Apple Inc. (AAPL) Stock Analysis and Metrics

Sector: Technology Industry: Consumer Electronics CIK: 0000320193

Market Cap 4,111.64 Bn

P/B 46.62

P/E 34.91

P/S 9.44

ROIC (Qtr) 66.33

Div Yield % 0.37

Rev 1y % (Qtr) 15.65

Total Debt (Qtr) 90.51 Bn

Debt/Equity (Qtr) 1.03

About

Apple Inc., popularly known as Apple, is a multinational technology company that engages in the design, manufacturing, and marketing of a diverse range of products, services, and digital content. The company's offerings cater to various markets, including consumers, small and mid-sized businesses, education, enterprise, and government sectors. With a ticker symbol of AAPL, Apple is a key player in the technology industry, operating in numerous countries and regions worldwide. Apple's main business activities are focused on the consumer, small and...

Apple Inc., popularly known as Apple, is a multinational technology company that engages in the design, manufacturing, and marketing of a diverse range of products, services, and digital content. The company's offerings cater to various markets, including consumers, small and mid-sized businesses, education, enterprise, and government sectors. With a ticker symbol of AAPL, Apple is a key player in the technology industry, operating in numerous countries and regions worldwide.

Apple's main business activities are focused on the consumer, small and mid-sized business, education, enterprise, and government markets. The company generates revenue through the sale of its products and services, including the iPhone, Mac, iPad, Apple Watch, Apple TV, and HomePod, as well as its cloud services, digital content, and payment services. Apple's primary products include the iPhone, which is its line of smartphones based on its iOS operating system; Mac, which is its line of personal computers based on its macOS operating system; and iPad, which is its line of multipurpose tablets based on its iPadOS operating system.

The iPhone is one of Apple's most popular and profitable products, with a wide range of models available, including the iPhone 15 Pro, iPhone 15, iPhone 14, iPhone 13, and iPhone SE. This highly competitive market sees Apple contending with other companies offering similar products, such as Samsung, Google, and OnePlus. The iPhone's success hinges on its continuous flow of competitive technologies, products, and services to the marketplace.

The Mac is Apple's line of personal computers, which includes laptops such as the MacBook Air and MacBook Pro, as well as desktops such as the iMac, Mac mini, Mac Studio, and Mac Pro. The Mac has gained popularity among consumers and businesses due to its user-friendly interface, security, and high-performance capabilities.

The iPad is Apple's line of multipurpose tablets, which includes the iPad Pro, iPad Air, iPad, and iPad mini. The iPad's portability, ease of use, and versatility have made it a popular choice among consumers and businesses.

Apple's wearables, home, and accessories segment includes its smartwatches, wireless headphones, and other accessories. The Apple Watch Ultra, Apple Watch Series 9, and Apple Watch SE are popular among consumers seeking a device that can track their fitness and health metrics. The AirPods, AirPods Pro, and AirPods Max have gained popularity among consumers who desire a convenient and portable listening solution.

Apple's services segment includes advertising, AppleCare, cloud services, digital content, and payment services. Apple's advertising services include third-party licensing arrangements and its own advertising platforms. AppleCare offers fee-based service and support products, providing priority access to Apple technical support, access to the global Apple authorized service network, and additional coverage for instances of accidental damage, theft, or loss.

Apple's cloud services, such as iCloud, iMessage, and FaceTime, store and keep customers' content up-to-date and available across multiple devices. The company's platforms, including the App Store, allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. Furthermore, digital content is offered through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+.

Apple's payment services include Apple Card, a co-branded credit card, and Apple Pay, a cashless payment service. These payment services enable users to make purchases online and in-store using their Apple devices.

Apple's markets for its products and services are highly competitive, with companies such as Samsung, Google, Amazon, and Microsoft offering similar products and services. The company's success depends heavily on its ability to ensure a continual and timely flow of competitive technologies, products, and services to the marketplace. Apple invests heavily in research and development, focusing on areas such as artificial intelligence, machine learning, and augmented reality, which are expected to play a significant role in shaping the future of technology.

Apple holds a broad collection of intellectual property rights relating to certain aspects of its hardware devices, accessories, software, and services. The company primarily relies on the innovative skills, technical competence, and marketing abilities of its personnel to protect its intellectual property rights. Apple believes that its talented, motivated, and dedicated team is its most valuable asset and works to create an inclusive, safe, and supportive environment for all team members, offering a wide range of benefits and tools to support their growth and development.

