APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
253.43 USD
-4.63 (-1.79%)
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 33 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 quite expensive at the moment. It does show a decent growth rate. This makes AAPL very considerable for quality investing!
1. Profitability
1.1 Basic Checks
AAPL had positive earnings in the past year.
AAPL had a positive operating cash flow in the past year.
Each year in the past 5 years AAPL has been profitable.
In the past 5 years AAPL always reported a positive cash flow from operatings.
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's Return On Equity of 150.81% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
The Return On Invested Capital of AAPL (55.09%) is better 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 3 year average ROIC (48.83%) for AAPL is below the current ROIC(55.09%), indicating increased profibility in the last year.
| 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
AAPL has a Profit Margin of 24.30%. This is amongst the best in the industry. AAPL outperforms 96.97% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a better Operating Margin (31.87%) than 96.97% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a Gross Margin of 46.68%. This is amongst the best in the industry. AAPL outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AAPL is creating value.
The number of shares outstanding for AAPL has been reduced compared to 1 year ago.
The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 11.04. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.04, AAPL belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
AAPL has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
The Debt to FCF ratio of AAPL (1.06) is better than 84.85% of its industry peers.
AAPL has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
AAPL's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. AAPL is outperformed by 66.67% 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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 11.04 |
ROIC/WACC6.37
WACC8.65%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
The Current ratio of AAPL (0.87) is worse than 78.79% 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 perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
AAPL does not score too well on the current and quick ratio evaluation. However, as it has 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 10.50% 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 17.90% yearly.
The Revenue has been growing slightly by 5.97% in the past year.
Measured over the past years, AAPL shows a quite strong growth in Revenue. The Revenue has been growing by 8.49% on average per year.
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.
The Revenue is expected to grow by 6.05% on average over the next years.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.91, the valuation of AAPL can be described as expensive.
AAPL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (27.91), we can say AAPL is valued slightly more expensively.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 31.05.
AAPL's Price/Forward Earnings ratio is in line with the industry average.
AAPL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 31.05 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.1 | ||
| EV/EBITDA | 27.15 |
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)3.07
PEG (5Y)1.95
EPS Next 2Y9.97%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.40%, which is pretty low.
AAPL's Dividend Yield is a higher than the industry average which is at 2.16.
Compared to an average S&P500 Dividend Yield of 2.44, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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.
AAPL has decreased its dividend recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
15.47% 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.
DP15.47%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
NASDAQ:AAPL (10/9/2025, 2:44:10 PM)
253.43
-4.63 (-1.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners63.51%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner Change-0.84%
Market Cap3761.00B
Analysts77.86
Price Target250.05 (-1.33%)
Short Float %0.81%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)3.7%
PT rev (3m)6.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)5.75%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)3.49%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.91 | ||
| Fwd PE | 31.05 | ||
| P/S | 9.2 | ||
| P/FCF | 39.1 | ||
| P/OCF | 34.64 | ||
| P/B | 57.13 | ||
| P/tB | 57.13 | ||
| EV/EBITDA | 27.15 |
EPS(TTM)7.26
EY2.86%
EPS(NY)8.16
Fwd EY3.22%
FCF(TTM)6.48
FCFY2.56%
OCF(TTM)7.32
OCFY2.89%
SpS27.53
BVpS4.44
TBVpS4.44
PEG (NY)3.07
PEG (5Y)1.95
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 | 11.04 |
F-Score7
WACC8.65%
ROIC/WACC6.37
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%