Apple logged a 0.8% change Friday, and is now trading at a price of $169.68 per share.
Apple returned gains of 7.4% last year, with its stock price reaching a high of $176.15 and a low of $124.17. Over the same period, the stock outperformed the S&P 500 index by 7.0%. More recently, the company's 50-day average price was $157.9. Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Based in Cupertino, CA, the large-cap Technology company has 164,000 full time employees. Apple has offered a 0.5% dividend yield over the last 12 months.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $260,174 | $274,515 | $365,817 | $394,328 |
| Gross Margins | 37.8% | 38.2% | 41.8% | 43.3% |
| Operating Margins | 24.6% | 24.2% | 29.8% | 30.3% |
| Net Margins | 21.24% | 20.91% | 25.88% | 25.31% |
| Net Income(MM) | $55,256 | $57,411 | $94,680 | $99,803 |
| Interest Cost | $1,385,000 | $890,000 | $198,000 | -$106,000 |
| Depreciation & Amort. | -$12,547,000 | -$11,056,000 | -$11,284,000 | -$11,104,000 |
| Earnings Per Share | $2.97 | $3.28 | $5.61 | $5.89 |
| EPS Growth | n/a | 10.44% | 71.04% | 4.99% |
| Diluted Shares (MM) | 18,596 | 17,528 | 16,865 | 15,822 |
| Free Cash Flow (MM) | $58,896 | $73,365 | $92,953 | $111,443 |
| Net Current Assets (MM) | -$85,209 | -$114,836 | -$153,076 | -$166,678 |
| Current Ratio | 1.54 | 1.36 | 1.07 | 0.88 |
| Long Term Debt | $91,807,000 | $98,667,000 | $109,106,000 | $98,959,000 |
| Net Debt / EBITDA | 0.74 | 0.94 | 0.74 | 0.74 |
Apple's Valuation Is in Line With Its Sector Averages:
Apple has a trailing twelve month P/E ratio of 26.8, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $6.59, the company has a forward P/E ratio of 24.0. Apple's PEG ratio is 2.7 on the basis of the 9.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Apple is likely overvalued compared to the book value of its equity, since its P/B ratio of 47.38 is higher than the sector average of 6.23. The company's shares are currently trading 797.1% above their Graham number. Ultimately, Apple's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Apple Has an Analyst Consensus of Some Upside Potential:
The 38 analysts following Apple have set target prices ranging from $116.0 to $205.0 per share, for an average of $170.89 with a buy rating. As of April 2023, the company is trading -7.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Apple has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 61.2% of the company's shares, and the insider ownership rate stands at 0.07%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 8% stake in the company is worth $216,893,541,925.
