Apple Stock Analysis (NASDAQ:AAPL)
Apple company analysis shows that not only has it been one of the greatest innovators of the decade, but has also been greatest tech stocks, and one of the largest companies by market cap. Based on our Apple stock analysis, we expect that the earnings growth will not be slowing down anytime in the near future, and investors can still expect great returns.
Apple Inc. Stock Rating (4.4/5)
Should you buy AAPL stock?
- Long term revenue growth has been strong with a 5 year compounded annual growth of 21.1%.
- Apple had a healthy average operating margin of 28.6% over the last 4 quarters.
- LTM Net margins were good at 21.7% for Apple.
- The price to earnings multiple of 12.5 is attractive when compared with the industry average PE ratio of 24.2.
- Apple has an attractive ROIC (Return on Invested Capital) of 25.7%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Apple at 37.9%.
- The company has a healthy free cash flow margin of 18.5%.
Amigobulls Apple analysis reveals that it is one of the best stocks of the decade. The company has consistently come out with innovative products. Recent patent applications show that Apple is still a growth stock, and the same is supported by Apple Inc financial analysis. One such patent shows how electronic devices such as the iPhone could be used to detect temperature, pressure etc.; another describes a touch sensitive button that can prevent accidental inputs; yet another one which uses face detection and recognition for personal computing device control; and many more. The company has also patented a way to make sapphire screens stronger.
Apple Inc financial analysis also reveals the huge pile of cash the firm is sitting on. Even after initiating massive buyback of Apple shares, the firm has a huge cash reserve as seen from Apple stock price history. To put this in perspective, Apple had 160 billion (as of Apr, 2014) which was three times as much cash on hand as that of the United States government, and over twice as much as that of United Kingdom.
Our financial analysis of Apple also highlights the Apple revenue growth which has been solid, operating efficiency, and the total assets of Apple. In addition to this Apple industry analysis proves that it is a value stock when we compare valuation metrics against industry average. For example, Apple is trading at a fairly reasonable PE, as seen from Apple PE ratio chart, when compared with peers and industry average.