APPLE INC (AAPL) Stock Fundamental Analysis
NASDAQ:AAPL - Nasdaq - US0378331005 - Common Stock - Currency: USD
AAPL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 32 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make AAPL suitable 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.
In the past 5 years AAPL always reported a positive cash flow from operatings.
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.
The Return On Equity of AAPL (145.66%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 56.03%, AAPL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAPL had an Average Return On Invested Capital over the past 3 years of 48.83%. This is significantly above the industry average of 16.42%.
The last Return On Invested Capital (56.03%) for AAPL is above the 3 year average (48.83%), which is a sign of increasing profitability.
| 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.
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 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
AAPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AAPL has less shares outstanding
The number of shares outstanding for AAPL has been reduced compared to 5 years ago.
AAPL has a better debt/assets ratio than last year.
2.2 Solvency
AAPL has an Altman-Z score of 9.14. This indicates that AAPL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AAPL (9.14) 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 has a better Debt to FCF ratio (1.00) than 90.63% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. AAPL is outperformed by 71.88% 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 | 1.27 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.14 |
ROIC/WACC6.24
WACC8.98%
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.
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 in line with its industry peers.
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 | 0.82 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.26% over the past year.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
Looking at the last year, AAPL shows a small growth in Revenue. The Revenue has grown by 4.91% in the last 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
Based on estimates for the next years, AAPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y8.31%
EPS Next 2Y8.52%
EPS Next 3Y8.97%
EPS Next 5Y12.49%
Revenue Next Year4.23%
Revenue Next 2Y4.91%
Revenue Next 3Y5.16%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AAPL is valuated quite expensively with a Price/Earnings ratio of 28.41.
AAPL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (26.53), we can say AAPL is valued inline with the index average.
AAPL is valuated quite expensively with a Price/Forward Earnings ratio of 25.34.
AAPL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAPL is more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AAPL to the average of the S&P500 Index (22.27), we can say AAPL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AAPL.
Based on the Price/Free Cash Flow ratio, AAPL is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.55 | ||
| EV/EBITDA | 21.84 |
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)3.42
PEG (5Y)1.59
EPS Next 2Y8.52%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.52, AAPL pays less dividend than the S&P500 average, which is at 2.39.
| 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 been paying a dividend for at least 10 years, so it has 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
AAPL pays out 15.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of AAPL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.74%
EPS Next 2Y8.52%
EPS Next 3Y8.97%
201.45
-2.47 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners62.58%
Inst Owner Change0.2%
Ins Owners0.06%
Ins Owner Change-0.66%
Market Cap3008.82B
Analysts77.54
Price Target235.49 (16.9%)
Short Float %0.72%
Short Ratio1.65
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)-0.86%
PT rev (3m)-7.66%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.34 | ||
| P/S | 7.52 | ||
| P/FCF | 30.55 | ||
| P/OCF | 27.46 | ||
| P/B | 45.04 | ||
| P/tB | 45.04 | ||
| EV/EBITDA | 21.84 |
EPS(TTM)7.09
EY3.52%
EPS(NY)7.95
Fwd EY3.95%
FCF(TTM)6.59
FCFY3.27%
OCF(TTM)7.34
OCFY3.64%
SpS26.81
BVpS4.47
TBVpS4.47
PEG (NY)3.42
PEG (5Y)1.59
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 | 9.14 |
F-Score7
WACC8.98%
ROIC/WACC6.24
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 Y8.31%
EPS Next 2Y8.52%
EPS Next 3Y8.97%
EPS Next 5Y12.49%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y2.25%
Revenue growth 5Y8.49%
Sales Q2Q%5.08%
Revenue Next Year4.23%
Revenue Next 2Y4.91%
Revenue Next 3Y5.16%
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%