Apple Stock Analysis (NASDAQ:AAPL)
Apple Valuation VideoGraph
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 Stock Rating: (4.4/5)
Is Apple a Stock to Buy?
- Revenue has grown at a compounded annual rate of 29.1% over the last 5 years.
- Apple Inc. reported a Net profit margin of 21.6% in 2015-Q4
- AAPL stock reported an average Net profit margin of 21.8% over the last 3 years.
- AAPL stock is trading at a price to earnings ratio of 12.8x against the industry average (Computer-Mini) of 25.
- Apple Inc. has an attractive ROIC(Return on Invested Capital) of 31.8%.
- Apple Inc. has an attractive ROE(return on equity) of 43.8%.
Is Apple a Stock to Sell?
- No significant bearish trends noted in growth and profitability from income statement analysis.
- AAPL stock is trading at a Price to book ratio (PB ratio) multiple of 5.5x against the industry average (Computer-Mini) of 2.1.
- AAPL stock is trading at a price to sales ratio (PS ratio) of 2.9x against the industry average (Computer-Mini) of 2.3.
AAPL Stock vs. Index
AAPL Revenue/Profit performance
AAPL PE ratio vs. PS ratio
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.