APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 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. 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
In the past year AAPL was profitable.
In the past year AAPL had a positive cash flow from operations.
AAPL had positive earnings in each of the past 5 years.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AAPL (29.95%) is better than 100.00% of its industry peers.
The Return On Equity of AAPL (150.81%) is better than 100.00% of its industry peers.
The Return On Invested Capital of AAPL (55.09%) is better 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 15.13%.
The last Return On Invested Capital (55.09%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| 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 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.
AAPL has a Operating Margin of 31.87%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
In the last couple of years the Operating Margin of AAPL has grown nicely.
The Gross Margin of AAPL (46.68%) is better than 81.25% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.87% | ||
| 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.
AAPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAPL has less shares outstanding
The debt/assets ratio for AAPL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.18 indicates that AAPL is not in any danger for bankruptcy at the moment.
AAPL has a Altman-Z score of 10.18. This is amongst the best in the industry. AAPL outperforms 93.75% of its industry peers.
The Debt to FCF ratio of AAPL is 1.06, which is an excellent value as it means it would take AAPL, only 1.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AAPL (1.06) is better than 84.38% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: AAPL underperforms 65.63% of its industry peers.
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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 10.18 |
ROIC/WACC6.25
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
With a Current ratio value of 0.87, 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 0.87. This is a bad value and indicates that AAPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.83, AAPL is in line with its industry, 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 | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.50%, which is quite good.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.97% 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)10.5%
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
The Earnings Per Share is expected to grow by 12.86% 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 6.43% yearly.
EPS Next Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.86%
Revenue Next Year4.31%
Revenue Next 2Y4.99%
Revenue Next 3Y5.23%
Revenue Next 5Y6.43%
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
The Price/Earnings ratio is 31.80, which means the current valuation is very expensive for AAPL.
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 (26.82), we can say AAPL is valued inline with the index average.
With a Price/Forward Earnings ratio of 29.11, AAPL can be considered very expensive at the moment.
62.50% of the companies in the same industry are cheaper than AAPL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, AAPL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 29.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.85 | ||
| EV/EBITDA | 24.46 |
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.
AAPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)1.78
EPS Next 2Y8.4%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, AAPL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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.
AAPL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.47%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
230.89
-0.7 (-0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.87%
Inst Owner Change0.61%
Ins Owners0.06%
Ins Owner Change-0.09%
Market Cap3448.53B
Analysts77.5
Price Target239.17 (3.59%)
Short Float %0.64%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)1.5%
PT rev (3m)0.68%
EPS NQ rev (1m)5.96%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)3.51%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 29.11 | ||
| P/S | 8.44 | ||
| P/FCF | 35.85 | ||
| P/OCF | 31.76 | ||
| P/B | 52.39 | ||
| P/tB | 52.39 | ||
| EV/EBITDA | 24.46 |
EPS(TTM)7.26
EY3.14%
EPS(NY)7.93
Fwd EY3.44%
FCF(TTM)6.44
FCFY2.79%
OCF(TTM)7.27
OCFY3.15%
SpS27.36
BVpS4.41
TBVpS4.41
PEG (NY)3.81
PEG (5Y)1.78
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 | 10.18 |
F-Score7
WACC8.82%
ROIC/WACC6.25
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 Y8.34%
EPS Next 2Y8.4%
EPS Next 3Y8.73%
EPS Next 5Y12.86%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
Revenue Next Year4.31%
Revenue Next 2Y4.99%
Revenue Next 3Y5.23%
Revenue Next 5Y6.43%
EBIT growth 1Y7.98%
EBIT growth 3Y4.19%
EBIT growth 5Y14.02%
EBIT Next Year16.74%
EBIT Next 3Y9.62%
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%