278.78 USD
-1.92 (-0.68%)
279 USD
+0.22 (+0.08%)
We assign a fundamental rating of 7 out of 10 to AAPL. AAPL was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. AAPL gets an excellent profitability rating and is at the same time showing great financial health properties. AAPL is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years AAPL has been profitable.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 31.18%, AAPL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
AAPL's Return On Equity of 151.91% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
AAPL's Return On Invested Capital of 55.64% is amongst the best of the industry. AAPL outperforms 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 15.32%.
The last Return On Invested Capital (55.64%) for AAPL is above the 3 year average (51.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROIC | 55.64% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
1.3 Margins
Looking at the Profit Margin, with a value of 26.92%, AAPL belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
AAPL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 31.97%, AAPL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of AAPL has grown nicely.
The Gross Margin of AAPL (46.91%) is better than 82.86% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% |
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
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 10.98 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a Altman-Z score of 10.98. This is amongst the best in the industry. AAPL outperforms 97.14% of its industry peers.
The Debt to FCF ratio of AAPL is 1.00, which is an excellent value as it means it would take AAPL, only 1.00 years of fcf income to pay off all of its debts.
AAPL's Debt to FCF ratio of 1.00 is amongst the best of the industry. AAPL outperforms 88.57% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that AAPL has dependencies on debt financing.
The Debt to Equity ratio of AAPL (1.17) is worse than 68.57% 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 | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 10.98 |
ROIC/WACC6.44
WACC8.64%
2.3 Liquidity
AAPL has a Current Ratio of 0.89. 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 Current ratio of AAPL (0.89) is worse than 77.14% of its industry peers.
A Quick Ratio of 0.86 indicates that AAPL may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, AAPL perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
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 | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.67% over the past year.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.04% yearly.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 6.43% in the last year.
AAPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.68% yearly.
EPS 1Y (TTM)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
3.2 Future
The Earnings Per Share is expected to grow by 13.46% on average over the next years. This is quite good.
AAPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.96%
EPS Next 5Y13.46%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.15%
Revenue Next 5Y6.82%
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.
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
AAPL is valuated quite expensively with a Price/Earnings ratio of 37.32.
AAPL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. AAPL is valued slightly more expensive when compared to this.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 33.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 33.35 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.71 | ||
| EV/EBITDA | 28.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AAPL may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)2.07
EPS Next 2Y10.96%
EPS Next 3Y10.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 1.92.
With a Dividend Yield of 0.37, AAPL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of AAPL has a limited annual growth rate of 4.95%.
AAPL has paid a dividend for at least 10 years, which is a reliable track record.
AAPL has decreased its dividend recently.
Dividend Growth(5Y)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.77% of the earnings are spent on dividend by AAPL. This is a low number and sustainable payout ratio.
The dividend of AAPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.77%
EPS Next 2Y10.96%
EPS Next 3Y10.96%
278.78
-1.92 (-0.68%)
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-1.91%
Ins Owners0.06%
Ins Owner Change-0.72%
Market Cap4.12T
Revenue(TTM)416.16B
Net Income(TTM)112.01B
Analysts77.89
Price Target285.36 (2.36%)
Short Float %0.79%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.84%
Min EPS beat(2)2.35%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.68%
EPS beat(12)9
Avg EPS beat(12)1.57%
EPS beat(16)12
Avg EPS beat(16)2.06%
Revenue beat(2)1
Avg Revenue beat(2)0.6%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)2.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
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)-1.2%
Revenue beat(16)3
Avg Revenue beat(16)-0.81%
PT rev (1m)14.12%
PT rev (3m)18.35%
EPS NQ rev (1m)5.53%
EPS NQ rev (3m)7.29%
EPS NY rev (1m)2.35%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)4.43%
Revenue NQ rev (3m)6.06%
Revenue NY rev (1m)2.08%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 33.35 | ||
| P/S | 9.9 | ||
| P/FCF | 41.71 | ||
| P/OCF | 36.95 | ||
| P/B | 55.87 | ||
| P/tB | 55.87 | ||
| EV/EBITDA | 28.77 |
EPS(TTM)7.47
EY2.68%
EPS(NY)8.36
Fwd EY3%
FCF(TTM)6.68
FCFY2.4%
OCF(TTM)7.54
OCFY2.71%
SpS28.16
BVpS4.99
TBVpS4.99
PEG (NY)3.14
PEG (5Y)2.07
Graham Number28.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROCE | 68.72% | ||
| ROIC | 55.64% | ||
| ROICexc | 76.36% | ||
| ROICexgc | 76.36% | ||
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% | ||
| FCFM | 23.73% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
ROICexc(3y)72.58%
ROICexc(5y)66.97%
ROICexgc(3y)72.58%
ROICexgc(5y)66.97%
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 108.69% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.02% | ||
| Profit Quality | 88.18% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 10.98 |
F-Score8
WACC8.64%
ROIC/WACC6.44
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)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.96%
EPS Next 5Y13.46%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.15%
Revenue Next 5Y6.82%
EBIT growth 1Y7.98%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year15.46%
EBIT Next 3Y11.35%
EBIT Next 5Y10.63%
FCF growth 1Y-9.23%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y-5.73%
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.
What is the valuation status of APPLE INC (AAPL) stock?
ChartMill assigns a valuation rating of 2 / 10 to APPLE INC (AAPL). This can be considered as Overvalued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the valuation of APPLE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLE INC (AAPL) is 37.32 and the Price/Book (PB) ratio is 55.87.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.