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NASDAQ:AAPL
Tea Leaves Summary
Apple [NASDAQ:AAPL] share price
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Page Updated: Aug 19, 2019

Apple [NASDAQ:AAPL] share price, stock quote Analysis

What has the stock performance of Apple been like?
stock quote price chart

Apple's (NASDAQ:AAPL) share price is 1.9% higher in the past 12 months and has underperformed the overall US TECH market which is 3.1% higher in the same timeframe. This is equivalent to a -1.2% lower return over the period which puts the share price as an underperformer vs other US TECH companies.

Sentiment

Tea Leaves Score
sentiment tea score

Analyst RatingS

What are analyst ratings for Apple?
Analyst Ratings
Analyst Ratings Change
analyst ratings

From 38 analysts that cover Apple's stock, the average rating is 4.1. This is a weighted average of 11 strong buys, 21 buys, 6 holds. This is 0.3 higher than a month ago which gives this factor a tea-score of 5/5.

Positions

Tea Leaves Score
positions tea score

Insider Trades

What has Apple's insider trading been over the past year?
Sold
Bought
insider trading chart

Apple insider's have net been buying stock over the past 12 months, in the previous month insiders have been net buying. In fact the buy to sell ratio in the past month has been 50.0% which is 174.1% lower than the last 12 months buy to sell ratio. This put's Apple's Insiders in the top quintile vs their peers giving this factor a tea-score of 1/5.

Ownership

What is the ownership of Apple stock?
ownership chart

For Apple, currently 60.9% of stock (1 billion shares) is owned by Institutions, 39.0% (802 million shares) is owned by Individuals, and 0.1% (2 million shares) is owned by company insiders. The CEO has a holding of 0.02% which is equivalent to 40 thousand shares with a market value of $129 million. This factor has a tea-score of 5/5.

Short Interest

What is the short interest for Apple stock?
short interest chart

As of 31 July 2019, the short interest for Apple has been 1.01% of the shares outstanding which is 464 billion shares. This is less than 1 month ago which had 1.02% of the shares outstanding which is 468 billion short interest in shares. This equals a tea-score of 5/5.

Growth

Tea Leaves Score
growth tea leaves

Revenue & Earnings

What has Apple's revenue history been by year?
revenue chart

Apple's revenue in the last 12 months ending 29 June 2019 is $259Bn. Apple's average revenue growth for the last 4 years has been 5.1% which is currently lower than their comps of 6.2%.

Free Cash Flow Yield Growth

What is Apple's free cash flow yield?
free cash flow yield chart

Apple's free cash flow yield is 6.2% and has shrunk from 4 years ago. The free cash flow yield for Apple 1 year ago was 7.5% and 3 years ago it was 14.2%.

Dividend History & yield

What has Apple's dividend payments been historically?
Dividend ($)
Dividend Yield (%)
dividend chart

Apple pays dividends every 3 months and has done so since 02 April 2013. Dividends have been steadily increasing over the past 4 years from $0.52 (dividend yield of 0.48%) to $0.77 today (yield of 0.38%).

Value

Tea Leaves Score
value tea leaves

PE Ratio

What is Apple's PE ratio?
pe ratio

Apple's PE ratio is 17.5x. This is calculated from their EPS of $2.02 and price per share of $206.5. Apple's PE ratio values the company cheaper than 40% of it's competitors giving this factor a tea-score of 2/5.

PEG Ratio

What is Apple's PEG ratio?
peg ratio

Apple's PEG ratio is nanx. This is calculated from their PE ratio of 17.5x and their last 12 months growth rate of -0.128%. This is less attractive than their competitors so the tea-score for this factor is nan/5.

Share Price / Book (PB Ratio)

What is Apple's PB ratio?
PB ratio

The PB ratio for Apple is 9.7x. This is more expensive than their competitors who have an average PB ratio of 4.7x. The tea-score is 4/5.

Free Cash Flow Yield

What is Apple's free cash flow yield?
free cash flow yield

Apple's free cash flow yield is 6.2% which is ranked 2.0/5 when compared to its competitors. This is calculated from a free cash flow of $69Bn (as reported for the 12 months ending 29 June 2019) divided by its current market capitalisation of $933Bn. The average free cash flow yield across Apple's comps is 8.1%.

Return On Investment (ROI)

What is Apple's return on investment (ROI)?
return on investment

Apple's return on investment is 52.7%. This is less profitable than its competitors.

Health

Tea Leaves Score
health tea leaves

Assets vs Liabilities

What is Apple's current ratio (assets vs liabilities)?
assets vs liabilities

Apple's current ratio is calculated by (current assets) / (current liabilities) which equals 1.5x. This less attractive than their competitors and also worse than recommended for a healthy company.

Debt vs Equity

What is Apple's debt vs shareholder equity?
debt vs equity

Apple's debt to shareholder equity is 112.4%. This is worse than their competitors and also worse than advised for a well-managed balance sheet.

Dividend Payout Ratio

What is Apple's dividend payout ratio?
dividend payout ratio

Apple's dividend payout ratio calculated against their free cash flow is low at 30.4%. This is in quintile 4 when measured against their comps.

