Logo image of AAPL

APPLE INC (AAPL) Stock Fundamental Analysis

NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD

213.88  +0.12 (+0.06%)

After market: 213.911 +0.03 (+0.01%)

Fundamental Rating

7

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.


Dividend Valuation Growth Profitability Health

10

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.
AAPL Yearly Net Income VS EBIT VS OCF VS FCFAAPL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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 RankSector 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%
AAPL Yearly ROA, ROE, ROICAAPL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 100 150

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 RankSector 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%
AAPL Yearly Profit, Operating, Gross MarginsAAPL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

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.
AAPL Yearly Shares OutstandingAAPL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
AAPL Yearly Total Debt VS Total AssetsAAPL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

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 RankSector Rank
Debt/Equity 1.27
Debt/FCF 1
Altman-Z 9.56
ROIC/WACC6.29
WACC8.91%
AAPL Yearly LT Debt VS Equity VS FCFAAPL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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 RankSector Rank
Current Ratio 0.82
Quick Ratio 0.78
AAPL Yearly Current Assets VS Current LiabilitesAAPL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

5

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.
AAPL Yearly Revenue VS EstimatesAAPL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200B 400B 600B
AAPL Yearly EPS VS EstimatesAAPL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15

3

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 RankSector Rank
PE 30.17
Fwd PE 26.97
AAPL Price Earnings VS Forward Price EarningsAAPL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 32.44
EV/EBITDA 23.16
AAPL Per share dataAAPL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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

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 RankSector 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
AAPL Yearly Dividends per shareAAPL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
AAPL Yearly Income VS Free CF VS DividendAAPL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B
AAPL Dividend Payout.AAPL Dividend Payout, showing the Payout Ratio.AAPL Dividend Payout.PayoutRetained Earnings

APPLE INC

NASDAQ:AAPL (7/25/2025, 7:25:27 PM)

After market: 213.911 +0.03 (+0.01%)

213.88

+0.12 (+0.06%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-31 2025-07-31/amc
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 RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.99
Dividend Growth(5Y)5.3%
DP15.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-12 2025-05-12 (0.26)
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 RankSector 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 RankSector 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 RankSector 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%