| Fwd PE | 27.91 | ||
| P/S | 8.92 | ||
| P/FCF | 31.5 | ||
| P/OCF | 28.67 | ||
| P/B | 44.04 | ||
| P/tB | 44.04 | ||
| EV/EBITDA | 26.25 |
EPS(TTM)7.91
EY2.99%
EPS(NY)9.46
Fwd EY3.58%
FCF(TTM)8.39
FCFY3.18%
OCF(TTM)9.21
OCFY3.49%
SpS29.63
BVpS6
TBVpS6
PEG (NY)2.14
PEG (5Y)1.85
Graham Number32.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.05% | ||
| ROE | 133.55% | ||
| ROCE | 65.03% | ||
| ROIC | 54.2% | ||
| ROICexc | 78.06% | ||
| ROICexgc | 78.06% | ||
| OM | 32.38% | ||
| PM (TTM) | 27.04% | ||
| GM | 47.33% | ||
| FCFM | 28.31% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)50.93%
ROIC(5y)48.1%
ROICexc(3y)72.42%
ROICexc(5y)66.83%
ROICexgc(3y)72.42%
ROICexgc(5y)66.83%
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 102.67% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.6% | ||
| Profit Quality | 104.71% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 10.63 |
F-Score8
WACC8.54%
ROIC/WACC6.35
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)13.49%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%18.33%
EPS Next Y15.59%
EPS Next 2Y12.56%
EPS Next 3Y11.64%
EPS Next 5Y14.3%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%15.65%
Revenue Next Year11.56%
Revenue Next 2Y9.01%
Revenue Next 3Y7.79%
Revenue Next 5Y7.46%
EBIT growth 1Y12.25%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year19.09%
EBIT Next 3Y11.52%
EBIT Next 5Y10.87%
FCF growth 1Y15.4%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y16.35%
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.
Can you provide the valuation status for APPLE INC?
ChartMill assigns a valuation rating of 4 / 10 to APPLE INC (AAPL). This can be considered as Fairly Valued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the expected EPS growth for APPLE INC (AAPL) stock?
The Earnings per Share (EPS) of APPLE INC (AAPL) is expected to grow by 15.59% in the next year.
How sustainable is the dividend of APPLE INC (AAPL) stock?
The dividend rating of APPLE INC (AAPL) is 5 / 10 and the dividend payout ratio is 13.15%.