Apple logged a -2.8% change during today's morning session, and is now trading at a price of $216.32 per share.
Apple returned gains of 20.8% last year, with its stock price reaching a high of $237.23 and a low of $164.08. Over the same period, the stock underperformed the S&P 500 index by -6.0%. The company's 50-day average price was $222.89. Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Based in Cupertino, CA, the Large-Cap Technology company has 161,000 full time employees. Apple has offered a 0.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 36.0%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $265,595 | $260,174 | $274,515 | $365,817 | $394,328 | $383,285 |
| Gross Margins | 38% | 38% | 38% | 42% | 43% | 44% |
| Net Margins | 22% | 21% | 21% | 26% | 25% | 25% |
| Net Income (M) | $59,531 | $55,256 | $57,411 | $94,680 | $99,803 | $96,995 |
| Net Interest Expense (M) | $3,240 | $3,576 | $2,873 | $2,645 | $2,931 | $3,933 |
| Depreciation & Amort. (M) | $10,903 | $12,547 | $11,056 | $11,284 | $11,104 | $11,519 |
| Diluted Shares (M) | 19,093 | 17,818 | 17,114 | 16,519 | 15,956 | 15,577 |
| Earnings Per Share | $3.12 | $3.1 | $3.35 | $5.73 | $6.25 | $6.23 |
| EPS Growth | n/a | -0.64% | 8.06% | 71.04% | 9.08% | -0.32% |
| Avg. Price | $45.18 | $50.55 | $93.64 | $139.39 | $158.02 | $216.32 |
| P/E Ratio | 14.39 | 16.25 | 27.7 | 24.16 | 25.2 | 34.67 |
| Free Cash Flow (M) | $64,121 | $58,896 | $73,365 | $92,953 | $111,443 | $99,584 |
| CAPEX (M) | $13,313 | $10,495 | $7,309 | $11,085 | $10,708 | $10,959 |
| Current Ratio | 1.3 | 1.6 | 1.16 | 1.04 | 0.94 | 1.07 |
Apple has generally positive cash flows and growing revenues and a flat capital expenditure trend. Additionally, the company's financial statements display wider gross margins than its peer group and a strong EPS growth trend. Furthermore, Apple has just enough current assets to cover current liabilities, as shown by its current ratio of 1.07.
Apple's Valuation Is in Line With Its Sector Averages:
Apple has a trailing twelve month P/E ratio of 33.9, compared to an average of 31.58 for the Technology sector. Based on its EPS guidance of $7.48, the company has a forward P/E ratio of 29.8. The 13.3% compound average growth rate of Apple's historical and projected earnings per share yields a PEG ratio of 2.55. This suggests that these shares are overvalued. Furthermore, Apple is likely overvalued compared to the book value of its equity, since its P/B ratio of 49.37 is higher than the sector average of 4.11. The company's shares are currently trading 737.8% below 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.
There's an Analyst Consensus of Some Upside Potential for Apple:
The 40 analysts following Apple have set target prices ranging from $183.86 to $300.0 per share, for an average of $240.58 with a buy rating. The company is trading -10.1% 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 0.9% of the company's shares are sold short. Institutions own 60.9% of the company's shares, and the insider ownership rate stands at 2.7%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $286,617,569,209.
