NasdaqGS:AAPL

Stock Analysis Report

Executive Summary

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.


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


Market Performance


7 Day Return

4.0%

AAPL

3.7%

US Tech

1.0%

US Market


1 Year Return

8.7%

AAPL

7.7%

US Tech

6.7%

US Market

Return vs Industry: AAPL exceeded the US Tech industry which returned 7.7% over the past year.

Return vs Market: AAPL exceeded the US Market which returned 6.7% over the past year.


Share holder returns

AAPLIndustryMarket
7 Day4.0%3.7%1.0%
30 Day8.0%6.6%-1.8%
90 Day15.5%14.0%-1.8%
1 Year10.4%8.7%9.5%7.7%9.1%6.7%
3 Year110.8%100.9%100.3%84.9%46.1%36.6%
5 Year158.0%136.8%132.2%108.5%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

19.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: AAPL ($236.21) is trading above our estimate of fair value ($187.37)

Significantly Undervalued: AAPL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: AAPL is good value based on its PE Ratio (19.9x) compared to the Tech industry average (20.4x).

PE vs Market: AAPL is poor value based on its PE Ratio (19.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: AAPL is poor value based on its PEG Ratio (7.9x)


Price Based on Value of Assets

PB vs Industry: AAPL is overvalued based on its PB Ratio (11.1x) compared to the US Tech industry average (1.6x).


Next Steps

Future Growth

How is Apple expected to perform in the next 1 to 3 years based on estimates from 40 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: AAPL's forecast earnings growth (2.5% per year) is below the savings rate (2.7%).

Earnings vs Market: AAPL's earnings (2.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AAPL's revenue (4.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AAPL's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AAPL's Return on Equity is forecast to be very high in 3 years time (94.8%).


Next Steps

Past Performance

How has Apple performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AAPL's earnings have grown by 5.6% 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 (-0.7%) over the past year, making it difficult to compare to the Tech industry average (64%).


Return on Equity

High ROE: Whilst AAPL's Return on Equity (57.74%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: AAPL has a higher Return on Assets than the Tech industry average last year.


Return on Capital Employed

ROCE Improving: AAPL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Apple's financial position?


Financial Position Analysis

Short Term Liabilities: AAPL's short term assets ($135.0B) exceeds its short term liabilities ($89.7B)

Long Term Liabilities: AAPL's short term assets (135.0B) do not cover its long term liabilities (136.1B)


Debt to Equity History and Analysis

Debt Level: AAPL's debt to equity ratio (112.4%) is considered high

Reducing Debt: AAPL's debt to equity ratio has increased from 25.8% to 112.4% over the past 5 years.

Debt Coverage: AAPL's debt is well covered by operating cash flow (63.6%).

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 1.244930x debt).


Next Steps

Dividend

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

1.36%

Expected Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Years1.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: AAPL's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AAPL's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (25%), 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 (24.8% payout ratio).


Next Steps

Management

What is the CEO of Apple's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Tim Cook (58yo)

8.2yrs

Tenure

US$15,682,219

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 ($USD15.68M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

8.2yrs

Average Tenure

69yo

Average Age

Experienced Board: AAPL's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: AAPL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$951,63505 Aug 19
Chris Kondo
EntityIndividual
Role
Chief Accounting Officer
Senior Director of Corporate Accounting
Shares4,376
Max PriceUS$217.47

Ownership Breakdown


Management Team

  • Tim Cook (58yo)

    CEO & Director

    • Tenure: 8.2yrs
    • Compensation: US$15.68m
  • Phil Schiller (59yo)

    Senior Vice President of Worldwide Marketing

    • Tenure: 17.7yrs
    • Compensation: US$6.78m
  • Kate Adams (55yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: US$26.82m
  • Luca Maestri (55yo)

    CFO & Senior VP

    • Tenure: 5.4yrs
    • Compensation: US$26.51m
  • Jeff Williams (55yo)

    Chief Operating Officer

    • Tenure: 3.8yrs
    • Compensation: US$26.54m
  • Chris Kondo

    Senior Director of Corporate Accounting

    • Tenure: 4.8yrs
  • Nancy Paxton

    Director-Investor Relations

    • Tenure: 0yrs
  • James Wilson

    Chief Technology Officer

    • Tenure: 0.7yrs
  • Adrian Perica

    Vice President of Corporate Development

    • Tenure: 0.8yrs
  • Mary Demby

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Tim Cook (58yo)

    CEO & Director

    • Tenure: 8.2yrs
    • Compensation: US$15.68m
  • Art Levinson (69yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$567.19k
  • Andrea Jung (61yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$403.11k
  • Ron Sugar (70yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$409.46k
  • Al Gore (71yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$358.54k
  • James Bell (70yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$362.67k
  • Sue Wagner (58yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$353.18k

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$1.067t
  • Shares outstanding: 4.52b
  • 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
AAPLUKR (PFTS Ukraine Stock Exchange)YesCommon StockUAUAHDec 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
AAPL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1980
AAPLBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPDec 1980
AAPLBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDDec 1980
AAPLSNSE (Santiago Stock Exchange)YesCommon StockCLUSDDec 1980
AAPLWBAG (Wiener Boerse AG)YesCommon StockATEURDec 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 mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:02
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.

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