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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years AAPL has been profitable.
Each year in the past 5 years AAPL had a positive operating cash flow.
1.2 Ratios
AAPL's Return On Assets of 29.37% is amongst the best of the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a better Return On Equity (145.66%) than 100.00% of its industry peers.
AAPL has a Return On Invested Capital of 56.03%. This is amongst the best in the industry. AAPL outperforms 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 16.14%.
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
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.
With an excellent Operating Margin value of 31.81%, AAPL belongs to the best of the industry, outperforming 96.88% 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 (46.63%) than 81.25% of its industry peers.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| 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.
Compared to 1 year ago, AAPL has less shares outstanding
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 9.27. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AAPL (9.27) is better than 93.75% of its industry peers.
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.
AAPL's Debt to FCF ratio of 1.00 is amongst the best of the industry. AAPL outperforms 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.
The Debt to Equity ratio of AAPL (1.27) is worse than 68.75% 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 | 1.27 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.27 |
ROIC/WACC5.56
WACC10.08%
2.3 Liquidity
AAPL has a Current 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 worse Current ratio (0.82) than 84.38% of its industry peers.
A Quick Ratio of 0.78 indicates that AAPL may have some problems paying its short term obligations.
AAPL has a Quick ratio (0.78) which is comparable to the rest of the 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 | 0.82 | ||
| 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.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 4.91% in the last year.
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
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.
Based on estimates for the next years, AAPL will show a small growth in Revenue. The Revenue will grow by 6.22% on average per year.
EPS Next Y8.37%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5Y12.49%
Revenue Next Year4.27%
Revenue Next 2Y4.94%
Revenue Next 3Y5.25%
Revenue Next 5Y6.22%
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
With a Price/Earnings ratio of 28.94, AAPL can be considered very expensive at the moment.
AAPL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, AAPL is valued at the same level.
The Price/Forward Earnings ratio is 25.85, 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.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (21.60), we can say AAPL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAPL indicates a somewhat cheap valuation: AAPL is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.11 | ||
| EV/EBITDA | 22.24 |
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)3.46
PEG (5Y)1.62
EPS Next 2Y8.43%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, AAPL is not a good candidate for dividend investing.
AAPL's Dividend Yield is a higher than the industry average which is at 1.99.
Compared to an average S&P500 Dividend Yield of 2.42, AAPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
15.74% 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.
DP15.74%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
205.17
+4.09 (+2.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.72%
Inst Owner Change0.2%
Ins Owners0.06%
Ins Owner Change0.35%
Market Cap3064.38B
Analysts77.54
Price Target235.64 (14.85%)
Short Float %0.65%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)-0.8%
PT rev (3m)-7.79%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-5.74%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 25.85 | ||
| P/S | 7.65 | ||
| P/FCF | 31.11 | ||
| P/OCF | 27.97 | ||
| P/B | 45.88 | ||
| P/tB | 45.88 | ||
| EV/EBITDA | 22.24 |
EPS(TTM)7.09
EY3.46%
EPS(NY)7.94
Fwd EY3.87%
FCF(TTM)6.59
FCFY3.21%
OCF(TTM)7.34
OCFY3.58%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.46
PEG (5Y)1.62
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 | 9.27 |
F-Score7
WACC10.08%
ROIC/WACC5.56
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 Y8.37%
EPS Next 2Y8.43%
EPS Next 3Y8.81%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.27%
Revenue Next 2Y4.94%
Revenue Next 3Y5.25%
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%