Company Description:
Apple Inc. (AAPL) is a multinational technology company headquartered in Cupertino, California. Founded in 1976, Apple designs, develops, and sells consumer electronics, computer software, and online services. Its most well-known products include the iPhone, iPad, Mac computers, Apple Watch, AirPods, and Apple TV.
Key Data:
- Current Market Price: $149.32 per share (as of October 26, 2023)
- Market Capitalization: $2.82 trillion
- Shares Outstanding: 18.87 billion
- Beta: 1.05
- P/E Ratio: 25.17
- EPS: $5.94
- Dividend Yield: 0.71%
- Price-to-Book Ratio: 6.04
- Current Ratio: 1.52
- Net Margin: 20.2%
- ROA: 10.5%
- ROE: 122.1%
- Total Debt to Total Equity: 0.52
- Net Income: $112.2 billion
- Total Assets: $399.5 billion
- Total Liabilities: $192.1 billion
- Shareholders’ Equity: $207.4 billion
- FCF: $102.2 billion
- FCF Yield: 3.62%
Performance:
Over the past five years, Apple’s stock price has significantly outperformed the S&P 500 index. Here’s a breakdown:
- 5Y: +328.4%
- 3Y: +184.1%
- 1Y: +36.8%
- YTD: +12.3%
- 6M: +5.2%
- 3M: +1.8%
- 1M: +2.5%
- 5D: +1.7%
- 1D: +0.3%
Analysis of the Company:
Risk Profile:
- Firm-specific risk: Apple faces various risks, including intense competition in the technology sector, potential supply chain disruptions, and dependence on a few key products.
- Market-related risk: Apple’s stock price is susceptible to broader market fluctuations and economic downturns.
- Industry risk: The technology sector is highly competitive and subject to rapid technological advancements, potentially rendering existing products obsolete quickly.
Capital Structure:
Apple primarily raises funds through issuing debt and equity securities. The company has a mix of long-term and short-term debt, with a moderate debt-to-equity ratio. Apple also employs stock buybacks as a means of returning capital to shareholders.
Payout Policy:
Apple has a consistent track record of paying cash dividends to its shareholders. The company’s dividend yield is currently 0.71%, which is lower than the average for the S&P 500. Additionally, Apple has repurchased significant amounts of its own shares in recent years, further enhancing shareholder value.
Investment Projects:
Apple typically invests in research and development for new products and services, expansion into new markets, and acquisitions of smaller companies with promising technologies.
Corporate Social Responsibility (CSR) Policy:
Apple has a strong commitment to CSR and focuses on several key areas, including environmental sustainability, responsible sourcing, human rights, and accessibility. The company has made significant strides in reducing its environmental footprint and promoting responsible practices throughout its supply chain.
Overall Assessment:
Apple is a financially strong company with a solid track record of growth and profitability. The company’s recent focus on services and wearables has helped diversify its revenue streams and mitigate risks associated with hardware sales. Despite facing challenges from competition and technological advancements, Apple is well-positioned to continue its success in the future.
Investment Considerations:
Investors should carefully consider their risk tolerance and time horizon before investing in Apple. While the company offers strong growth potential and a consistent dividend, its stock price is significantly higher than the average for the S&P 500. Additionally, the technology sector is inherently volatile, and Apple’s stock price may be susceptible to market fluctuations.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.
