Apple Inc(AAPL)

Apple Inc operates in the undefined industry with a strong gross margin of 46.9%.

• The company has a stable revenue stream.
• Gross margins of 46.9% are above industry average.
• The business is capital intensive with capex at 10.0% of revenue.

Management led by undefined has demonstrated strong capital allocation skills.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• Insiders have mixed buying/selling activity in the past year.
• Management has improved return on equity over the past 5 years.

Apple Inc demonstrates strong competitive advantages in its industry.

• Operating margins of 32.0% are significantly above industry peers.
• The company has expanded its operating margins over the past 5 years.
• Apple Inc exhibits pricing power based on its gross margin profile.

The undefined industry is growing at approximately 3.5% annually.

• Industry growth rate of 3.5% is moderate.
• The competitive landscape includes 12 major peers, indicating significant competition.
• Barriers to entry appear high based on industry operating margins.

Apple Inc faces limited risks in its business operations.

• Debt-to-equity ratio of 0.50 is moderate.
• The company has diversified revenue streams.
• Earnings stability is strong with limited volatility in the past 5 years.

Apple Inc maintains a adequate balance sheet with moderate leverage.

• Current ratio of 0.89 indicates adequate liquidity.
• Debt-to-equity ratio of 0.50 is moderate.
• The company has 1 billion in cash and equivalents.

Apple Inc is a capital-intensive business requiring 10.0% of revenue for capital expenditures.

• Capital expenditures represent 10.0% of revenue.
• Maintenance capex is low relative to free cash flow.
• The company efficiently utilizes its asset base.

Management allocates capital with strong efficiency, generating a 15.0% return on invested capital.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• The company has reduced shares outstanding by 2.0% in the past year.
• Dividend has grown at 5.0% annually, with a current yield of 0.32%.

Apple Inc generates moderate profitability with net margins of 15.0%.

• Net profit margin of 15.0% is adequate.
• Free cash flow conversion is moderate at 80% of net income.
• Gross margins have been consistently above 43.2% over the past 5 years.

Apple Inc has grown revenue at 11.1% and earnings at 11.1% in its strongest year.

• Revenue growth has ranged from 5.9% to 11.1% over the past 4 years.
• EPS growth has ranged from 5.9% to 11.1% over the past 4 years.
• Growth has been consistent during this period.

Stock-based compensation represents 5.0% of revenue and is decreasing over time.

• Stock-based compensation is high at 5.0% of revenue.
• Share dilution is minimal at 2.0% per year.
• The trend in stock-based compensation is decreasing over the past 5 years.

The outlook for Apple Inc is mixed based on analyst ratings and industry trends.

• Analysts are generally positive with 23 buys, 16 holds, and 2 sells.
• The industry is expected to grow at 3.5% annually.
• The average analyst price target of $150.00 is below the current price.

Apple Inc trades at a P/E of 35.8x and EV/EBITDA of 0.0x.

• P/E ratio of 35.8x is elevated relative to the market.
• EV/EBITDA of 0.0x is attractive compared to peers.
• The stock is trading above the average analyst price target of $150.00.

Owner's earnings (EPS growth + dividend yield) is approximately 11.4%.

• Free cash flow is positive at $1.20 billion.
• Dividend yield is 0.32%, which is modest.
• EPS has grown at 11.1% in the most recent year.

Apple Inc has created shareholder value through moderate returns on capital and solid growth.

• Return on Invested Capital (ROIC) of 15.0% is adequate.
• Revenue growth of 11.1% indicates strong business expansion.
• Capital allocation appears effective with reinvestment at appropriate levels.