Price action

Investment thesis

Bull case

Strong operating cash flow of 135.47B provides robust 1.50x coverage of total debt 90.51B, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 45.32B provide 3.28x coverage of short-term debt 13.82B, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 379.30B provides 4.19x coverage of total debt 90.51B, indicating robust asset backing and low credit risk.
Operating cash flow of 135.47B provides strong 10.29x coverage of stock compensation 13.17B, indicating sustainable incentive practices.
Robust free cash flow of 123.32B exceeds capital expenditure of 12.15B by 10.15x, indicating strong organic growth funding capability.

Bear case

Operating cash flow of 135.47B provides thin coverage of dividend payments of (15.49B) with a -8.75 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Investment activities of 517M provide weak support for R&D spending of 37.17B, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
High receivables of 70.32B relative to inventory of 5.88B (11.97 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
Free cash flow of 123.32B represents just -16.22x of debt issuance (7.60B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
High financing cash flow of (120.97B) relative to working capital of (4.26B), which is 28.38x suggests concerning dependence on external funding for operational needs.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Consumer Electronics

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	AAPL	Apple Inc.	4,111.64 Bn	34.91	9.44	90.51 Bn
2	SONY	Sony Group Corp	131.70 Bn	16.82	1.54	13.01 Bn
3	LPL	LG Display Co., Ltd.	1.99 Bn	-15.28	0.11	9.69 Bn
4	SONO	Sonos Inc	1.82 Bn	-103.73	1.27	0.05 Bn
5	ZEPP	Zepp Health Corp	0.26 Bn	-3.99	1.13	0.21 Bn
6	TBCH	Turtle Beach Corp	0.24 Bn	12.90	0.68	0.09 Bn
7	VUZI	Vuzix Corp	0.19 Bn	-5.17	36.33	0.00 Bn
8	GPRO	GoPro, Inc.	0.17 Bn	-1.39	0.26	0.20 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	11.01	1.42
EV to Cash from Ops. EV/CFO	30.81	-17.93
EV to Debt EV to Debt	46.12	120.81
EV to EBIT EV/EBIT	29.57	9.52
EV to EBITDA EV/EBITDA	27.30	2.48
EV to Free Cash Flow [EV/FCF] EV/FCF	33.85	70.95
EV to Market Cap EV to Market Cap	1.02	3.93
EV to Revenue EV/Rev	9.58	2.83
Price to Book Value [P/B] P/B	46.62	3.98
Price to Earnings [P/E] P/E	34.91	-5.47

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	7.61	-85.07
Dividend Payout Ratio % Div Payout % (Qtr)	13.00	1.02
Dividend per Basic Share Div per Share (Qtr)	1.03	0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	12.32	0.69
Interest Coverage Int. cover (Qtr)	0.00	-37.55

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-21.54	-25,918.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	49.57	26.58
Dividend Growth (1y) % Div 1y % (Qtr)	4.04	-3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	22.49	-457.87
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	11.32	-128.04
EBIT Growth (1y) % EBIT 1y % (Qtr)	12.25	581.09
EBT Growth (1y) % EBT 1y % (Qtr)	12.25	45.62
EPS Growth (1y) % EPS 1y % (Qtr)	25.32	-5.37
FCF Growth (1y) % FCF 1y % (Qtr)	25.46	-2,156.34
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	11.98	59.92

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	1.15	0.76
Cash Payout Ratio Cash Payout (Qtr)	0.10	0.01
Cash Ratio Cash Ratio (Qtr)	0.28	0.84
Current Ratio Curr Ratio (Qtr)	0.97	3.28
Debt to Equity Ratio Debt/Equity (Qtr)	1.03	3.72
Interest Cover Ratio Int Coverage (Qtr)	0.00	-37.55
Times Interest Earned Times Interest Earned (Qtr)	0.00	-37.55

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	35.10	-156.12
EBIT Margin % EBIT Margin % (Qtr)	32.40	393.79
EBT Margin % EBT Margin % (Qtr)	32.40	-168.23
Gross Margin % Gross Margin % (Qtr)	47.30	19.30
Net Profit Margin % Net Margin % (Qtr)	27.00	-169.59

Research Tools

Apple Inc. (NASDAQ: AAPL)