NasdaqGS:AAPL

Stock Analysis Report

Executive Summary

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Apple's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.9%

NasdaqGS:AAPL

4.7%

US Tech

2.9%

US Market


1 Year Return

-1.1%

NasdaqGS:AAPL

-2.8%

US Tech

0.2%

US Market

AAPL outperformed the Tech industry which returned -3.8% over the past year.

AAPL matched the United States of America Market (-0.7%) over the past year.


Share holder returns

AAPLIndustryMarket
7 Day4.9%4.7%2.9%
30 Day2.6%1.6%-2.3%
90 Day18.4%16.4%3.1%
1 Year0.4%-1.1%-1.2%-2.8%2.4%0.2%
3 Year106.5%96.8%95.1%79.7%41.7%32.4%
5 Year126.9%108.2%101.8%81.2%55.1%37.9%

Price Volatility Vs. Market

How volatile is Apple's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apple undervalued based on future cash flows and its price relative to the stock market?

17.93x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Apple's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Apple's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Apple is good value based on earnings compared to the US Tech industry average.

Apple is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Apple is poor value based on expected growth next year.


Price Based on Value of Assets

Apple is overvalued based on assets compared to the US Tech industry average.


Next Steps

Future Growth

How is Apple expected to perform in the next 1 to 3 years based on estimates from 40 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Apple's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Apple's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Apple's revenue growth is positive but not above the United States of America market average.

Apple's earnings growth is positive but not above the United States of America market average.

Apple's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Apple is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Apple performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Apple's year on year earnings growth rate has been positive over the past 5 years.

Apple's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Apple's 1-year earnings growth is negative, it can't be compared to the US Tech industry average.


Return on Equity

Whilst Apple made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Apple used its assets more efficiently than the US Tech industry average last year based on Return on Assets.


Return on Capital Employed

Apple has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Apple's financial position?


Financial Position Analysis

Apple is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Apple's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Apple's level of debt (112.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.8% vs 112.4% today).

Debt is well covered by operating cash flow (63.6%, greater than 20% of total debt).

Apple earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Apple's current dividend yield, its reliability and sustainability?

1.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Apple's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Apple's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Apple has been paying a dividend for less than 10 years.

Dividend payments have increased, but Apple only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).


Next Steps

Management

What is the CEO of Apple's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Tim Cook (58yo)

8.0yrs

Tenure

US$15,682,219

Compensation

Mr. Timothy D. Cook, also known as Tim, has been the Chief Executive Officer of Apple Inc. since August 24, 2011. Mr. Cook served as the Chief Operating Officer of Apple Inc., from October 14, 2005 to Augu ...


CEO Compensation Analysis

Tim's remuneration is higher than average for companies of similar size in United States of America.

Tim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

The tenure for the Apple management team is about average.


Board Age and Tenure

7.9yrs

Average Tenure

68.5yo

Average Age

The tenure for the Apple board of directors is about average.


Insider Trading

Apple individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$951,63505 Aug 19
Chris Kondo
EntityIndividual
Role
Chief Accounting Officer
Senior Director of Corporate Accounting
Shares4,376
Max PriceUS$217.47

Ownership Breakdown


Management Team

  • Tim Cook (58yo)

    CEO & Director

    • Tenure: 8.0yrs
    • Compensation: US$15.68m
  • Phil Schiller (59yo)

    Senior Vice President of Worldwide Marketing

    • Tenure: 17.5yrs
    • Compensation: US$11.68m
  • Kate Adams (55yo)

    Senior VP

    • Tenure: 1.7yrs
    • Compensation: US$26.82m
  • Luca Maestri (55yo)

    CFO & Senior VP

    • Tenure: 5.3yrs
    • Compensation: US$26.51m
  • Jeff Williams (55yo)

    Chief Operating Officer

    • Tenure: 3.7yrs
    • Compensation: US$26.54m
  • Chris Kondo

    Senior Director of Corporate Accounting

    • Tenure: 4.7yrs
  • Nancy Paxton

    Director-Investor Relations

    • Tenure: 0.0yrs
  • Deirdre O’Brien

    Senior Vice President of People & Retail

    • Tenure: 2.1yrs
  • James Wilson

    Chief Technology Officer

    • Tenure: 0.5yrs
  • Adrian Perica

    Vice President of Corporate Development

    • Tenure: 0.6yrs

Board Members

  • Tim Cook (58yo)

    CEO & Director

    • Tenure: 8.0yrs
    • Compensation: US$15.68m
  • Bob Iger (68yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$377.88k
  • Art Levinson (69yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$567.19k
  • Andrea Jung (61yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$403.11k
  • Ron Sugar (70yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$409.46k
  • Al Gore (71yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$358.54k
  • James Bell (70yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$362.67k
  • Sue Wagner (58yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$353.18k

Company Information

Apple Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apple Inc.
  • Ticker: AAPL
  • Exchange: NasdaqGS
  • Founded: 1977
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$960.958b
  • Shares outstanding: 4.52b
  • Website: https://www.apple.com

Number of Employees


Location

  • Apple Inc.
  • One Apple Park Way
  • Cupertino
  • California
  • 95014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAPLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1980
AAPLBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDDec 1980
APCDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1980
0R2VLSE (London Stock Exchange)YesCommon StockGBUSDDec 1980
AAPLSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1980
APCXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1980
AAPL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1980
AAPLBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPDec 1980
AAPLWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1980
AAPLSNSE (Santiago Stock Exchange)YesCommon StockCLUSDDec 1980
AP-UETLX (Eurotlx)YesCommon StockITEURDec 1980
AAPL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/10 COM NPVBRBRLMay 2011
AAPLBASE (Buenos Aires Stock Exchange)CEDEAR(REPR 1/10 SHR)USDARARSAug 2012

Biography

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:32
End of Day Share Price2019/08/21 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.