Apple (AAPL) AI Stock Analysis

• Market Cap: $3.01T
• Dividend Yield: 0.52%
• Average Volume (3M): 51.00M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.11
• Revenue Growth: 4.91%
• EPS Growth: -0.36%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 1.65
• Shares Outstanding: 14,935,826,000
• 10 Day Avg. Volume: 52,928,095
• 30 Day Avg. Volume: 51,003,245
• PEG Ratio: 16.23
• Price to Book (P/B): 44.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.38
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 16.40
• Enterprise Value/Ebitda: 5.63
• 1Y Price Target: $226.54
• Price Target Upside: 12.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 29

• Rating: 76 Outperform
• Price Target: $228.00 ▲(13.39%Upside)

Apple's overall stock score is primarily driven by its strong financial performance, buoyed by high profitability and efficient cash flow management. While technical analysis indicates potential near-term weakness, Apple's long-term growth prospects, particularly in services, support its valuation. The recent earnings call reinforces optimism, though macroeconomic challenges remain. Investors should weigh Apple's strategic initiatives against its premium valuation.

Positive Factors

AI Developments

Media articles suggest that AAPL is looking to buy (or partner with) Perplexity AI, which could be positive for shares given Apple is largely viewed as an AI laggard.

Sales Performance

Strong iPhone sell-through in China has been observed for 3 consecutive weeks due to promotions and national subsidies.

Supply Chain

Apple's swift change in iPhone assembly supply chain to India is likely to limit headwinds in relation to gross margins.

Negative Factors

AI Competition

Few AI innovations were announced, most of which trail behind rivals like Google, not enough to address growing competitive pressures.

Product Demand

The launch of the iPhone 17 lineup is expected to be only incremental, leading to a moderation in demand drivers.

Tariffs Impact

Tariffs are expected to drive the company to take price increases, which will limit volume drivers for the upcoming iPhone 17 cycle.

Apple Business Overview & Revenue Model

Company Description

Apple Inc. (AAPL) is a leading global technology company that operates in the consumer electronics, computer software, and online services sectors. Founded in 1976 and headquartered in Cupertino, California, Apple is renowned for its innovative products including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, the iCloud storage service, the Apple Music streaming service, and the App Store, which provides digital content and applications.

How the Company Makes Money

Apple makes money primarily through the sale of its consumer electronics products, with the iPhone being its most significant revenue generator. The company also earns significant revenue from its services segment, which includes digital content sales, subscriptions, and licensing. This segment encompasses the App Store, Apple Music, iCloud, Apple TV+, and other services that leverage Apple's ecosystem of devices. Additionally, Apple generates revenue from sales of Mac computers, iPads, and wearables like the Apple Watch and AirPods. The company's retail operations, both online and through physical Apple Stores, also contribute to its earnings. Furthermore, Apple has strategic partnerships with various companies to enhance its product offerings and expand its service reach, further bolstering its revenue streams.

Apple Financial Statement Overview

Summary

Apple demonstrates strong financial performance with high profitability margins and efficient cash flow management. The income statement reflects robust gross and net profit margins, while the balance sheet shows a high return on equity despite elevated leverage. Cash flow generation is solid, although there's a slight decline in free cash flow. Overall, Apple's financials reinforce its leadership position in the industry.

Income Statement

Apple's income statement shows robust financial health with strong profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin stands at 46.64%, indicating efficient production and pricing strategy. The net profit margin is 24.30%, reflecting effective cost management and operational efficiency. Revenue growth of 2.39% from the previous period shows consistent upward momentum, albeit at a moderated pace. The EBIT and EBITDA margins are healthy at 31.82% and 34.68%, respectively, demonstrating solid core business performance. Overall, Apple's income statement reflects strong profitability and controlled growth, reinforcing its leadership in the consumer electronics industry.

Balance Sheet

Apple's balance sheet presents a mixed picture of financial stability and leverage. The debt-to-equity ratio is 1.47, indicating a relatively high level of leverage which could pose risks if not managed carefully. However, the return on equity (ROE) is an impressive 145.66%, showcasing exceptional returns for shareholders. The equity ratio of 20.16% suggests a modest proportion of equity financing relative to total assets. Despite the higher leverage, Apple's strong ROE and asset management highlight its effective balance sheet utilization.

Cash Flow

Apple's cash flow statement highlights strong cash generation capabilities. The TTM free cash flow is substantial, although it decreased by 9.47% compared to the previous year. The operating cash flow to net income ratio is 1.13, indicating that Apple's operational activities are generating more cash than the reported net income, a positive sign of cash flow health. Additionally, the free cash flow to net income ratio is 1.01, underscoring efficient cash conversion from earnings. Despite the slight decline in free cash flow, Apple's cash flow management remains robust.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	400.37B	391.04B	383.29B	394.33B	365.82B	274.51B
Gross Profit	186.70B	180.68B	169.15B	170.78B	152.84B	104.96B
EBITDA	138.87B	134.66B	125.82B	130.54B	123.14B	81.02B
Net Income	97.29B	93.74B	97.00B	99.80B	94.68B	57.41B
Balance Sheet
Total Assets	331.23B	364.98B	352.58B	352.75B	351.00B	323.89B
Cash, Cash Equivalents and Short-Term Investments	48.50B	65.17B	61.55B	48.30B	62.64B	90.94B
Total Debt	98.19B	119.06B	111.09B	132.48B	136.52B	122.28B
Total Liabilities	264.44B	308.03B	290.44B	302.08B	287.91B	258.55B
Stockholders Equity	66.80B	56.95B	62.15B	50.67B	63.09B	65.34B
Cash Flow
Free Cash Flow	98.49B	108.81B	99.58B	111.44B	92.95B	73.36B
Operating Cash Flow	109.56B	118.25B	110.54B	122.15B	104.04B	80.67B
Investing Cash Flow	14.03B	2.94B	3.71B	-22.35B	-14.54B	-4.29B
Financing Cash Flow	-129.34B	-121.98B	-108.49B	-110.75B	-93.35B	-86.82B

Apple Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 201.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAPL, the sentiment is Neutral. The current price of 201.08 is above the 20-day moving average (MA) of 200.44, below the 50-day MA of 202.53, and below the 200-day MA of 222.90, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AAPL.

Apple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	83 Outperform	$2.17T	19.91	34.79%	0.47%	13.02%	37.73%
MSFT	83 Outperform	$3.69T	38.32	33.61%	0.67%	14.13%	12.10%
AAPL	76 Outperform	$3.01T	31.45	138.02%	0.52%	4.91%	-0.36%
IBM	75 Outperform	$269.25B	49.83	21.91%	2.32%	1.23%	-33.87%
SONY	73 Outperform	$153.68B	20.13	14.32%	0.49%	-5.46%	14.01%
DELL	70 Outperform	$81.77B	19.21	-179.12%	1.67%	7.68%	27.73%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.70%	9.09%	8.55%
HPQ	61 Neutral	$23.27B	9.55	84.33%	4.68%	2.08%	-12.41%

Apple Corporate Events

Apple Completes $4.5 Billion Notes Issuance

On May 12, 2025, Apple Inc. completed the issuance and sale of $4.5 billion in aggregate principal amount of notes with varying maturity dates from 2028 to 2035. These notes, issued under an underwriting agreement with major financial institutions, represent senior unsecured obligations and are part of Apple’s strategy to manage its debt portfolio, potentially impacting its financial flexibility and stakeholder interests.

The most recent analyst rating on (AAPL) stock is a Hold with a $211.00 price target. To see the full list of analyst forecasts on Apple stock, see the AAPL Stock Forecast page.