Apple Stock Analysis (NASDAQ:AAPL)
Apple Analysis Video
Apple company analysis shows that not only has it been one of the most innovative companies of the decade, but it has also been among the best tech stocks, and has grown to become 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 good returns.
Apple Inc. Stock Rating (4.1/5)
Should you buy AAPL stock?
- Revenue growth has been tremendous with a compounded annual growth of 21.1% over the last 5 years.
- Apple had a healthy average operating margin of 28.6% over the last 4 quarters.
- Net margins came in at average 21.7% for Apple over the last twelve months.
- The Apple stock currently trades at a price to earnings ratio of 13.7. We rate this as a positive, compared to the industry average of 23.9.
- 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 good Free Cash Flow (FCF) margin of 18.5%.
Apple stock analysis reveals that it is one of the best performing stocks of the decade. The company has consistently come out with innovative products. Recent patent applications show that Apple will remain a growth stock, and the same will also be reflected in a financial analysis of Apple Inc. 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 and device control; and many more. The company has also patented a way to make sapphire screens stronger.
Apple Inc financial analysis also highlights the huge pile of cash the company is currently sitting on. Even after initiating massive buybacks of Apple shares, the firm has a huge cash reserve as seen in the Apple balance sheet. Apple had over $231 billion (as of June, 2016).
Our financial analysis of Apple also highlights the growth in Apple revenue, profit margins, 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 the industry average.