APPLE INC (AAPL)
US0378331005 - Common Stock
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. AAPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAPL is quite expensive at the moment. It does show a decent growth rate.
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.
AAPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAPL's Return On Assets of 28.55% is amongst the best of the industry. AAPL outperforms 96.88% of its industry peers.
AAPL has a Return On Equity of 136.18%. This is amongst the best in the industry. AAPL outperforms 100.00% of its industry peers.
AAPL has a Return On Invested Capital of 45.28%. This is amongst the best in the industry. AAPL outperforms 96.88% of its industry peers.
AAPL had an Average Return On Invested Capital over the past 3 years of 44.49%. This is significantly above the industry average of 14.47%.
The 3 year average ROIC (44.49%) for AAPL is below the current ROIC(45.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.55% | ||
| ROE | 136.18% | ||
| ROIC | 45.28% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
1.3 Margins
Looking at the Profit Margin, with a value of 26.16%, AAPL belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Profit Margin of AAPL has grown nicely.
The Operating Margin of AAPL (30.76%) is better than 96.88% of its industry peers.
AAPL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 45.03%, AAPL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
AAPL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.76% | ||
| PM (TTM) | 26.16% | ||
| GM | 45.03% |
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
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.
AAPL has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 7.90 indicates that AAPL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.90, 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 1.01, which is an excellent value as it means it would take AAPL, only 1.01 years of fcf income to pay off all of its debts.
AAPL has a better Debt to FCF ratio (1.01) than 87.50% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that AAPL has dependencies on debt financing.
AAPL has a Debt to Equity ratio of 1.31. This is in the lower half of the industry: AAPL underperforms 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 | 1.31 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 7.9 |
ROIC/WACC4.71
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.07 indicates that AAPL should not have too much problems paying its short term obligations.
The Current ratio of AAPL (1.07) is worse than 81.25% of its industry peers.
AAPL has a Quick Ratio of 1.02. This is a normal value and indicates that AAPL is financially healthy and should not expect problems in meeting its short term obligations.
AAPL has a Quick ratio of 1.02. This is in the lower half of the industry: AAPL underperforms 68.75% of 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 | 1.07 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.00% 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 15.58% on average per year.
The Revenue has decreased by -0.47% in the past year.
The Revenue has been growing slightly by 7.61% on average over the past years.
EPS 1Y (TTM)9%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q15.96%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q2.07%
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 10.41% yearly.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y10.41%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y7.2%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.63, AAPL can be considered very expensive at the moment.
AAPL's Price/Earnings ratio is a bit cheaper when compared to the industry. AAPL is cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of AAPL to the average of the S&P500 Index (25.20), we can say AAPL is valued inline with the index average.
AAPL is valuated rather expensively with a Price/Forward Earnings ratio of 23.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAPL is on the same level as its industry peers.
AAPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.63 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
AAPL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AAPL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.7 | ||
| EV/EBITDA | 20.17 |
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)2.89
PEG (5Y)1.71
EPS Next 2Y9.14%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, AAPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.75, AAPL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.57, AAPL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of AAPL grows each year by 6.58%, which is quite nice.
AAPL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
14.95% 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.
DP14.95%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
APPLE INC
NASDAQ:AAPL (4/26/2024, 10:08:10 AM)
170.971
+1.08 (+0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners61.45%
Inst Owner Change-0.68%
Ins Owners0.07%
Ins Owner Change-0.87%
Market Cap2640.11B
Analysts77.02
Price Target203.97 (19.3%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)6.58%
DP14.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.36%
Min EPS beat(2)1.87%
Max EPS beat(2)2.86%
EPS beat(4)4
Avg EPS beat(4)3.02%
Min EPS beat(4)1.87%
Max EPS beat(4)3.95%
EPS beat(8)6
Avg EPS beat(8)1.56%
EPS beat(12)9
Avg EPS beat(12)7.12%
EPS beat(16)13
Avg EPS beat(16)8.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)0.92%
Revenue beat(16)7
Avg Revenue beat(16)2.08%
PT rev (1m)-0.71%
PT rev (3m)0.2%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-6.29%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.63 | ||
| Fwd PE | 23.45 | ||
| P/S | 6.84 | ||
| P/FCF | 24.7 | ||
| P/OCF | 22.67 | ||
| P/B | 35.63 | ||
| P/tB | 35.63 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)6.42
EY3.76%
EPS(NY)7.29
Fwd EY4.26%
FCF(TTM)6.92
FCFY4.05%
OCF(TTM)7.54
OCFY4.41%
SpS24.98
BVpS4.8
TBVpS4.8
PEG (NY)2.89
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.55% | ||
| ROE | 136.18% | ||
| ROCE | 54.05% | ||
| ROIC | 45.28% | ||
| ROICexc | 67.58% | ||
| ROICexgc | 67.58% | ||
| OM | 30.76% | ||
| PM (TTM) | 26.16% | ||
| GM | 45.03% | ||
| FCFM | 27.71% |
ROA(3y)27.59%
ROA(5y)23.37%
ROE(3y)167.7%
ROE(5y)130.41%
ROIC(3y)44.49%
ROIC(5y)36.23%
ROICexc(3y)60.39%
ROICexc(5y)52.51%
ROICexgc(3y)60.39%
ROICexgc(5y)52.51%
ROCE(3y)54.51%
ROCE(5y)44.27%
ROICexcg growth 3Y14.64%
ROICexcg growth 5Y15.74%
ROICexc growth 3Y14.64%
ROICexc growth 5Y15.74%
OM growth 3Y7.29%
OM growth 5Y2.24%
PM growth 3Y6.56%
PM growth 5Y2.46%
GM growth 3Y4.9%
GM growth 5Y2.85%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 83.52% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.49% | ||
| Profit Quality | 105.9% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 7.9 |
F-Score8
WACC9.62%
ROIC/WACC4.71
Cap/Depr(3y)96.6%
Cap/Depr(5y)87.91%
Cap/Sales(3y)2.87%
Cap/Sales(5y)3.06%
Profit Quality(3y)104.17%
Profit Quality(5y)109.38%
Growth
EPS 1Y (TTM)9%
EPS 3Y23.36%
EPS 5Y15.58%
EPS growth Q2Q15.96%
EPS Next Y9.23%
EPS Next 2Y9.14%
EPS Next 3Y8.75%
EPS Next 5Y10.41%
Revenue 1Y (TTM)-0.47%
Revenue growth 3Y11.77%
Revenue growth 5Y7.61%
Revenue growth Q2Q2.07%
Revenue Next Year1.27%
Revenue Next 2Y3.86%
Revenue Next 3Y4.2%
Revenue Next 5Y7.2%
EBIT growth 1Y4.12%
EBIT growth 3Y19.91%
EBIT growth 5Y10.02%
EBIT Next Year15.82%
EBIT Next 3Y9.61%
EBIT Next 5Y9.57%
FCF growth 1Y4.92%
FCF growth 3Y10.72%
FCF growth 5Y9.2%
OCF growth 1Y3.73%
OCF growth 3Y11.07%
OCF growth 5Y7.38%