APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
AAPL gets a fundamental rating of 7 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. This makes AAPL very considerable 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.
In the past 5 years AAPL always reported a positive cash flow from operatings.
1.2 Ratios
AAPL's Return On Assets of 29.37% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 145.66%, AAPL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of AAPL (56.03%) 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 16.14%.
The last Return On Invested Capital (56.03%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.37% | ||
| ROE | 145.66% | ||
| ROIC | 56.03% |
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 better Profit Margin (24.30%) than 96.88% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
Looking at the Operating Margin, with a value of 31.81%, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
AAPL's Operating Margin has improved in the last couple of years.
AAPL has a better Gross Margin (46.63%) than 81.25% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.63% |
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
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
Compared to 1 year ago, AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.57 indicates that AAPL is not in any danger for bankruptcy at the moment.
The Altman-Z score of AAPL (9.57) is better than 93.75% 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.
The Debt to FCF ratio of AAPL (1.00) is better than 90.63% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL has a worse Debt to Equity ratio (1.27) than 68.75% 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 | 1.27 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.57 |
ROIC/WACC6.3
WACC8.9%
2.3 Liquidity
AAPL has a Current Ratio of 0.82. 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 Current ratio of 0.82. This is amonst the worse of the industry: AAPL underperforms 84.38% of its industry peers.
A Quick Ratio of 0.78 indicates that AAPL may have some problems paying its short term obligations.
The Quick ratio of AAPL (0.78) is comparable to the rest of the 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 | 0.82 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.26%, which is quite good.
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 4.91% in the last year.
The Revenue has been growing by 8.49% on average over the past years. This is quite good.
EPS 1Y (TTM)10.26%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%7.84%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
3.2 Future
The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.49%
Revenue Next Year4.28%
Revenue Next 2Y4.99%
Revenue Next 3Y5.22%
Revenue Next 5Y6.22%
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 29.80 indicates a quite expensive valuation of AAPL.
The rest of the industry has a similar Price/Earnings ratio as AAPL.
The average S&P500 Price/Earnings ratio is at 27.91. AAPL is around the same levels.
A Price/Forward Earnings ratio of 26.64 indicates a quite expensive valuation of AAPL.
Based on the Price/Forward Earnings ratio, AAPL is valued a bit more expensive than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.11. AAPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL indicates a somewhat cheap valuation: AAPL is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 23.19 |
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)3.57
PEG (5Y)1.66
EPS Next 2Y8.4%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, 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 0.49, AAPL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
15.74% 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.
DP15.74%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
211.27
-2.78 (-1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.72%
Inst Owner Change1.83%
Ins Owners0.06%
Ins Owner Change0.35%
Market Cap3155.49B
Analysts76.79
Price Target236.03 (11.72%)
Short Float %0.64%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.58%
Max EPS beat(2)0.15%
EPS beat(4)3
Avg EPS beat(4)0.47%
Min EPS beat(4)-0.58%
Max EPS beat(4)1.95%
EPS beat(8)6
Avg EPS beat(8)1.25%
EPS beat(12)8
Avg EPS beat(12)0.83%
EPS beat(16)11
Avg EPS beat(16)3.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-1.31%
Revenue beat(12)0
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-0.56%
PT rev (1m)0.17%
PT rev (3m)-2.13%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 26.64 | ||
| P/S | 7.88 | ||
| P/FCF | 32.04 | ||
| P/OCF | 28.8 | ||
| P/B | 47.24 | ||
| P/tB | 47.24 | ||
| EV/EBITDA | 23.19 |
EPS(TTM)7.09
EY3.36%
EPS(NY)7.93
Fwd EY3.75%
FCF(TTM)6.59
FCFY3.12%
OCF(TTM)7.34
OCFY3.47%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.57
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.37% | ||
| ROE | 145.66% | ||
| ROCE | 68.23% | ||
| ROIC | 56.03% | ||
| ROICexc | 74.88% | ||
| ROICexgc | 74.88% | ||
| OM | 31.81% | ||
| PM (TTM) | 24.3% | ||
| GM | 46.63% | ||
| FCFM | 24.6% |
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 Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 96.24% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.89% | ||
| Profit Quality | 101.23% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 9.57 |
F-Score7
WACC8.9%
ROIC/WACC6.3
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)10.26%
EPS 3Y6.3%
EPS 5Y17.9%
EPS Q2Q%7.84%
EPS Next Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.28%
Revenue Next 2Y4.99%
Revenue Next 3Y5.22%
Revenue Next 5Y6.22%
EBIT growth 1Y7.72%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year13.64%
EBIT Next 3Y8.92%
EBIT Next 5Y9.21%
FCF growth 1Y1.02%
FCF growth 3Y5.39%
FCF growth 5Y13.06%
OCF growth 1Y-0.03%
OCF growth 3Y4.36%
OCF growth 5Y11.25%