Apple Inc.
- 1-year return
- ▲ +38.8%
- 52-week range
- $246.63 – $343.46
- Market cap
- $5.0T
- P/E (trailing)
- 39.4
- Dividend yield
- 0.31%
Scorecard
Value checklist: 3/7 passed (score 43%). Growth checklist: 5/11 passed (score 45%). A profile needs a score of at least 60%. It doesn't clearly fit either profile; the closer fit is value.
Price history
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Revenue and net income
By fiscal year
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Earnings per share
Diluted EPS by fiscal year · Yahoo Finance (annual statements)
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Profit margins
Gross, operating and net margin by fiscal year
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Company
- Sector
- Technology
- Industry
- Consumer Electronics
- Country
- United States
- Market cap
- $5.0T
- Price
- $343.46 USD
- Annual dividend
- $1.08
- Employees
- 150,000
Business description
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. 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 Vision Pro, Apple TV, Apple Watch, Beats products, and HomePod, as well as Apple branded and third-party accessories. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allows customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV, which offers original content and live sports; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers and resellers. The company was formerly known as Apple Computer, Inc. and changed its name to Apple Inc. in January 2007. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.
Value checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Price / Earnings Growth (PEG) | Below 1 | 2.71 | Fail | Reported by Yahoo Finance |
| Price / Earnings (P/E) | Below 15 | 39.39 | Fail | |
| Price / Book (P/B) | Below 1 | 46.67 | Fail | |
| Return on Equity (ROE) | Above 15% | 148.75% | Pass | |
| Return on Assets (ROA) | Above 4% | 27.08% | Pass | |
| Debt / Equity (D/E) | Below 1 | 0.78 | Pass |
10-Year EPS Test
Fail| EPS 4.1 years ago | $6.11 |
| Current EPS | $8.72 |
| Lowest P/E in period | 20.26 |
| Current share price | $343.46 |
| Annual dividend per share | $1.08 |
| EPS growth rate | 9.06% |
| Projected EPS in 4.1 years | $12.44 |
| Projected trading price (lowest P/E x EPS) | $252.09 |
| Projected value (+ 4.1 yrs of dividends) | $256.51 |
| Annual compound return | -6.87% |
| Hurdle rate | 12.00% |
Inputs: FY 2022 EPS (Yahoo Finance (annual statements)); trailing 12-month EPS; lowest P/E in FY 2023
Only 4.1 years of EPS history available, so this is a shorter test than 10 years.
Growth checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Gross Profit Margin | Above 40% | 48.65% | Pass | |
| Operating Profit Margin | 10% to 25% | 32.62% | Fail | Above the range: very profitable, which fits a mature business more than one reinvesting for growth. |
| Net Profit Margin | Above 10% | 27.62% | Pass | |
| Return on Equity (ROE) | Above 15% | 148.75% | Pass | |
| Current Ratio | Above 2 | 1.00 | Fail | |
| Quick Ratio | Above 1.5 | 0.81 | Fail | |
| Accounts Receivable Turnover | Above 7.3 | 11.37 | Pass | |
| Inventory Turnover | Above 7.3 | 33.98 | Pass | |
| Healthy Working Capital (CA > CL) | Above $0 | -$17.7B | Fail | Current assets $148.0B vs current liabilities $165.6B |
| Revenue Growth (annual CAGR) * | Above 10% | 1.81% | Fail | |
| Expected EPS Growth (next year) * | Above 10% | 8.45% | Fail |
* Extra growth signal on top of the core checklist.
Qualitative: value factors
-
Small is BeautifulAgainst
Large-cap company ($5.0T market cap). It is widely followed by analysts and big investors, so the market is less likely to overlook it.
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Annuity BusinessAgainst
Income has not been a steady, recurring stream: the business description points to recurring income (subscription); revenue fell in 1 of the last 3 years.
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Durable Competitive AdvantageSupports
Gross margin of 48.7% and net margin of 27.6% show pricing power that competitors haven't eroded, a sign of a moat.
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Revenues & CommoditySupports
Revenue from Consumer Electronics isn't tied to commodity prices, so earnings are more predictable.
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Need for CapitalSupports
The business funds itself without heavy borrowing or spending: debt-to-equity is 0.78 (threshold: below 1); capital spending uses 11% of operating cash flow.
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Insider BuyingAgainst
In the past two years insiders made 0 purchases ($0) and 35 sales ($406.4M). No insider buying, so there's no signal that management sees the stock as undervalued.
Qualitative: growth factors
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Market PotentialAgainst
Its market doesn't look like a fast-growing one: it operates in fast-growing areas (cloud); revenue has grown 1.8% per year.
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New Goods/Services & Customer OrientationAgainst
R&D spending has grown 9.6% per year alongside 1.8% annual revenue growth, which doesn't show a strong pipeline of new products turning into sales.
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Research & DevelopmentNeutral
R&D is 8.3% of revenue, a moderate investment.
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Profit MarginsSupports
Gross 48.7%, operating 32.6%, net 27.6%. High margins show customers are willing to pay for its products.
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Market ShareNeutral
At $5.0T it is already a dominant player, so there's less room to gain share (revenue growth 1.8% per year).
Caveats
- EPS test: Only 4.1 years of EPS history available, so this is a shorter test than 10 years.
- Long-run EPS history comes from Yahoo Finance (about 4 years). Set SEC_USER_AGENT to use 10+ years of SEC filings, or enter the EPS test inputs yourself.