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Apple Inc AAPL

Morningstar Rating
$193.88 +4.45 (2.35%)
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Company Report

Apple: We Raise Our Sales Forecast and Raise Our FVE to $160 but Continue to See Shares as Rich

We raise our fair value estimate for wide-moat Apple to $160 per share, from $150, after modest upward revisions to our five-year sales forecast. We also lower our Uncertainty Rating for Apple to Medium, from High, based on higher conviction in the firm’s ability to offset consumer spending cycles with its premium and differentiated approach. We continue to see Apple as a dominant technology ecosystem provider meriting a wide economic moat, and we maintain our Exemplary capital allocation rating based on a strong investment track record that has helped carve the firm’s moat.

Price vs Fair Value

AAPL is trading at a 18% premium.
Price
$189.42
Fair Value
$292.00
Uncertainty
Medium
1-Star Price
$838.00
5-Star Price
$759.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Apple offers an expansive ecosystem of tightly integrated hardware, software, and services, which locks in customers and generates strong profitability.

Bears

Apple is prone to consumer spending and preferences, which creates cyclicality and opens the firm up to disruption.

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News

Trading Information

Previous Close Price
$189.43
Day Range
$190.22194.40
52-Week Range
$124.17198.22
Bid/Ask
$193.87 / $193.89
Market Cap
$3.02 Tril
Volume/Avg
26.9 Mil / 57.1 Mil

Key Statistics

Price/Earnings (Normalized)
30.95
Price/Sales
7.81
Dividend Yield
0.50%
Dividend Yield (Forward)
0.51%
Total Yield
3.13%

Company Profile

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone makes up a majority of the firm sales, and Apple’s other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Sector
Technology
Industry
Consumer Electronics
Stock Style Box
Large Core
Total Number of Employees
161,000

Competitors

Valuation

Metric
AAPL
005930
MSFT
Price/Earnings (Normalized)
30.9510.6335.32
Price/Book Value
47.401.3712.43
Price/Sales
7.811.4612.62
Price/Cash Flow
25.587.4928.47
Price/Earnings
AAPL
005930
MSFT

Financial Strength

Metric
AAPL
005930
MSFT
Quick Ratio
0.841.941.45
Current Ratio
0.992.801.66
Interest Coverage
28.968.1746.91
Quick Ratio
AAPL
005930
MSFT

Profitability

Metric
AAPL
005930
MSFT
Return on Assets (Normalized)
30.90%8.29%21.73%
Return on Equity (Normalized)
181.92%10.89%43.59%
Return on Invested Capital (Normalized)
62.35%9.57%32.22%
Return on Assets
AAPL
005930
MSFT

Consumer Electronics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
SNEJF
Sony Group CorpRykcy$105.0 Bil
SONY
Sony Group Corp ADRPqzkn$105.0 Bil
XIACF
Xiaomi Corp Class BRrnry$48.9 Bil
XIACY
Xiaomi Corp ADRJvj$48.9 Bil
PCRFY
Panasonic Holdings Corp ADRMydkp$23.2 Bil
PCRFF
Panasonic Holdings CorpHvc$23.2 Bil
SHCAY
Sharp Corp ADRScnnv$4.0 Bil
SHCAF
Sharp CorpWcgrf$4.0 Bil
LPL
LG Display Co Ltd ADRHlwt$3.4 Bil