Apple (AAPL) AI Stock Analysis

• Market Cap: $3.05T
• Dividend Yield: 0.49%
• Average Volume (3M): 51.70M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.10
• Revenue Growth: 4.91%
• EPS Growth: -0.36%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 83
• Industry: Consumer Electronics
• EPS (TTM): 1.65
• Shares Outstanding: 14,935,826,000
• 10 Day Avg. Volume: 45,116,381
• 30 Day Avg. Volume: 51,699,481
• PEG Ratio: 16.44
• Price to Book (P/B): 45.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.76
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 16.60
• Enterprise Value/Ebitda: 5.70
• 1Y Price Target: $228.65
• Price Target Upside: 12.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 29

• Rating: 76 Outperform
• Price Target: $228.00 ▲(11.81%Upside)

Apple's overall score is primarily driven by its strong financial performance, highlighted by profitability and strategic growth in services. The earnings call provided a positive sentiment with significant revenue growth, offset by valuation concerns due to a high P/E ratio and technical analysis indicating potential bearish trends.

Positive Factors

Earnings Potential

If AAPL decided to aggressively pursue an advertising revenue stream, this could materially accelerate revenue and EPS growth.

Forecast Performance

The App Store is tracking ahead of the forecast, implying a potential upside in Services revenue.

Revenue Growth

US App Store revenue and monetization is accelerating, showing no impact from the injunction.

Negative Factors

Competition

Every Big Tech competitor wants to take AAPL's 15%-30% platform tax.

Regulatory Challenges

The United States Court of Appeals denied Apple's request to stay the implementation of zero-commission link-out payments.

Survey Risks

Survey shows 2% of Apple EPS is 'at-risk' if real-world behavior mimics survey work.

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's financial performance is robust, marked by high profitability and efficient cash flow management. Despite high leverage, the company maintains excellent returns for shareholders. The income statement highlights strong margins and revenue growth, reinforcing Apple's leadership 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
	EBIT
127.36B	123.22B	114.30B	119.44B	108.95B	66.29B
	EBITDA
138.87B	134.66B	125.82B	130.54B	120.23B	77.34B
	Net Income Common Stockholders
97.29B	93.74B	97.00B	99.80B	94.68B	57.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.50B	65.17B	61.55B	48.30B	62.64B	90.94B
	Total Assets
331.23B	364.98B	352.58B	352.75B	351.00B	323.89B
	Total Debt
98.19B	119.06B	111.09B	132.48B	136.52B	122.28B
	Net Debt
70.02B	89.12B	81.12B	108.83B	101.58B	84.26B
	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: 203.92
• 50DMA: Positive
• 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 203.92 is below the 20-day moving average (MA) of 204.26, above the 50-day MA of 203.51, and below the 200-day MA of 224.63, indicating a neutral trend. The MACD of -1.04 indicates Negative momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 68.27 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	84 Outperform	$2.11T	19.37	34.79%	0.46%	13.02%	37.73%
MSFT	84 Outperform	$3.50T	36.35	33.61%	0.69%	14.13%	12.10%
SONY	79 Outperform	$159.88B	21.27	14.32%	0.36%	1.77%	18.85%
AAPL	76 Outperform	$3.05T	31.82	138.02%	0.49%	4.91%	-0.36%
DELL	72 Outperform	$77.75B	18.15	-179.12%	1.64%	7.67%	―
IBM	68 Neutral	$249.89B	46.25	21.91%	2.49%	1.23%	-33.87%
HPQ	64 Neutral	$23.20B	9.52	84.33%	4.49%	2.08%	-12.41%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

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.