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AAPL

AppleNasdaqGS:AAPL Stock Report

Market Cap

US$2.4t

7D

2.6%

1Y

26.4%

Updated

18 Oct, 2021

Data

Company Financials +
AAPL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends0/6

AAPL Overview

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

Apple Competitors

HP

NYSE:HPQ

US$32.6b

Hewlett Packard Enterprise

NYSE:HPE

US$19.8b

3D Systems

NYSE:DDD

US$3.3b

Avid Technology

NasdaqGS:AVID

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Apple
Historical stock prices
Current Share PriceUS$146.55
52 Week HighUS$107.32
52 Week LowUS$157.26
Beta1.22
1 Month Change0.34%
3 Month Change0.27%
1 Year Change26.36%
3 Year Change165.67%
5 Year Change398.26%
Change since IPO43,963.39%

Recent News & Updates

Oct 13

Apple: Nothing Available At Any Price

Last Thursday, in an article published, I took a look at the supply chain, focusing on the lack of availability of critical components and resources. This is playing out real-time, as the market's largest-capitalization company, Apple, announced that they were cutting production forecasts for their iPhone 13 due to a lack of semiconductor availability. The ramifications of a supply chain disruption are only getting started, and there will be companies that benefit, like the commodity sector, and companies that are disadvantaged. Previously, I turned bullish on Apple shares in May of 2016, when I used the headline that Apple shares were selling at their cheapest valuation in a decade. However, in August of 2020, and August of 2021, I pointed out that Apple shares were trading at their most expensive valuation in a decade. Since the publication date of those articles, Apple shares have underperformed the S&P 500 Index.

Oct 11
Apple (NASDAQ:AAPL) Is Investing Its Capital With Increasing Efficiency

Apple (NASDAQ:AAPL) Is Investing Its Capital With Increasing Efficiency

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Oct 07

Apple - Bankruptcy Immunity

Apple continues to face global regulatory risks to its Services business, as represented by the App Store on iOS. The silver lining due to the passage of global regulations targeting the App Store would be a strengthening of 3 Competitive Advantages. Valuation as assessed by DCF and a Discounted Dividend Model (inclusive of Reverse DCF and Discounted Dividend models) suggest fair valuation for the company in light of the ongoing correction.

Oct 01

Nvidia Vs. Apple: How To Analyze These Two Stocks

Apple is the most prominent company of the technology bellwethers. It boasts a highly strategic services segment ecosystem. Nvidia is one of the leading semiconductor stocks for 2021. It has greatly enhanced its software suite to protect its hardware leadership. We help readers to think about how to go about analyzing these two behemoths in this article. We will also show our readers why we think one of them is at a buy point now.

Sep 27

Apple's Exposure To China's Evergrande Crisis: Short-Term Headwind, Long-Term Tailwind

The collapse of China's second-largest property developer, Evergrande, could wreak havoc in the Chinese economy, which is already losing growth momentum. Nearly one-fifth of Apple's sales come from China (which is Apple's fastest-growing market), and so, a potential slump in the Chinese economy is naturally causing jitters across Apple's shareholder base. Early iPhone13 pre-order data from China is encouraging; however, investors should keep a close eye on Apple's performance in this region over coming quarters. Since the iPhone 13 launch event, Apple's stock has had a small dip. Although China's crisis is an evolving situation, I see Apple as a safe haven investment for the next decade. I rate Apple a buy at $144.

Shareholder Returns

AAPLUS TechUS Market
7D2.6%1.3%2.0%
1Y26.4%25.1%27.6%

Return vs Industry: AAPL underperformed the US Tech industry which returned 25.1% over the past year.

Return vs Market: AAPL underperformed the US Market which returned 27.6% over the past year.

Price Volatility

Is AAPL's price volatile compared to industry and market?
AAPL volatility
AAPL Beta1.22
Industry Beta1.22
Market Beta1

Stable Share Price: AAPL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AAPL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977147,000Tim Cookhttps://www.apple.com

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.

Apple Fundamentals Summary

How do Apple's earnings and revenue compare to its market cap?
AAPL fundamental statistics
Market CapUS$2.42t
Earnings (TTM)US$86.80b
Revenue (TTM)US$347.16b

27.9x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAPL income statement (TTM)
RevenueUS$347.16b
Cost of RevenueUS$204.80b
Gross ProfitUS$142.35b
ExpensesUS$55.55b
EarningsUS$86.80b

Last Reported Earnings

Jun 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.25
Gross Margin41.01%
Net Profit Margin25.00%
Debt/Equity Ratio189.5%

How did AAPL perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAPL ($144.84) is trading below our estimate of fair value ($186.98)

Significantly Below Fair Value: AAPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAPL is poor value based on its PE Ratio (27.6x) compared to the US Tech industry average (17.6x).

PE vs Market: AAPL is poor value based on its PE Ratio (27.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AAPL is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: AAPL is overvalued based on its PB Ratio (37.2x) compared to the US Tech industry average (2.3x).


Future Growth

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

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAPL's forecast earnings growth (2.6% per year) is above the savings rate (2%).

Earnings vs Market: AAPL's earnings (2.6% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: AAPL's revenue (5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AAPL's revenue (5% 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 (137.5%).


Past Performance

How has Apple performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAPL has high quality earnings.

Growing Profit Margin: AAPL's current net profit margins (25%) are higher than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: AAPL's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: AAPL's earnings growth over the past year (48.6%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: AAPL earnings growth over the past year (48.6%) underperformed the Tech industry 63.2%.


Return on Equity

High ROE: Whilst AAPL's Return on Equity (135.04%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Apple's financial position?


Financial Position Analysis

Short Term Liabilities: AAPL's short term assets ($114.4B) exceed its short term liabilities ($107.8B).

Long Term Liabilities: AAPL's short term assets ($114.4B) do not cover its long term liabilities ($157.8B).


Debt to Equity History and Analysis

Debt Level: AAPL's debt to equity ratio (189.5%) is considered high.

Reducing Debt: AAPL's debt to equity ratio has increased from 67.1% to 189.5% over the past 5 years.

Debt Coverage: AAPL's debt is well covered by operating cash flow (85.7%).

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


Balance Sheet


Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAPL's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: AAPL's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: AAPL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AAPL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AAPL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAPL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Tim Cook (60 yo)

10.17yrs

Tenure

US$14,769,259

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 ($USD14.77M) is above average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AAPL's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: AAPL's board of directors are seasoned and experienced ( 10 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Apple Inc.'s 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$2.422t
  • Shares outstanding: 16.53b
  • Website: https://www.apple.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 22:50
End of Day Share Price2021/10/18 00:00
Earnings2021/06/26
Annual Earnings2020/09/26


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.