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. Both the health and profitability get an excellent rating, making AAPL a very profitable company, without any liquidiy or solvency issues. AAPL is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make AAPL suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year AAPL was profitable.
AAPL had a positive operating cash flow in the past year.
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
The Return On Assets of AAPL (29.37%) is better than 100.00% of its industry peers.
AAPL has a Return On Equity of 145.66%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a better Return On Invested Capital (56.03%) than 100.00% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 48.83%. This is significantly above the industry average of 16.87%.
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 Profit Margin of 24.30%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
In the last couple of years the Profit Margin of AAPL has grown nicely.
AAPL has a better Operating Margin (31.81%) than 96.88% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
AAPL's Gross Margin of 46.63% is amongst the best of the industry. AAPL outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| 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
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.
AAPL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AAPL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.43 indicates that AAPL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.43, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
AAPL has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.00, AAPL belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
AAPL has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.27, AAPL is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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 | 1.27 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.43 |
ROIC/WACC6.27
WACC8.93%
2.3 Liquidity
A Current Ratio of 0.82 indicates that AAPL may have some problems paying its short term obligations.
With a Current ratio value of 0.82, AAPL is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
AAPL has a Quick 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.
With a Quick ratio value of 0.78, AAPL perfoms like the industry average, outperforming 43.75% 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 | 0.82 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.26% over the past year.
Measured over the past years, AAPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.90% on average per year.
AAPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.91%.
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)10.26%
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 13.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y8.31%
EPS Next 2Y8.52%
EPS Next 3Y8.97%
EPS Next 5Y13.04%
Revenue Next Year4.23%
Revenue Next 2Y4.98%
Revenue Next 3Y5.31%
Revenue Next 5Y6.66%
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.
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 29.18, the valuation of AAPL can be described as expensive.
AAPL's Price/Earnings ratio is in line with the industry average.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.02, which means the current valuation is very expensive for AAPL.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
AAPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 26.02 |
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 | 31.55 | ||
| EV/EBITDA | 22.75 |
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)3.51
PEG (5Y)1.63
EPS Next 2Y8.52%
EPS Next 3Y8.97%
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 2.74.
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 | 0.49% |
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 2Y8.52%
EPS Next 3Y8.97%
206.86
-1.92 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.58%
Inst Owner Change1.17%
Ins Owners0.06%
Ins Owner Change-1.16%
Market Cap3107.47B
Analysts77.86
Price Target237.55 (14.84%)
Short Float %0.74%
Short Ratio1.69
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)-7.26%
PT rev (3m)-4.44%
EPS NQ rev (1m)-3.54%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 26.02 | ||
| P/S | 7.76 | ||
| P/FCF | 31.55 | ||
| P/OCF | 28.36 | ||
| P/B | 46.52 | ||
| P/tB | 46.52 | ||
| EV/EBITDA | 22.75 |
EPS(TTM)7.09
EY3.43%
EPS(NY)7.95
Fwd EY3.84%
FCF(TTM)6.56
FCFY3.17%
OCF(TTM)7.29
OCFY3.53%
SpS26.65
BVpS4.45
TBVpS4.45
PEG (NY)3.51
PEG (5Y)1.63
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 | 9.43 |
F-Score7
WACC8.93%
ROIC/WACC6.27
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 Y8.31%
EPS Next 2Y8.52%
EPS Next 3Y8.97%
EPS Next 5Y13.04%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.23%
Revenue Next 2Y4.98%
Revenue Next 3Y5.31%
Revenue Next 5Y6.66%
EBIT growth 1Y7.72%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year15.02%
EBIT Next 3Y10.49%
EBIT Next 5Y10.33%
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%