NasdaqGS:AAPL

Stock Analysis Report

Executive Summary

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Apple's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.7%

AAPL

-6.5%

US Tech

-4.2%

US Market


1 Year Return

65.3%

AAPL

63.1%

US Tech

14.0%

US Market

Return vs Industry: AAPL exceeded the US Tech industry which returned 63.1% over the past year.

Return vs Market: AAPL exceeded the US Market which returned 14% over the past year.


Shareholder returns

AAPLIndustryMarket
7 Day-9.7%-6.5%-4.2%
30 Day-9.5%-6.6%-1.8%
90 Day7.6%10.2%2.6%
1 Year67.4%65.3%65.5%63.1%16.3%14.0%
3 Year119.7%110.3%112.2%97.7%43.2%34.0%
5 Year142.0%122.7%130.0%107.5%65.9%47.6%

Price Volatility Vs. Market

How volatile is Apple's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apple undervalued compared to its fair value and its price relative to the market?

22.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAPL ($298.18) is trading above our estimate of fair value ($272.58)

Significantly Below Fair Value: AAPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AAPL is poor value based on its PE Ratio (23.5x) compared to the Tech industry average (20.6x).

PE vs Market: AAPL is poor value based on its PE Ratio (23.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AAPL is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AAPL is overvalued based on its PB Ratio (14.6x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

How is Apple forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAPL's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: AAPL's earnings (6.3% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: AAPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: AAPL's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AAPL's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAPL's Return on Equity is forecast to be very high in 3 years time (139.4%).


Next Steps

Past Performance

How has Apple performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAPL has high quality earnings.

Growing Profit Margin: AAPL's current net profit margins (21.5%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: AAPL's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: AAPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AAPL had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Tech industry average (-3.2%).


Return on Equity

High ROE: Whilst AAPL's Return on Equity (64.25%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Apple's financial position?


Financial Position Analysis

Short Term Liabilities: AAPL's short term assets ($163.2B) exceed its short term liabilities ($102.2B).

Long Term Liabilities: AAPL's short term assets ($163.2B) exceed its long term liabilities ($148.9B).


Debt to Equity History and Analysis

Debt Level: AAPL's debt to equity ratio (121%) is considered high.

Reducing Debt: AAPL's debt to equity ratio has increased from 29.6% to 121% over the past 5 years.

Debt Coverage: AAPL's debt is well covered by operating cash flow (67.6%).

Interest Coverage: AAPL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AAPL has a low level of unsold assets or inventory.

Debt Coverage by Assets: AAPL's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is Apple's current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: AAPL's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: AAPL's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AAPL has been paying a dividend for less than 10 years.

Growing Dividend: AAPL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24%), AAPL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAPL's dividends in 3 years are forecast to be well covered by earnings (21.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Tim Cook (58yo)

8.5yrs

Tenure

US$11,555,466

Compensation

Mr. Timothy D. Cook, also known as Tim, has been the Chief Executive Officer of Apple Inc. since August 24, 2011. Mr. Cook served as the Chief Operating Officer of Apple Inc., from October 14, 2005 to Augu ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD11.56M) is about average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Cook
CEO & Director8.5yrsUS$11.56m0.019% $252.8m
Luca Maestri
CFO & Senior VP5.8yrsUS$25.21m0.00063% $8.2m
Jeffrey Williams
Chief Operating Officer4.2yrsUS$25.21m0.0028% $36.4m
Katherine Adams
Senior VP2.2yrsUS$25.23m0.00052% $6.8m
Deirdre O'Brien
Senior Vice President of People & Retail2.6yrsUS$19.16m0.00077% $10.0m
Chris Kondo
Senior Director of Corporate Accounting5.2yrsno data0.00019% $2.5m
James Wilson
Chief Technology Officer1yrsno datano data
Mary Demby
Chief Information Officer0yrsno datano data
Nancy Paxton
Director-Investor Relations0yrsno datano data
Philip Schiller
Senior VP of Worldwide Marketing & Interim VP of Communications0.3yrsUS$6.78mno data

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: AAPL's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Cook
CEO & Director8.5yrsUS$11.56m0.019% $252.8m
Arthur Levinson
Independent Non-Executive Chairman of the Board8.3yrsUS$557.92k0.026% $342.1m
Andrea Jung
Independent Director12.1yrsUS$385.39k0.00055% $7.2m
Ronald Sugar
Independent Director9.3yrsUS$400.88k0.00056% $7.3m
Albert Gore
Independent Director17.1yrsUS$360.26k0.0026% $34.3m
James Bell
Independent Director4.3yrsUS$355.84k0.00018% $2.3m
Susan Wagner
Independent Director5.6yrsUS$354.92k0.00034% $4.4m

8.5yrs

Average Tenure

69yo

Average Age

Experienced Board: AAPL's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Apple Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apple Inc.
  • Ticker: AAPL
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$1.305t
  • Shares outstanding: 4.38b
  • Website: https://www.apple.com

Number of Employees


Location

  • Apple Inc.
  • One Apple Park Way
  • Cupertino
  • California
  • 95014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAPLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1980
AAPL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1980
APCDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1980
0R2VLSE (London Stock Exchange)YesCommon StockGBUSDDec 1980
AAPLSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1980
APCXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1980
AAPLBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPDec 1980
AAPLSNSE (Santiago Stock Exchange)YesCommon StockCLUSDDec 1980
AP-UETLX (Eurotlx)YesCommon StockITEURDec 1980
AAPLWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1980
AAPLBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDDec 1980
AAPLUKR (PFTS Ukraine Stock Exchange)YesCommon StockUAUAHDec 1980
US_AAPLKAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTDec 1980
AAPL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/10 COM NPVBRBRLMay 2011
AAPLBASE (Buenos Aires Stock Exchange)CEDEAR(REPR 1/10 SHR)USDARARSAug 2012

Biography

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. It also provides digital content stores and streaming services; AppleCare support services; and iCloud, a cloud service, which stores music, photos, contacts, calendars, mail, documents, and others. In addition, the company offers various service, such as Apple Arcade, a game subscription service; Apple Card, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service, as well as licenses its intellectual property, and provides other related services. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It sells and delivers third-party applications for its products through the App Store, Mac App Store, and Watch App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:58
End of Day Share Price2020/02/25 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.