Now trading at a price of $179.34, Apple has moved 1.0% so far today.
Apple returned gains of 14.0% last year, with its stock price reaching a high of $198.23 and a low of $124.17. Over the same period, the stock outperformed the S&P 500 index by 3.0%. More recently, the company's 50-day average price was $186.51. 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.
The Business Has Operating Margins Consistently Higher Than the 21.41% industry Average:
| 2017-11-03 | 2018-11-05 | 2019-10-31 | 2020-10-30 | 2021-10-29 | 2022-10-28 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $229,234 | $265,595 | $260,174 | $274,515 | $365,817 | $394,328 |
| Gross Margins | 38.0% | 38.0% | 38.0% | 38.0% | 42.0% | 43.0% |
| Operating Margins | 27% | 27% | 25% | 24% | 30% | 30% |
| Net Margins | 21.0% | 22.0% | 21.0% | 21.0% | 26.0% | 25.0% |
| Net Income (MM) | $48,351 | $59,531 | $55,256 | $57,411 | $94,680 | $99,803 |
| Earnings Per Share | $2.3 | $2.98 | $2.97 | $3.28 | $5.73 | $6.11 |
| EPS Growth | n/a | 29.57% | -0.34% | 10.44% | 74.7% | 6.63% |
| Diluted Shares (MM) | 21,007 | 20,000 | 18,596 | 17,528 | 16,519 | 16,326 |
| Free Cash Flow (MM) | $76,676 | $90,747 | $79,886 | $87,983 | $115,123 | $132,859 |
| Capital Expenditures (MM) | -$12,451 | -$13,313 | -$10,495 | -$7,309 | -$11,085 | -$10,708 |
| Net Current Assets (MM) | -$112,627 | -$127,239 | -$85,209 | -$114,836 | -$153,076 | -$166,678 |
| Long Term Debt (MM) | $97,207 | $93,735 | $91,807 | $98,667 | $118,719 | $110,087 |
| Net Debt / EBITDA | 0.58 | 0.59 | 0.1 | 0.28 | 0.52 | 0.55 |
Apple has strong margins with a stable trend and a pattern of improving cash flows. Additionally, the company's financial statements display low leverage and a strong EPS growth trend. However, the firm has slimmer gross margins than its peers. Finally, we note that Apple has weak revenue growth and a flat capital expenditure trend.
Apple's Valuation Is in Line With Its Sector Averages:
Apple has a trailing twelve month P/E ratio of 31.2, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $6.17, the company has a forward P/E ratio of 30.2. Apple's PEG ratio is 3.15 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 46.56 is higher than the sector average of 6.23. The company's shares are currently trading 768.0% 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 Average Rating of Buy:
The 40 analysts following Apple have set target prices ranging from $138.94 to $223.79 per share, for an average of $187.13 with a buy rating. As of April 2023, the company is trading -0.3% 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 0.6% of the company's shares are sold short. Institutions own 61.3% 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 Vanguard Group Inc, whose 8% stake in the company is worth $233,796,986,976.
