Apple Stock Analysis (NASDAQ:AAPL)

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$109.95 $0.84 (0.77%) AAPL stock closing price Dec 06, 2016 (Closing)
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Apple
Updated on : Dec 06, 2016
previous close
AAPL 110 (0%)
NASDAQ 5333 (0%)
Closing Price On: Dec 06, 2016
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Mini
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
21.1%
Compared to the industry
Operating Profit
Operating Margin:
27.8%
Sector Average:
4.6%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
87.03B
Debt/Equity Ratio:
 0.68
Compared to the industry
Cash Flow
Operating cash flow:
$16.13B
Net Income:
$9.01B
Dividend Yield
AAPL dividend yield:
1.98%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AAPL PS :
2.7
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
24.3%
Return on Equity:
36.1%
Free Cash Flow Margin:
25.9%
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Apple Analysis Video

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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.

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Apple Inc. Stock Rating (4.2/5)

Should you buy AAPL stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 21.1%.
  • The TTM operating margin was good at 27.8% for Apple.
  • Net margins stood at a healthy 21.2% (average) for Apple in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.8 times the net income.
  • AAPL stock is trading at an earnings multiple of 13.3 which is better than the industry average of 24.8.
  • Apple has an attractive ROIC (Return on Invested Capital) of 24.3%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Apple at 36.1%.
  • The company has a good Free Cash Flow (FCF) margin of 25.9%.

Should you sell AAPL stock?

  • Apple has a debt/equity ratio of  0.68, which is worse than the average in the Computer and Technology sector.

Comments on this video and Apple stock

user profile picture
SmartStocks on Apple stock analysis ($108.43)
bullish
I saw AAPL on at http://smartdividendstocks.com/income-po... on the income portfolio list, good quality are on that list!
2 reply
ahlai on Apple stock analysis ($108.43)
neutral
Can Apple touch 116.00 by end Nov
reply
user profile picture
Francis Jacob Christian on Apple stock analysis ($116.3)
neutral
Have a human tell me this...
3 reply
mvogel@lmcollisionservices.com on Apple stock analysis ($94.56)
neutral
I would not invest in Apple because what is the next new thing? Company has rely on single product innovations but everything is changing... look what happen to HP, IBM, ETC... Shares will stay the same or go down
4 2 reply
user profile picture
tedmcgovern on Apple stock analysis ($109.81)
bullish
Apple has a billion devices in the world. Each one is wired to app stores and i tunes. They have so many avenues to make money, and they are knocked for maintaining at such a high level. I personally believe it is severely undervalued.
6 2 reply
HarryG on Apple stock analysis ($112.98)
bullish
bullish
5 1 reply
user profile picture
Jimmy Witts on Apple stock analysis ($98.38)
bearish
Short and Medium Term = Neutral
Long Term = Bearish
4 5 reply
user profile picture
neena@amigobulls on Apple stock analysis ($531.7)
bearish
Why apple is no longer a growth company. Phones and tablets getting commoditized and Apple is not able to find a new breakthrough product. They must be missing Steve Jobs!
http://finance.yahoo.com/blogs/daily-tic...
5 9 reply
user profile picture
steve.hane on Apple stock analysis ($102.13)
bullish
What do you think of Apple now that it's back at an all time high?
6

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.

References:

History of Apple, Investopedia

Apple stock returns, CNBC

Best Tech Stocks, Pingdom