Apple (AAPL) AI Stock Analysis

• Market Cap: $3.55T
• Dividend Yield: 0.43%
• Average Volume (3M): 55.41M
• Price to Earnings (P/E): 36.2
• Beta (1Y): 1.09
• Revenue Growth: 5.97%
• EPS Growth: 0.15%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 1.57
• Shares Outstanding: 14,840,390,000
• 10 Day Avg. Volume: 57,958,943
• 30 Day Avg. Volume: 55,408,219
• PEG Ratio: -45.94
• Price to Book (P/B): 61.37
• Price to Sales (P/S): 8.94
• P/FCF Ratio: 32.12
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 7.47
• Enterprise Value/Gross Profit: 16.00
• Enterprise Value/Ebitda: 21.54
• 1Y Price Target: $244.84
• Price Target Upside: 2.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 33

• Rating: 80 Outperform
• Price Target: $266.00 ▲(11.30% Upside)

Apple's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability, cash flow, and strategic focus on AI and global expansion support a positive outlook. However, high valuation metrics and technical indicators suggesting overbought conditions temper the overall score.

Positive Factors

Revenue Growth

Apple's consistent revenue growth across iPhone, Mac, and Services indicates strong market demand and effective product strategy, supporting long-term business expansion.

AI and Innovation

Apple's focus on AI innovation enhances its competitive edge, driving future product differentiation and ecosystem integration, crucial for sustaining market leadership.

Global Expansion

Apple's global expansion strategy, including new retail stores, strengthens its international presence and revenue diversification, reducing reliance on any single market.

Negative Factors

High Debt Levels

High debt levels could limit financial flexibility and increase risk during economic downturns, potentially impacting long-term investment and growth capabilities.

Tariff-Related Costs

Ongoing tariff-related costs could pressure margins and profitability, necessitating strategic adjustments to mitigate long-term financial impact.

iPad Revenue Decline

Declining iPad revenue suggests challenges in product demand or competition, potentially affecting Apple's diversification efforts and overall growth trajectory.

Apple Business Overview & Revenue Model

Company Description

Apple Inc. is a leading global technology company known for its innovative consumer electronics, software, and services. Founded in 1976 and headquartered in Cupertino, California, Apple operates in several sectors including hardware, software, and digital services. Its core products include the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. In addition to hardware, Apple offers a range of software services such as the iOS and macOS operating systems, the iCloud storage service, and subscription services like Apple Music, Apple TV+, and the App Store.

How the Company Makes Money

Apple generates revenue through multiple streams, primarily from the sale of its hardware products, which include the iPhone, iPad, Mac, and various accessories. The iPhone remains the largest contributor to the company's revenue, accounting for a significant portion of total sales. In addition to hardware, Apple earns substantial income from its services segment, which encompasses digital content sales, cloud services, and subscriptions. The App Store, Apple Music, and Apple TV+ are key components of this segment. Furthermore, Apple benefits from partnerships with telecommunications companies and app developers, which contribute to its ecosystem and revenue generation. The company's focus on premium pricing and brand loyalty also plays a critical role in its financial success.

Apple Financial Statement Overview

Summary

Apple's financial statements indicate strong profitability and cash generation capabilities, with a high net profit margin and robust operational efficiency. However, the high debt-to-equity ratio suggests reliance on debt financing, which could pose risks in economic downturns.

Income Statement

Apple's income statement shows strong profitability with a TTM Gross Profit Margin of 46.68% and Net Profit Margin of 24.30%, indicating effective cost management and pricing strategy. The Revenue Growth Rate of 4.50% over the previous year is modest but consistent, reflecting steady demand for Apple products. The EBIT Margin of 31.87% and EBITDA Margin of 33.94% underscore robust operational efficiency.

Balance Sheet

Apple maintains a solid balance sheet with a Debt-to-Equity Ratio of 1.55, which is relatively high but manageable given its strong earnings. The Return on Equity (ROE) stands at 150.87%, showcasing exceptional shareholder value creation. However, the Equity Ratio of 19.86% suggests a reliance on debt financing, which could pose risks in economic downturns.

Cash Flow

Apple's cash flow is robust with a Free Cash Flow of $105.66 billion, reflecting a slight decline from the prior year but still very strong. The Operating Cash Flow to Net Income Ratio of 1.09 indicates healthy cash generation relative to net earnings, while the Free Cash Flow to Net Income Ratio of 1.06 confirms efficient capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	408.63B	391.04B	383.29B	394.33B	365.82B	274.51B
Gross Profit	190.74B	180.68B	169.15B	170.78B	152.84B	104.96B
EBITDA	141.70B	134.66B	125.82B	133.14B	123.14B	81.02B
Net Income	99.28B	93.74B	97.00B	99.80B	94.68B	57.41B
Balance Sheet
Total Assets	331.50B	364.98B	352.58B	352.75B	351.00B	323.89B
Cash, Cash Equivalents and Short-Term Investments	55.37B	65.17B	61.55B	48.30B	62.64B	90.94B
Total Debt	101.70B	119.06B	123.93B	132.48B	136.52B	122.28B
Total Liabilities	265.67B	308.03B	290.44B	302.08B	287.91B	258.55B
Stockholders Equity	65.83B	56.95B	62.15B	50.67B	63.09B	65.34B
Cash Flow
Free Cash Flow	96.18B	108.81B	99.58B	111.44B	92.95B	73.36B
Operating Cash Flow	108.56B	118.25B	110.54B	122.15B	104.04B	80.67B
Investing Cash Flow	19.23B	2.94B	3.71B	-22.35B	-14.54B	-4.29B
Financing Cash Flow	-118.16B	-121.98B	-108.49B	-110.75B	-93.35B	-86.82B

Apple Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 238.99 is above the 20-day moving average (MA) of 232.75, above the 50-day MA of 222.62, and above the 200-day MA of 221.15, indicating a bullish trend. The MACD of 3.92 indicates Positive momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.05 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
MSFT	83 Outperform	3.79T	37.32	29.65%	0.65%	14.93%	15.50%
AAPL	80 Outperform	$3.55T	36.20	149.81%	0.43%	5.97%	0.15%
GOOGL	79 Outperform	3.02T	26.75	31.85%	0.33%	13.19%	34.51%
SONY	78 Outperform	177.31B	22.70	13.83%	0.41%	-4.41%	18.04%
HPQ	73 Outperform	26.08B	10.09	-209.75%	4.15%	3.11%	-3.54%
IBM	72 Outperform	241.34B	41.77	21.20%	2.59%	2.69%	-31.73%
DELL	65 Neutral	87.64B	18.78	-173.32%	1.49%	10.68%	24.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Apple Corporate Events

Apple Appoints Sabih Khan as New COO

Apple Inc. announced that Sabih Khan has been appointed as the new Chief Operating Officer, effective July 25, 2025, succeeding Jeff Williams. Khan, who has been with Apple since 1995, previously held senior positions in operations and product operations, and his appointment is part of a planned transition by the company.

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.