Apple (AAPL) AI Stock Analysis

• Market Cap: $3.12T
• Dividend Yield: 0.49%
• Average Volume (3M): 51.77M
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.09
• Revenue Growth: 4.91%
• EPS Growth: -0.36%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 93
• Industry: Consumer Electronics
• EPS (TTM): 1.65
• Shares Outstanding: 14,935,826,000
• 10 Day Avg. Volume: 41,007,082
• 30 Day Avg. Volume: 51,770,710
• PEG Ratio: 17.02
• Price to Book (P/B): 47.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.85
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 17.18
• Enterprise Value/Ebitda: 5.90
• 1Y Price Target: $228.02
• Price Target Upside: 8.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 76 Outperform
• Price Target: $228.00 ▲(8.56%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

Financial Performance

App Store revenue is still growing at strong momentum with a 12% increase.

Leadership Stability

Sabih Khan, the soon-to-be COO, has a strong history at Apple, suggesting stability and continuity in operations and supply chain strategy.

Negative Factors

Regulatory Risks

Regulatory risks remain a key downside risk for Apple, with concerns about Google's TAC payment to Apple as part of Google’s antitrust case.

Talent Retention

One of Apple's AI executives has departed for Meta, which could signal challenges in retaining top talent.

Apple Business Overview & Revenue Model

Company Description

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	391.04B	383.29B	394.33B	365.82B	274.51B
Gross Profit	180.68B	169.15B	170.78B	152.84B	104.96B
EBITDA	134.66B	125.82B	130.54B	123.14B	81.02B
Net Income	93.74B	97.00B	99.80B	94.68B	57.41B
Balance Sheet
Total Assets	364.98B	352.58B	352.75B	351.00B	323.89B
Cash, Cash Equivalents and Short-Term Investments	65.17B	61.55B	48.30B	62.64B	90.94B
Total Debt	119.06B	123.93B	132.48B	136.52B	122.28B
Total Liabilities	308.03B	290.44B	302.08B	287.91B	258.55B
Stockholders Equity	56.95B	62.15B	50.67B	63.09B	65.34B
Cash Flow
Free Cash Flow	108.81B	99.58B	111.44B	92.95B	73.36B
Operating Cash Flow	118.25B	110.54B	122.15B	104.04B	80.67B
Investing Cash Flow	2.94B	3.71B	-22.35B	-14.54B	-4.29B
Financing Cash Flow	-121.98B	-108.49B	-110.75B	-93.35B	-86.82B

Apple Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.02
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 210.02 is above the 20-day moving average (MA) of 206.73, above the 50-day MA of 204.08, and below the 200-day MA of 222.07, indicating a neutral trend. The MACD of 2.21 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAPL.

Apple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	83 Outperform	$2.22T	20.47	34.79%	0.46%	13.02%	37.73%
MSFT	83 Outperform	$3.76T	39.54	33.61%	0.66%	14.13%	12.10%
AAPL	76 Outperform	$3.12T	32.63	138.02%	0.49%	4.91%	-0.36%
IBM	75 Outperform	$262.02B	48.51	21.91%	2.38%	1.23%	-33.87%
SONY	74 Outperform	$145.63B	19.72	14.32%	0.53%	-5.46%	14.01%
DELL	70 Outperform	$83.89B	19.75	-179.12%	1.70%	7.68%	27.73%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
HPQ	61 Neutral	$23.07B	9.54	84.33%	4.71%	2.08%	-12.41%

Apple Corporate Events

Apple Announces Leadership Transition with New COO

On July 8, 2025, Apple Inc. announced a leadership transition as Jeff Williams will step down as Chief Operating Officer later this month, with Sabih Khan, the Senior Vice President of Operations, taking over the role. This change is part of a long-planned succession, with Williams continuing to oversee Apple’s design team and health initiatives until his retirement later in the year, after which the design team will report directly to CEO Tim Cook.

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.

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.