APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to AAPL. AAPL was compared to 32 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. While showing a medium growth rate, AAPL is valued expensive at the moment. These ratings could make AAPL a good candidate 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.
AAPL had positive earnings in each of the past 5 years.
In the past 5 years AAPL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 29.37%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL's Return On Equity of 145.66% is amongst the best of 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.
Measured over the past 3 years, the Average Return On Invested Capital for AAPL is significantly above the industry average of 16.14%.
The 3 year average ROIC (48.83%) for AAPL is below the current ROIC(56.03%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 24.30%, AAPL belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
AAPL's Profit Margin has improved in the last couple of years.
AAPL's Operating Margin of 31.81% is amongst the best of the industry. AAPL outperforms 96.88% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
The Gross Margin of AAPL (46.63%) is better than 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
AAPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AAPL has been reduced compared to 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
AAPL has an Altman-Z score of 9.56. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.56, AAPL belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
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.
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.
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 | 9.56 |
ROIC/WACC6.29
WACC8.91%
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: 84.38% 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.
AAPL has a Quick ratio (0.78) which is comparable to the rest of the 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
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.
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.
The Revenue has been growing slightly by 4.91% in the past 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)10.26%
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
AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.49% yearly.
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
Based on the Price/Earnings ratio of 30.17, the valuation of AAPL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AAPL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.04. AAPL is around the same levels.
The Price/Forward Earnings ratio is 26.97, which means the current valuation is very expensive for AAPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL indicates a slightly more expensive valuation: AAPL is more expensive than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. AAPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.17 | ||
| Fwd PE | 26.97 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AAPL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.44 | ||
| EV/EBITDA | 23.16 |
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.
The excellent profitability rating of AAPL may justify a higher PE ratio.
PEG (NY)3.62
PEG (5Y)1.68
EPS Next 2Y8.4%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 1.98.
With a Dividend Yield of 0.50, AAPL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 15.74% 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.
DP15.74%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
213.88
+0.12 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.72%
Inst Owner Change1.58%
Ins Owners0.06%
Ins Owner Change0.35%
Market Cap3194.48B
Analysts76.79
Price Target236.03 (10.36%)
Short Float %0.75%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)0.23%
PT rev (3m)-7.85%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.17 | ||
| Fwd PE | 26.97 | ||
| P/S | 7.98 | ||
| P/FCF | 32.44 | ||
| P/OCF | 29.16 | ||
| P/B | 47.82 | ||
| P/tB | 47.82 | ||
| EV/EBITDA | 23.16 |
EPS(TTM)7.09
EY3.31%
EPS(NY)7.93
Fwd EY3.71%
FCF(TTM)6.59
FCFY3.08%
OCF(TTM)7.34
OCFY3.43%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.62
PEG (5Y)1.68
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 | 9.56 |
F-Score7
WACC8.91%
ROIC/WACC6.29
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%