AAPL Apple Inc. - Fundamental Analysis
BULLISH
AAPL Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Consumer Electronics
Current Price
$272.41
Analyst Target
$281.06
+3.2% Upside
52W High
$277.32
52W Low
$169.21
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
92%
Analysis Accuracy
Apple trades at a premium valuation with strong profitability and resilient growth momentum, supported by consistent earnings beats and robust cash generation. Despite elevated P/E and P/B multiples, its margins and ROE significantly outperform sector averages, while recent insider selling appears routine rather than alarming. The stock has demonstrated strong price momentum across all timeframes, up 132.6% over five years and +29.2% in the past six months, reflecting durable investor confidence. Analysts unanimously recommend the stock with a $281.07 target, implying 3.2% upside, aligning with Apple’s track record of execution and relative stability versus high-growth but volatile peers like NVDA and AVGO.
Key Strengths
Exceptional profitability: 31.65% operating margin and 26.92% net margin, both well above sector averages of 17.79% and peer group
Industry-leading ROE of 171.42%, vastly exceeding peers MSFT (32.24%), ORCL (69.24%), and sector average (25.54%)
Consistent earnings outperformance: 21 out of 25 quarters beat estimates, with an average surprise of 5.36% over the last four
Strong earnings growth: 91.2% YoY and 86.4% Q/Q EPS growth reflect accelerating profitability, likely driven by services and margin expansion
Attractive analyst consensus: unanimous 'buy' rating from 41 analysts with a $281.07 target, indicating strong institutional conviction
Key Risks
Rich valuation: P/E of 36.52 and Price/Book of 54.58 are high even within a high-multiple sector (avg P/E 114.32), leaving limited margin for error
Elevated Debt/Equity ratio of 1.52 vs sector average of 0.78 and MSFT's conservative 0.33, increasing financial risk in rising rate environments
Liquidity concerns: current ratio of 0.89 and quick ratio of 0.77 suggest tight short-term liquidity, below the 1.0 threshold for financial safety
Recent insider selling: $87.26M in sales over the last six months, including CEO and CFO, though likely routine, could signal reduced confidence at the top
Limited dividend yield of 0.38% and lack of aggressive capital return policy compared to peers, reducing appeal for income-oriented investors
AI Fair Value Estimate
Based on comprehensive analysis
$281.07
+3.2% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare AAPL against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations