APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 32 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 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.
In the past year AAPL had a positive cash flow from operations.
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
AAPL has a Return On Assets of 25.68%. This is amongst the best in the industry. AAPL outperforms 96.77% of its industry peers.
AAPL has a better Return On Equity (164.59%) than 100.00% of its industry peers.
AAPL's Return On Invested Capital of 50.01% 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 16.70%.
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's Profit Margin of 23.97% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
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's Gross Margin of 46.21% is amongst the best of the industry. AAPL outperforms 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 8.62. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AAPL (8.62) is better than 90.32% of its industry peers.
The Debt to FCF ratio of AAPL is 0.98, which is an excellent value as it means it would take AAPL, only 0.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.98, AAPL belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
A Debt/Equity ratio of 1.68 is on the high side and indicates that AAPL has dependencies on debt financing.
The Debt to Equity ratio of AAPL (1.68) is worse than 74.19% 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 | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 8.62 |
ROIC/WACC4.29
WACC11.66%
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 has a Current ratio of 0.87. This is amonst the worse of the industry: AAPL underperforms 83.87% of its industry peers.
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 has a worse Quick ratio (0.83) than 64.52% 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 | 0.87 | ||
| 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.
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 2.02% in the past year.
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
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
Based on estimates for the next years, AAPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.76% on average per year.
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 Year6.06%
Revenue Next 2Y7.01%
Revenue Next 3Y6.89%
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 33.00, AAPL can be considered very expensive at the moment.
AAPL's Price/Earnings is on the same level as the industry average.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.54, the valuation of AAPL can be described as expensive.
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 (24.47), we can say AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 29.54 |
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 indicates a somewhat cheap valuation: AAPL is cheaper than 64.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.95 | ||
| EV/EBITDA | 25.08 |
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)2.81
PEG (5Y)1.84
EPS Next 2Y12.12%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 2.76, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, AAPL pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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.
AAPL has decreased its dividend recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
16.25% 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.
DP16.25%
EPS Next 2Y12.12%
EPS Next 3Y12.13%
APPLE INC
NASDAQ:AAPL (1/24/2025, 8:22:52 PM)
After market: 222.17 -0.61 (-0.27%)222.78
-0.88 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners60.98%
Inst Owner Change-1.02%
Ins Owners0.06%
Ins Owner Change-4.31%
Market Cap3367.50B
Analysts78.91
Price Target248.12 (11.37%)
Short Float %1.06%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP16.25%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.74%
PT rev (3m)1.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 29.54 | ||
| P/S | 8.61 | ||
| P/FCF | 30.95 | ||
| P/OCF | 28.48 | ||
| P/B | 59.13 | ||
| P/tB | 59.13 | ||
| EV/EBITDA | 25.08 |
EPS(TTM)6.75
EY3.03%
EPS(NY)7.54
Fwd EY3.39%
FCF(TTM)7.2
FCFY3.23%
OCF(TTM)7.82
OCFY3.51%
SpS25.87
BVpS3.77
TBVpS3.77
PEG (NY)2.81
PEG (5Y)1.84
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 | 8.62 |
F-Score6
WACC11.66%
ROIC/WACC4.29
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 Year6.06%
Revenue Next 2Y7.01%
Revenue Next 3Y6.89%
Revenue Next 5Y7.15%
EBIT growth 1Y7.8%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year17.98%
EBIT Next 3Y12.23%
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%