APPLE INC (AAPL)
US0378331005 - Common Stock
AAPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, AAPL is valued expensive at the moment.
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.
Each year in the past 5 years AAPL has been profitable.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAPL has a better Return On Assets (29.75%) than 96.88% of its industry peers.
AAPL has a better Return On Equity (135.31%) than 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 46.37%, AAPL belongs to the top of the industry, outperforming 96.88% 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 14.42%.
The last Return On Invested Capital (46.37%) for AAPL is above the 3 year average (44.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROIC | 46.37% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
1.3 Margins
AAPL has a better Profit Margin (26.31%) than 93.75% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
AAPL has a Operating Margin of 30.98%. 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.
Looking at the Gross Margin, with a value of 45.59%, AAPL is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% |
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
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.
AAPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.81 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a Altman-Z score of 9.81. This is amongst the best in the industry. AAPL outperforms 90.63% of its industry peers.
AAPL has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
AAPL's Debt to FCF ratio of 1.03 is amongst the best of the industry. AAPL outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 1.26 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 1.26, AAPL is doing worse than 71.88% 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 | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 9.81 |
ROIC/WACC4.73
WACC9.8%
2.3 Liquidity
A Current Ratio of 1.04 indicates that AAPL should not have too much problems paying its short term obligations.
AAPL has a Current ratio of 1.04. This is amonst the worse of the industry: AAPL underperforms 81.25% of its industry peers.
AAPL has a Quick Ratio of 1.04. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AAPL (0.99) is worse than 68.75% 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 | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.17% over the past year.
The Earnings Per Share has been growing by 15.58% on average over the past years. This is quite good.
The Revenue has decreased by -0.90% in the past year.
Measured over the past years, AAPL shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS Q2Q%0.66%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Sales Q2Q%-4.31%
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 9.51% yearly.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 4.40% on average per year.
EPS Next Y9.82%
EPS Next 2Y9.75%
EPS Next 3Y9.82%
EPS Next 5Y9.51%
Revenue Next Year1%
Revenue Next 2Y3.68%
Revenue Next 3Y4.39%
Revenue Next 5Y4.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
AAPL is valuated quite expensively with a Price/Earnings ratio of 33.05.
Compared to the rest of the industry, the Price/Earnings ratio of AAPL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (28.39), we can say AAPL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 28.83, the valuation of AAPL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (19.91), we can say AAPL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.83 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.97 | ||
| EV/EBITDA | 25.35 |
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)3.37
PEG (5Y)2.12
EPS Next 2Y9.75%
EPS Next 3Y9.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.67, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.51, AAPL pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of AAPL is nicely growing with an annual growth rate of 6.58%!
AAPL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AAPL pays out 15.08% 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.
DP15.08%
EPS Next 2Y9.75%
EPS Next 3Y9.82%
APPLE INC
NASDAQ:AAPL (6/14/2024, 7:00:00 PM)
After market: 212.44 -0.05 (-0.02%)212.49
-1.75 (-0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners59.74%
Inst Owner Change-4.12%
Ins Owners0.07%
Ins Owner Change-1.57%
Market Cap3258.34B
Analysts78.85
Price Target208.67 (-1.8%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Dividend Growth(5Y)6.58%
DP15.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.92%
Min EPS beat(2)-0.02%
Max EPS beat(2)1.87%
EPS beat(4)3
Avg EPS beat(4)2.03%
Min EPS beat(4)-0.02%
Max EPS beat(4)3.42%
EPS beat(8)5
Avg EPS beat(8)1.01%
EPS beat(12)8
Avg EPS beat(12)3.86%
EPS beat(16)12
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)3
Avg Revenue beat(12)-0.31%
Revenue beat(16)6
Avg Revenue beat(16)1.7%
PT rev (1m)1.1%
PT rev (3m)1.57%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 28.83 | ||
| P/S | 8.54 | ||
| P/FCF | 31.97 | ||
| P/OCF | 29.47 | ||
| P/B | 43.92 | ||
| P/tB | 43.92 | ||
| EV/EBITDA | 25.35 |
EPS(TTM)6.43
EY3.03%
EPS(NY)7.37
Fwd EY3.47%
FCF(TTM)6.65
FCFY3.13%
OCF(TTM)7.21
OCFY3.39%
SpS24.89
BVpS4.84
TBVpS4.84
PEG (NY)3.37
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.75% | ||
| ROE | 135.31% | ||
| ROCE | 55.36% | ||
| ROIC | 46.37% | ||
| ROICexc | 67.34% | ||
| ROICexgc | 67.34% | ||
| OM | 30.98% | ||
| PM (TTM) | 26.31% | ||
| GM | 45.59% | ||
| FCFM | 26.71% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
ROICexc(3y)60.39%
ROICexc(5y)52.51%
ROICexgc(3y)60.39%
ROICexgc(5y)52.51%
ROCE(3y)54.51%
ROCE(5y)44.27%
ROICexcg growth 3Y14.64%
ROICexcg growth 5Y15.74%
ROICexc growth 3Y14.64%
ROICexc growth 5Y15.74%
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
F-Score8
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 101.52% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 9.81 |
F-Score8
WACC9.8%
ROIC/WACC4.73
Cap/Depr(3y)96.6%
Cap/Depr(5y)87.91%
Cap/Sales(3y)2.87%
Cap/Sales(5y)3.06%
Profit Quality(3y)104.17%
Profit Quality(5y)109.38%
High Growth Momentum
Growth
EPS 1Y (TTM)9.17%
EPS 3Y23.36%
EPS 5Y15.58%
EPS Q2Q%0.66%
EPS Next Y9.82%
EPS Next 2Y9.75%
EPS Next 3Y9.82%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Sales Q2Q%-4.31%
Revenue Next Year1%
Revenue Next 2Y3.68%
Revenue Next 3Y4.39%
Revenue Next 5Y4.4%
EBIT growth 1Y5.29%
EBIT growth 3Y19.91%
EBIT growth 5Y10.02%
EBIT Next Year16.49%
EBIT Next 3Y10.36%
EBIT Next 5Y8.79%
FCF growth 1Y-3.66%
FCF growth 3Y10.72%
FCF growth 5Y9.2%
OCF growth 1Y-5.04%
OCF growth 3Y11.07%
OCF growth 5Y7.38%