APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
262.77 USD
+0.53 (+0.2%)
262.65 USD
-0.12 (-0.05%)
Overall AAPL gets a fundamental rating of 7 out of 10. We evaluated AAPL against 34 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make AAPL a good candidate for quality investing.
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.
AAPL had positive earnings in each of the past 5 years.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAPL has a Return On Assets of 29.95%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a better Return On Equity (150.81%) than 100.00% of its industry peers.
AAPL has a better Return On Invested Capital (55.09%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AAPL is significantly above the industry average of 14.92%.
The last Return On Invested Capital (55.09%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.95% | ||
| ROE | 150.81% | ||
| ROIC | 55.09% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)48.83%
ROIC(5y)42.3%
1.3 Margins
The Profit Margin of AAPL (24.30%) is better than 97.06% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
With an excellent Operating Margin value of 31.87%, AAPL belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
AAPL's Operating Margin has improved in the last couple of years.
AAPL's Gross Margin of 46.68% is amongst the best of the industry. AAPL outperforms 82.35% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.87% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.68% |
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 11.18. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.18, AAPL belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
The Debt to FCF ratio of AAPL is 1.06, which is an excellent value as it means it would take AAPL, only 1.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AAPL (1.06) is better than 85.29% of its industry peers.
A Debt/Equity ratio of 1.40 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 1.40, AAPL is doing worse than 67.65% 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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 11.18 |
ROIC/WACC6.47
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a worse Current ratio (0.87) than 79.41% 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 Quick ratio of 0.83. This is comparable to the rest of the industry: AAPL outperforms 47.06% 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 10.50%, which is quite good.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 5.97% 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)10.5%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.14%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
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 10.53% on average per year.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y11.38%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y10.53%
Revenue Next Year6.12%
Revenue Next 2Y5.88%
Revenue Next 3Y5.99%
Revenue Next 5Y6.05%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.19 indicates a quite expensive valuation of AAPL.
AAPL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (27.77), we can say AAPL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.19, the valuation of AAPL can be described as expensive.
AAPL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.23. AAPL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 32.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.54 | ||
| EV/EBITDA | 27.59 |
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)3.18
PEG (5Y)2.02
EPS Next 2Y9.97%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 1.85, AAPL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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.
The dividend of AAPL decreased recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AAPL pays out 15.47% 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.
DP15.47%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
262.77
+0.53 (+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-2.18%
Ins Owners0.06%
Ins Owner Change-0.77%
Market Cap3899.61B
Analysts77.86
Price Target250.05 (-4.84%)
Short Float %0.81%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.38%
Min EPS beat(2)-0.58%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)1.81%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.74%
EPS beat(12)8
Avg EPS beat(12)1.34%
EPS beat(16)11
Avg EPS beat(16)1.81%
Revenue beat(2)1
Avg Revenue beat(2)0.85%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)2.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
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)-1.1%
Revenue beat(16)3
Avg Revenue beat(16)-0.93%
PT rev (1m)1.21%
PT rev (3m)6.11%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)5.83%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.19 | ||
| Fwd PE | 32.19 | ||
| P/S | 9.54 | ||
| P/FCF | 40.54 | ||
| P/OCF | 35.92 | ||
| P/B | 59.24 | ||
| P/tB | 59.24 | ||
| EV/EBITDA | 27.59 |
EPS(TTM)7.26
EY2.76%
EPS(NY)8.16
Fwd EY3.11%
FCF(TTM)6.48
FCFY2.47%
OCF(TTM)7.32
OCFY2.78%
SpS27.53
BVpS4.44
TBVpS4.44
PEG (NY)3.18
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.95% | ||
| ROE | 150.81% | ||
| ROCE | 68.4% | ||
| ROIC | 55.09% | ||
| ROICexc | 76.14% | ||
| ROICexgc | 76.14% | ||
| OM | 31.87% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.68% | ||
| FCFM | 23.54% |
ROA(3y)27.16%
ROA(5y)25.24%
ROE(3y)172.54%
ROE(5y)151.11%
ROIC(3y)48.83%
ROIC(5y)42.3%
ROICexc(3y)68.4%
ROICexc(5y)60.45%
ROICexgc(3y)68.4%
ROICexgc(5y)60.45%
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-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 107.83% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.62% | ||
| Profit Quality | 96.88% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 11.18 |
F-Score7
WACC8.52%
ROIC/WACC6.47
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)10.5%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%12.14%
EPS Next Y11.38%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y10.53%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
Revenue Next Year6.12%
Revenue Next 2Y5.88%
Revenue Next 3Y5.99%
Revenue Next 5Y6.05%
EBIT growth 1Y7.98%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year17.05%
EBIT Next 3Y10.02%
EBIT Next 5Y9.62%
FCF growth 1Y-4.76%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y-3.99%
OCF growth 3Y4.36%
OCF growth 5Y11.25%