APPLE INC (AAPL)
US0378331005 - Common Stock
Taking everything into account, AAPL scores 6 out of 10 in our fundamental rating. AAPL was compared to 32 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AAPL was profitable.
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
With an excellent Return On Assets value of 25.68%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 96.88% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 46.44%. This is significantly above the industry average of 16.81%.
The last Return On Invested Capital (50.01%) for AAPL is above the 3 year average (46.44%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 23.97%, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a Operating Margin of 31.51%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
The Gross Margin of AAPL (46.21%) is better than 78.13% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| 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.
AAPL has less shares outstanding than it did 1 year ago.
AAPL has less shares outstanding than it did 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 8.76. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL's Altman-Z score of 8.76 is amongst the best of the industry. AAPL outperforms 96.88% of its industry peers.
AAPL has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
AAPL has a better Debt to FCF ratio (0.98) than 87.50% of its industry peers.
A Debt/Equity ratio of 1.68 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 1.68, AAPL is doing worse than 75.00% 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 | 1.68 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 8.76 |
ROIC/WACC4.55
WACC11%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying 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 87.50% 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.
With a Quick ratio value of 0.83, AAPL is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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
The Earnings Per Share has grown by an nice 10.29% over the past year.
The Earnings Per Share has been growing by 17.90% 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 2.02% in the last 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)10.29%
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
AAPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.71% yearly.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y11.64%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
EPS Next 5Y4.71%
Revenue Next Year6.08%
Revenue Next 2Y7.07%
Revenue Next 3Y6.77%
Revenue Next 5Y3.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.05, which means the current valuation is very expensive for AAPL.
AAPL's Price/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/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.50 indicates a quite expensive valuation of AAPL.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
AAPL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 30.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAPL is on the same level as its industry peers.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.93 | ||
| EV/EBITDA | 25.62 |
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.
A more expensive valuation may be justified as AAPL's earnings are expected to grow with 12.25% in the coming years.
PEG (NY)2.93
PEG (5Y)1.9
EPS Next 2Y12.07%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.44%, which is pretty low.
AAPL's Dividend Yield is a higher than the industry average which is at 2.98.
With a Dividend Yield of 0.44, AAPL pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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.
Dividend Growth(5Y)5.3%
Div Incr Years0
Div Non Decr Years0
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 slower than its dividend. This means the dividend growth is not sustainable.
DP16.25%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
APPLE INC
NASDAQ:AAPL (11/22/2024, 8:21:10 PM)
After market: 229.95 +0.08 (+0.03%)229.87
+1.35 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners69.29%
Inst Owner Change12.3%
Ins Owners0.07%
Ins Owner Change-1.93%
Market Cap3474.67B
Analysts78.89
Price Target245.59 (6.84%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)5.3%
DP16.25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.08%
PT rev (3m)2.82%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)1.54%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 30.5 | ||
| P/S | 8.89 | ||
| P/FCF | 31.93 | ||
| P/OCF | 29.38 | ||
| P/B | 61.01 | ||
| P/tB | 61.01 | ||
| EV/EBITDA | 25.62 |
EPS(TTM)6.75
EY2.94%
EPS(NY)7.54
Fwd EY3.28%
FCF(TTM)7.2
FCFY3.13%
OCF(TTM)7.82
OCFY3.4%
SpS25.87
BVpS3.77
TBVpS3.77
PEG (NY)2.93
PEG (5Y)1.9
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 | 8.76 |
F-Score6
WACC11%
ROIC/WACC4.55
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 Y11.64%
EPS Next 2Y12.07%
EPS Next 3Y12.25%
EPS Next 5Y4.71%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%6.07%
Revenue Next Year6.08%
Revenue Next 2Y7.07%
Revenue Next 3Y6.77%
Revenue Next 5Y3.05%
EBIT growth 1Y7.8%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year18.43%
EBIT Next 3Y12.04%
EBIT Next 5Y7.07%
FCF growth 1Y9.26%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y6.98%
OCF growth 3Y4.36%
OCF growth 5Y11.25%