Apple shares moved 14.0% over the last 52 weeks, with a high of $198.23 and a low of $124.17. During this time, the stock outperformed the S&P 500 index by 4.0%. As of April 2023, the company's 50-day average price is $176.82. Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The large-cap Technology company has 164,000 full time employees and is based in Cupertino, CA. Apple has returned a 0.5% dividend yield over the last 12 months.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $265,595 | $260,174 | $274,515 | $365,817 | $394,328 | $390,724 |
| Gross Margins | 38% | 38% | 38% | 42% | 43% | 44% |
| Operating Margins | 27.0% | 25.0% | 24.0% | 30.0% | 30.0% | 30.0% |
| Net Margins | 22.0% | 21.0% | 21.0% | 26.0% | 25.0% | 25.0% |
| Net Income (MM) | $59,531 | $55,256 | $57,411 | $94,680 | $99,803 | $99,392 |
| Net Interest Expense (MM) | $3,240 | $3,576 | $2,873 | $2,645 | $2,931 | $3,449 |
| Depreciation & Amort. (MM) | $10,903 | $12,547 | $11,056 | $11,284 | $11,104 | $11,731 |
| Earnings Per Share | $2.98 | $2.97 | $3.28 | $5.61 | $6.11 | $6.17 |
| EPS Growth | n/a | -0.34% | 10.44% | 71.04% | 8.91% | 0.98% |
| Diluted Shares (MM) | 20,000 | 18,596 | 17,528 | 16,865 | 16,326 | 15,282 |
| Free Cash Flow (MM) | $64,121 | $58,896 | $73,365 | $92,953 | $111,443 | $100,987 |
| Capital Expenditures (MM) | $13,313 | $10,495 | $7,309 | $11,085 | $10,708 | $12,085 |
| Net Current Assets (MM) | -$114,999 | -$87,856 | -$133,724 | -$156,105 | -$161,243 | -$152,105 |
| Long Term Debt (MM) | $28,296 | $36,682 | $42,941 | $51,573 | $99,627 | $98,071 |
| Net Debt / EBITDA | 0.34 | 0.37 | 0.48 | 0.35 | 0.69 | 0.62 |
Apple's Valuation Is in Line With Its Sector Averages:
Compared to the Technology sector's average of 27.16, Apple has a trailing twelve month P/E ratio of 29.7 and, according to its EPS guidance of $6.19, an expected P/E ratio of 28.6. Apple's PEG ratio is 3.22 based on the 9.2% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Additionally, Apple seems overvalued in terms of its book value, since its P/B ratio is 44.33 compared to its sector average of 6.23. As of the date of publication, the company's shares are trading 627.3% above their Graham number of $23.48. Apple's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards our conclusion that the stock is fairly valued.
Analysts Give Apple an Average Rating of Buy:
37 analysts are following Apple and have set target prices ranging from $141.0 to $226.34 per share. On average, they have given the company a rating of buy. At the current price of $176.82, AAPL is trading -5.8% away from its average analyst target price of $187.73 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 0.6% of the company's shares are tied to short positions. Institutions own 61.3% of Apple's shares, while the insider ownership rate stands at 0.07%. which is a small amount of insider investors. The company's biggest shareholder is Vanguard Group Inc with a 8% stake in the company worth $222,630,891,739.
