Apple Stock Analysis, Valuation (NASDAQ:AAPL)

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$188.15 $0.21 (0.11%) AAPL stock closing price May 24, 2018 (Closing)
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Apple
Updated on : May 24, 2018
previous close
AAPL 188.2 (0%)
NASDAQ 7424.4 (0%)
Closing Price On: May 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Mini
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
7.9%
Operating Profit
Operating Margin:
26.7%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
121.84B
Debt/Equity Ratio:
 0.96
Compared to the industry
Cash Flow
Operating cash flow:
$15.13B
Net Income:
$13.82B
Dividend Yield
AAPL dividend yield:
1.34%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AAPL PS :
3.8
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
24.3%
Return on Equity:
39.9%
Free Cash Flow Margin:
17.9%
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Apple Stock Analysis

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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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Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Apple Inc. Stock Rating 3.9/5

Should you buy AAPL stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 7.9%.
  • Apple's average operating margin of 26.7% was exceptional.
  • LTM Net margins were good at 21.5% for Apple.
  • AAPL stock is trading at an earnings multiple of 18.2 which is better than the industry average of 24.7.
  • Apple's return on invested capital of 24.3% is good.
  • The LTM ROE of 39.9% for Apple is attractive.
  • The company has a healthy free cash flow margin of 17.9%.

Should you sell AAPL stock?

  • With a debt/equity ratio of  0.96, Apple is highly leveraged in comparison to Computer and Technology peers.

Comments on this video and Apple stock

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