Apple (AAPL) AI Stock Analysis

• Market Cap: $3.01T
• Dividend Yield: 0.46%
• Average Volume (3M): 51.96M
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.12
• Revenue Growth: 5.97%
• EPS Growth: 0.15%
• Country: US
• Employees: 164,000
• Sector: Technology
• Sector Strength: 94
• Industry: Consumer Electronics
• EPS (TTM): 1.65
• Shares Outstanding: 14,840,390,000
• 10 Day Avg. Volume: 57,246,025
• 30 Day Avg. Volume: 51,956,291
• 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: 1.11
• Enterprise Value/Revenue: 8.15
• Enterprise Value/Gross Profit: 17.46
• Enterprise Value/Ebitda: 24.01
• 1Y Price Target: $234.93
• Price Target Upside: 6.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28

• Rating: 75 Outperform
• Price Target: $240.00 ▲(9.08% Upside)

Apple's overall stock score reflects strong financial performance and stable technical indicators, offset by a high valuation. The company's robust profitability and cash flow support its strategic initiatives, while technical analysis suggests moderate momentum. However, the high P/E ratio indicates potential overvaluation, which could limit upside potential.

Positive Factors

Financial Performance

Apple reported strong FQ3 results, with revenue growing an impressive 9.6% YOY, the highest in several years, driven by iPhone upside.

Product Demand

The company announced a record number of active devices, indicating strong consumer demand and product appeal.

Negative Factors

Regulatory and Economic Environment

Regulatory headwinds persist, long-term tariffs implications are unclear, and the macro environment is treacherous.

Tariff Impact

New tariffs are a significant risk and headwind, with Apple reporting US$800mn in tariff-related costs for 3Q25 and expecting an additional US$1.1bn in 4Q25e.

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's financials depict a strong company with high profitability, solid cash flow, and efficient capital management. Despite a high debt-to-equity ratio, the company's strong earnings power and exceptional ROE mitigate risks. Revenue growth is steady, supported by robust profitability margins.

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	138.69B	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: 220.03
• 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 220.03 is above the 20-day moving average (MA) of 210.64, above the 50-day MA of 206.09, and below the 200-day MA of 220.81, indicating a neutral trend. The MACD of 1.00 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 63.47 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	85 Outperform	$3.90T	38.48	33.28%	0.62%	14.93%	15.50%
GOOGL	84 Outperform	$2.36T	20.73	34.83%	0.41%	13.19%	34.51%
AAPL	75 Outperform	$3.01T	30.85	149.81%	0.46%	5.97%	0.15%
DELL	71 Outperform	$86.99B	20.43	-179.12%	1.45%	7.68%	27.73%
SONY	70 Outperform	$150.29B	19.82	14.70%	0.46%	-5.46%	14.01%
IBM	67 Neutral	$233.50B	40.66	22.73%	2.68%	2.69%	-31.73%
HPQ	65 Neutral	$23.49B	9.64	84.33%	4.51%	2.08%	-12.41%
Sector *	61 Neutral	$34.84B	4.76	-10.43%	2.08%	6.54%	-10.13%

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.

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 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.