Apple Inc.
Apple Inc. Fundamental Analysis
Apple Inc. (AAPL) shows moderate financial fundamentals with a PE ratio of 33.40, profit margin of 27.04%, and ROE of 1.60%. The company generates $434.1B in annual revenue with moderate year-over-year growth of 6.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AAPL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAAPL demonstrates superior asset utilization.
Valuation Score
WeakAAPL trades at a premium to fair value.
Growth Score
ExcellentAAPL delivers strong and consistent growth momentum.
Financial Health Score
WeakAAPL carries high financial risk with limited liquidity.
Profitability Score
ExcellentAAPL achieves industry-leading margins.
Key Financial Metrics
Is AAPL Expensive or Cheap?
P/E Ratio
AAPL trades at 33.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AAPL's PEG of 5.68 indicates potential overvaluation.
Price to Book
The market values Apple Inc. at 44.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.26 times EBITDA. This signals the market has high growth expectations.
How Well Does AAPL Make Money?
Net Profit Margin
For every $100 in sales, Apple Inc. keeps $27.04 as profit after all expenses.
Operating Margin
Core operations generate 32.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.60 in profit for every $100 of shareholder equity.
ROA
Apple Inc. generates $31.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apple Inc. generates strong operating cash flow of $135.01B, reflecting robust business health.
Free Cash Flow
Apple Inc. generates strong free cash flow of $122.90B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.36 in free cash annually.
FCF Yield
AAPL converts 3.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
44.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.60
vs 25 benchmark
ROA
Return on assets percentage
0.31
vs 25 benchmark
ROCE
Return on capital employed
0.65
vs 25 benchmark
How AAPL Stacks Against Its Sector Peers
| Metric | AAPL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.40 | 34.79 | Neutral |
| ROE | 159.94% | 1185.00% | Weak |
| Net Margin | 27.04% | -133093.00% (disorted) | Strong |
| Debt/Equity | 1.03 | 0.43 | Weak (High Leverage) |
| Current Ratio | 0.97 | 4.90 | Weak Liquidity |
| ROA | 31.05% | -324805.00% (disorted) | Strong |
AAPL outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Apple Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
126.47%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
60.41%
Industry Style: Growth, Innovation, High Beta
High Growth