APPLE INC (AAPL) Stock Fundamental Analysis
USA - NASDAQ:AAPL - US0378331005 - Common Stock
238.99 USD
+0.84 (+0.35%)
239.7 USD
+0.71 (+0.3%)
Taking everything into account, AAPL scores 7 out of 10 in our fundamental rating. AAPL was compared to 33 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. 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
AAPL had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 29.95%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL has a Return On Equity of 150.81%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
AAPL's Return On Invested Capital of 55.09% is amongst the best of the industry. AAPL outperforms 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 14.98%.
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
The Profit Margin of AAPL (24.30%) is better than 96.97% of its industry peers.
AAPL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 31.87%, AAPL belongs to the best of the industry, outperforming 96.97% 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 (46.68%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of AAPL has grown nicely.
| 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
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.
AAPL has less shares outstanding than it did 5 years ago.
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 10.37. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
AAPL has a better Altman-Z score (10.37) than 90.91% of its industry peers.
AAPL has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
The Debt to FCF ratio of AAPL (1.06) is better than 84.85% 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 worse Debt to Equity ratio (1.40) than 66.67% 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 | 1.4 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 10.37 |
ROIC/WACC6.44
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.87 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a worse Current ratio (0.87) than 78.79% of its industry peers.
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 45.45% of the companies in the same 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 | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.50% over the past year.
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
AAPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.86% yearly.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y11.43%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
EPS Next 5Y12.86%
Revenue Next Year6.1%
Revenue Next 2Y5.78%
Revenue Next 3Y5.84%
Revenue Next 5Y6.43%
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
A Price/Earnings ratio of 32.92 indicates a quite expensive valuation of AAPL.
60.61% of the companies in the same industry are more expensive than AAPL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, AAPL is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.31, the valuation of AAPL can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AAPL.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, AAPL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.92 | ||
| Fwd PE | 29.31 |
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 | 36.87 | ||
| EV/EBITDA | 25.06 |
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)2.88
PEG (5Y)1.84
EPS Next 2Y9.9%
EPS Next 3Y9.97%
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 1.85, 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 2.38.
| 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.
The dividend of AAPL decreased recently.
Dividend Growth(5Y)5.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AAPL pays out 15.47% 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.
DP15.47%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
238.99
+0.84 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.87%
Inst Owner Change0.6%
Ins Owners0.06%
Ins Owner Change-1.02%
Market Cap3546.70B
Analysts77.45
Price Target247.07 (3.38%)
Short Float %0.78%
Short Ratio2.12
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)3.3%
PT rev (3m)4.91%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)5.73%
EPS NY rev (1m)2.85%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.63%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.92 | ||
| Fwd PE | 29.31 | ||
| P/S | 8.68 | ||
| P/FCF | 36.87 | ||
| P/OCF | 32.67 | ||
| P/B | 53.88 | ||
| P/tB | 53.88 | ||
| EV/EBITDA | 25.06 |
EPS(TTM)7.26
EY3.04%
EPS(NY)8.15
Fwd EY3.41%
FCF(TTM)6.48
FCFY2.71%
OCF(TTM)7.32
OCFY3.06%
SpS27.53
BVpS4.44
TBVpS4.44
PEG (NY)2.88
PEG (5Y)1.84
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 | 10.37 |
F-Score7
WACC8.55%
ROIC/WACC6.44
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 Y11.43%
EPS Next 2Y9.9%
EPS Next 3Y9.97%
EPS Next 5Y12.86%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%9.63%
Revenue Next Year6.1%
Revenue Next 2Y5.78%
Revenue Next 3Y5.84%
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%