# AAPL: Apple Inc.

**Verdict: NEITHER** · Confidence 62% · Value score 43% · Growth score 45%

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.

## Company

|  |  |
|---|---|
| Sector | Technology |
| Industry | Consumer Electronics |
| Country | United States |
| Market cap | $5.0T |
| Price | $343.46 USD |
| Annual dividend | $1.08 |
| Employees | 150,000 |

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

| Step | Value |
|---|---|
| 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% |
| Result | **Fail** |

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 Analysis: Value Factors

| Factor | Signal | Evidence |
|---|---|---|
| Small is Beautiful | Against | 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. |
| Annuity Business | Against | 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. |
| Durable Competitive Advantage | Supports | Gross margin of 48.7% and net margin of 27.6% show pricing power that competitors haven't eroded, a sign of a moat. |
| Revenues & Commodity | Supports | Revenue from Consumer Electronics isn't tied to commodity prices, so earnings are more predictable. |
| Need for Capital | Supports | 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. |
| Insider Buying | Against | 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 Analysis: Growth Factors

| Factor | Signal | Evidence |
|---|---|---|
| Market Potential | Against | Its market doesn't look like a fast-growing one: it operates in fast-growing areas (cloud); revenue has grown 1.8% per year. |
| New Goods/Services & Customer Orientation | Against | 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. |
| Research & Development | Neutral | R&D is 8.3% of revenue, a moderate investment. |
| Profit Margins | Supports | Gross 48.7%, operating 32.6%, net 27.6%. High margins show customers are willing to pay for its products. |
| Market Share | Neutral | 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.

## Sources

- Yahoo Finance (yfinance): price, ratios, financial statements, insider transactions
- Data fetched: 2026-10-19T13:18:53+00:00

> ⚠️ For educational purposes only. This is not financial or investment advice.