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Apple Inc AAPL

Morningstar Rating
$224.60 +0.70 (0.31%)
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Company Report

Apple’s Tightly Integrated Hardware, Software, and Services Drive Profitable Growth and a Wide Moat

We believe Apple has cemented a long-term position atop the consumer electronics industry with a focus on a premium ecosystem of tightly integrated hardware, software, and services. We see the flagship iPhone as the linchpin of this ecosystem, from which Apple derives pricing power, switching costs, and a network effect. In our view, every other Apple device and service sees its greatest value from further locking in customers to this walled garden. This approach earns the firm a wide economic moat rating.

Price vs Fair Value

AAPL is trading at a 180% premium.
Price
$223.96
Fair Value
$354.00
Uncertainty
Medium
1-Star Price
$369.70
5-Star Price
$476.00
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
$223.90
Day Range
$222.69225.13
52-Week Range
$164.08237.19
Bid/Ask
$224.51 / $224.55
Market Cap
$3.44 Tril
Volume/Avg
7.8 Mil / 67.7 Mil

Key Statistics

Price/Earnings (Normalized)
34.83
Price/Sales
9.17
Dividend Yield (Trailing)
0.43%
Dividend Yield (Forward)
0.45%
Total Yield
2.82%

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
GOOGL
Price/Earnings (Normalized)
34.8328.7027.75
Price/Book Value
46.301.567.68
Price/Sales
9.171.867.22
Price/Cash Flow
29.039.5120.02
Price/Earnings
AAPL
005930
GOOGL

Financial Strength

Metric
AAPL
005930
GOOGL
Quick Ratio
0.871.781.98
Current Ratio
1.042.552.15
Interest Coverage
15.09285.78
Quick Ratio
AAPL
005930
GOOGL

Profitability

Metric
AAPL
005930
GOOGL
Return on Assets (Normalized)
32.12%4.72%25.77%
Return on Equity (Normalized)
165.09%6.10%36.64%
Return on Invested Capital (Normalized)
62.77%4.99%32.10%
Return on Assets
AAPL
005930
GOOGL
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Consumer Electronics Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Sony Group Corp
SNEJF
Lpvj$111.9 Bil
Sony Group Corp ADR
SONY
HzbblsmjVzpg$111.9 Bil
Xiaomi Corp Class B
XIACF
Mjvc$54.9 Bil
Xiaomi Corp ADR
XIACY
Vgwjn$54.9 Bil
Panasonic Holdings Corp ADR - Unsponsored
PCRHY
Zjtv$18.9 Bil
Panasonic Holdings Corp
PCRFF
Kmsq$18.9 Bil
LG Display Co Ltd ADR
LPL
Npzh$4.5 Bil
Sharp Corp ADR
SHCAY
Hfp$3.9 Bil
Sharp Corp
SHCAF
Zgtfl$3.9 Bil

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