APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
267.46 USD
-4.95 (-1.82%)
267.69 USD
+0.23 (+0.09%)
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 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 could make AAPL a good candidate 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.
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
Looking at the Return On Assets, with a value of 31.18%, AAPL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 151.91%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of AAPL (55.64%) is better 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 16.16%.
The last Return On Invested Capital (55.64%) for AAPL is above the 3 year average (51.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROIC | 55.64% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
1.3 Margins
With an excellent Profit Margin value of 26.92%, AAPL belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
Looking at the Operating Margin, with a value of 31.97%, AAPL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of AAPL has grown nicely.
AAPL has a better Gross Margin (46.91%) than 82.86% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% |
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
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.
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
AAPL has an Altman-Z score of 10.76. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.76, AAPL belongs to the top of the industry, outperforming 97.14% 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 88.57% of the companies in the same industry.
AAPL has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
AAPL has a worse Debt to Equity ratio (1.17) than 68.57% 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 | 1.17 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 10.76 |
ROIC/WACC6.42
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.89 indicates that AAPL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, AAPL is doing worse than 77.14% of the companies in the same industry.
AAPL has a Quick Ratio of 0.89. 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 0.86, AAPL is in line with its industry, outperforming 51.43% 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 | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
AAPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.67%, which is quite good.
AAPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.04% yearly.
The Revenue has been growing slightly by 6.43% in the past year.
The Revenue has been growing by 8.68% on average over the past years. This is quite good.
EPS 1Y (TTM)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
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 13.46% yearly.
The Revenue is expected to grow by 6.82% on average over the next years.
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
EPS Next 5Y13.46%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.05%
Revenue Next 5Y6.82%
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.
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 35.80, which means the current valuation is very expensive for AAPL.
AAPL's Price/Earnings is on the same level as the industry average.
AAPL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.56.
The Price/Forward Earnings ratio is 32.00, which means the current valuation is very expensive for AAPL.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (34.62), we can say AAPL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAPL is on the same level as its industry peers.
AAPL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.19 | ||
| EV/EBITDA | 28.05 |
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)3.01
PEG (5Y)1.98
EPS Next 2Y10.96%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
AAPL has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 1.95, AAPL pays a bit more dividend than its industry peers.
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 | 0.38% |
5.2 History
The dividend of AAPL has a limited annual growth rate of 4.95%.
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)4.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.77% 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.
DP13.77%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
267.46
-4.95 (-1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners63.51%
Inst Owner Change-1.94%
Ins Owners0.06%
Ins Owner Change-0.78%
Market Cap3.97T
Revenue(TTM)416.16B
Net Income(TTM)112.01B
Analysts77.89
Price Target261.45 (-2.25%)
Short Float %0.75%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend1.03
Dividend Growth(5Y)4.95%
DP13.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.84%
Min EPS beat(2)2.35%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-0.58%
Max EPS beat(4)7.34%
EPS beat(8)6
Avg EPS beat(8)1.68%
EPS beat(12)9
Avg EPS beat(12)1.57%
EPS beat(16)12
Avg EPS beat(16)2.06%
Revenue beat(2)1
Avg Revenue beat(2)0.6%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)2.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
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)-1.2%
Revenue beat(16)3
Avg Revenue beat(16)-0.81%
PT rev (1m)4.56%
PT rev (3m)9.31%
EPS NQ rev (1m)6.78%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)2.39%
EPS NY rev (3m)5.38%
Revenue NQ rev (1m)5.2%
Revenue NQ rev (3m)5.81%
Revenue NY rev (1m)2.42%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 32 | ||
| P/S | 9.54 | ||
| P/FCF | 40.19 | ||
| P/OCF | 35.6 | ||
| P/B | 53.83 | ||
| P/tB | 53.83 | ||
| EV/EBITDA | 28.05 |
EPS(TTM)7.47
EY2.79%
EPS(NY)8.36
Fwd EY3.13%
FCF(TTM)6.66
FCFY2.49%
OCF(TTM)7.51
OCFY2.81%
SpS28.04
BVpS4.97
TBVpS4.97
PEG (NY)3.01
PEG (5Y)1.98
Graham Number28.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.18% | ||
| ROE | 151.91% | ||
| ROCE | 68.72% | ||
| ROIC | 55.64% | ||
| ROICexc | 76.36% | ||
| ROICexgc | 76.36% | ||
| OM | 31.97% | ||
| PM (TTM) | 26.92% | ||
| GM | 46.91% | ||
| FCFM | 23.73% |
ROA(3y)28.12%
ROA(5y)27.93%
ROE(3y)157.53%
ROE(5y)163.92%
ROIC(3y)51.04%
ROIC(5y)48.21%
ROICexc(3y)72.58%
ROICexc(5y)66.97%
ROICexgc(3y)72.58%
ROICexgc(5y)66.97%
ROCE(3y)63.07%
ROCE(5y)59.52%
ROICexgc growth 3Y6.76%
ROICexgc growth 5Y12.61%
ROICexc growth 3Y6.76%
ROICexc growth 5Y12.61%
OM growth 3Y1.82%
OM growth 5Y5.77%
PM growth 3Y2.07%
PM growth 5Y5.18%
GM growth 3Y2.69%
GM growth 5Y4.17%
F-Score8
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 108.69% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.02% | ||
| Profit Quality | 88.18% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 10.76 |
F-Score8
WACC8.66%
ROIC/WACC6.42
Cap/Depr(3y)95.46%
Cap/Depr(5y)96.21%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.82%
Profit Quality(3y)102.31%
Profit Quality(5y)103.35%
High Growth Momentum
Growth
EPS 1Y (TTM)10.67%
EPS 3Y6.93%
EPS 5Y18.04%
EPS Q2Q%12.8%
EPS Next Y11.89%
EPS Next 2Y10.96%
EPS Next 3Y10.93%
EPS Next 5Y13.46%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y1.81%
Revenue growth 5Y8.68%
Sales Q2Q%7.94%
Revenue Next Year8.07%
Revenue Next 2Y7.22%
Revenue Next 3Y7.05%
Revenue Next 5Y6.82%
EBIT growth 1Y7.98%
EBIT growth 3Y3.66%
EBIT growth 5Y14.95%
EBIT Next Year15.46%
EBIT Next 3Y11.4%
EBIT Next 5Y10.63%
FCF growth 1Y-9.23%
FCF growth 3Y-3.95%
FCF growth 5Y6.13%
OCF growth 1Y-5.73%
OCF growth 3Y-3%
OCF growth 5Y6.68%
APPLE INC / AAPL FAQ
What is the ChartMill fundamental rating of APPLE INC (AAPL) stock?
ChartMill assigns a fundamental rating of 7 / 10 to AAPL.
What is the valuation status of APPLE INC (AAPL) stock?
ChartMill assigns a valuation rating of 2 / 10 to APPLE INC (AAPL). This can be considered as Overvalued.
Can you provide the profitability details for APPLE INC?
APPLE INC (AAPL) has a profitability rating of 10 / 10.
What is the valuation of APPLE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for APPLE INC (AAPL) is 35.8 and the Price/Book (PB) ratio is 53.83.
Can you provide the financial health for AAPL stock?
The financial health rating of APPLE INC (AAPL) is 7 / 10.