10Y annualized return is
excellent
at 21.0% per year
AAPL has met or exceeded earnings expectations in
most
recent quarters (9/10)
Strong Demand Indicated by Price Metrics
Impressive Profit Margins
Manageable Debt Levels
Strong Revenue Growth
Record Installed Base
High Gross Margins
Expansion of Apple Intelligence
Emerging Market Growth
High Valuation Ratios Indicate Potential Overvaluation
Concerns Over Return on Equity
Liquidity Concerns
Challenges in China
Foreign Exchange Headwinds
Overall, Apple demonstrates strong business quality through record revenues and high customer loyalty, but faces challenges in specific markets like China and potential foreign exchange headwinds. The future prospects are bolstered by innovation in AI and growth in emerging markets, although external economic factors may pose risks.
Analysis Date: January 30, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Apple Inc. is a technology company that creates popular gadgets and services for everyday people. They make smartphones called iPhones, personal computers known as Macs, and tablets called iPads. Apple also offers smart accessories like AirPods and the Apple Watch. Besides products, they provide services like Apple Music for listening to songs, Apple TV+ for watching shows, and the App Store where you can download apps and games.
Streams of revenue
Estimations for reference only
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
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Apple Inc. (NASDAQ: AAPL) has been among Jim Cramer's favorite stocks.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$245.45
Current Market Price: $187.64
IV/P Ratio: 1.31x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
24.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for AAPL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (29.55)
P/B ratio ≤ 1.5 (42.56)
Current ratio ≥ 2.0 (0.92x)
Long-term debt < Net current assets (-7.55x)
Margin of safety (24.0%)
AAPL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
145.35%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
46.52%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
24.30%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
AAPL demonstrates strong profitability with a gross profit margin of 46.52%, operating profit margin of 31.76%, and net profit margin of 24.30%. These metrics indicate efficient management and product pricing.
The Return on Equity (ROE) of 145.35% is exceptionally high, which can be misleading if driven by excessive debt rather than operational efficiency.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.45x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
0.92x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
AAPL's Debt-to-Equity ratio of 1.45 indicates that while the company uses leverage, it is within a range that can be managed effectively given its profitability.
With a Current Ratio of 0.92 and a Quick Ratio of 0.88, AAPL may face liquidity challenges, indicating it might struggle to cover short-term liabilities without selling inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Apple reported record revenue of $124.3 billion for the December quarter, marking a 4% year-over-year increase. This growth was driven by a robust performance across multiple regions, including all-time revenue records in the Americas, Europe, and emerging markets.
The company reached an all-time high of over 2.35 billion active devices, indicating strong customer loyalty and satisfaction.
Apple achieved a gross margin of 46.9%, demonstrating strong operational efficiency and favorable product mix.
Apple's revenue in Greater China declined by 11% year-over-year, driven partly by channel inventory changes and increased competition from domestic brands.
The launch of Apple Intelligence features is expected to drive future iPhone demand, especially in markets where it has been rolled out. Early indications show stronger performance in these markets.
The company is seeing robust growth in emerging markets, with a particular focus on India, which set a record for December quarter revenue.
Apple anticipates a negative impact on revenue due to foreign exchange fluctuations, which may impact growth in the upcoming quarter.