Earth

Tea Leaves Score
ESG score
What is the overall ESG (environmental, social and corporate governance) rating for Apple?

Apple's has a good overall ESG rating of 70/100. Their competitors have a score between 45 and 86 with the average at 65.

ESG Environmental

What the latest (ESG) environmental responsibility score for Apple vs their competitors?
ESG environmental
We can see here what the environmental consciousness of Apple is relative to other similar companies.

ESG Social

What the present (ESG) social responsibility score for Apple vs their peers?
ESG social
We can get a sense of what the social responsbility of Apple is when compared to other rival companies.

ESG Corporate Governance

What the current (ESG) corporate governance score for Apple vs their challengers?
ESG corporate governance
With this number we can understand what the corporate governance of Apple is when compared to it's peers.

APPLE [NASDAQ:AAPL] COMPANY PROFILE

Description

What is the company description of Apple?
Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems.

Apple [NASDAQ:AAPL] PEERS/COMPETITORS

Apple [NASDAQ:AAPL] Additional Q&A

Questions & Answers

What is the 52 week high for Apple stock quote?

Apple (NASDAQ:AAPL) hit a new 52-week high on 03 October 2018 at a price of $229.39 with 28,654,800 shares traded that day. This is 11.1% higher than than its current price of $206.5 and 62.6% higher than the 52-week low of $141.04 on 03 January 2019. Average daily volume traded has been 26 million shares over the past 3 months.

What is the highest price Apple stock has ever been?

The all-time highs for Apple stock were reached on 03 October 2018, 320 days ago at a price of $229.39. This equates to a market capitalisation of $1Trn. The highest price reached is 11.1% higher than the current price of $206.5 with a current market cap of $933Bn.

What is the beta of Apple stock?

Apple stock moves 1.1x the US TECH market average which makes its beta higher than the overall market.

What is the volatility of Apple (AAPL) stock?

Apple's stock has an annual volatility of 31.7% which is more volatile than the average US TECH market volatility of 20.8% which has made it a less safe stock to own in the past vs just owning the index for investors aiming for lower portfolio volatility.

What have Apple's share buybacks been over the past year?

Apple is currently running a share-buyback program and in the past year alone the company has repurchased 104 million of shares outstanding at a total expense of $23Trn. In the same time frame the share price has moved 1.9% higher which is an underperformance of -1.2% vs the overall market. Apple still has $420Trn of cash remaining on their balance sheet.

Who owns the most Apple stock?

Barry White is the largest individual shareholder in Apple with 1 billion shares. He is an independent director of Apple. The largest institutional holder is T-Rowe and they own 2.2% of the issue size with 100 million shares. T-Rowe have been net buying shares over the last 12 months as they own 1 million more shares than a year ago.

When did Apple beat earnings expectations in the last 4 years?

In the past 4 quarters Apple has had 3 earnings beat's and 1 earnings miss's. The average earnings beat has been 12.1% and the average earnings miss has been 8.2%.

When is Apple's next earnings date and what are the expectations?

Apple is set to report earnings on 30 July 2019 after market close. The report will be for the fiscal Quarter ending June 2019. Based on 14 analysts' forecasts, the consensus EPS forecast for the quarter is $2.12. Recent analyst revisions have been positive implying a potential EPS of $2.24.

What is Apple's upcoming earnings report expectations?

The earnings expectations for Apple's upcoming report on 30 July 2019 are from 14 analysts with an average EPS of $2.12. The lowest analyst rating is $2.01, the highest is $2.84. The most recent earnings revisions have been positive with a most recent estimate of $2.24.

What is Apple's earnings per share (EPS)?

Apple's latest earnings per share (EPS) was reported as $2.02 on 30 April 2019 for fiscal quarter ending March 2019. This is 11.0% higher than 12 months ago when they reported EPS of $1.82

What is Apple's dividend growth rate?

Apple's dividends have grown at 5.48% in the past year and an average growth of 12.02% over the past 4 years. This is higher then it's competitors 4-year average dividend growth of 4.1

What is Apple's dividend yield?

Apple's current dividend yield is 0.38%. This is calculated by taking the dividend's per share of $0.77 (the last payment which was on 09 August 2019) and dividing by the current share price of $206.5.

What is Apple's previous and next dividend date?

Apple's most recent dividend date was 09 August 2019 when the company paid $0.77 and the next dividend date is 08 November 2019 with an expected payment of $0.77.

Is Apple stock a good investment?

Apple (NASDAQ:AAPL) is just about the only technology company that's been able to maintain its premium valuation throughout the economic downturn.

Apple became the world's largest company, and Wall Street's top stock picker, all during the crash of 2008. A few years later, the stock has completely broken its recent decline. At the moment, it's worth more than $1 trillion, and there are those who are concerned that, although Apple is selling loads of iPhones, it hasn't got any other goods to sell.

But how good a value is it?

Jonathan Weil notes that Apple's earnings per share actually fell during the tech bubble, whereas in recent years they've been growing around 25%. That's interesting -- but how useful is that in judging whether a stock is a bargain? Is 25% growth really better than zero? (Amazon, another massively successful stock, currently earns a paltry 12% on its earnings.)

Jonathan's column, and other pieces like it, sounds pretty convincing. First, he points out that Apple's market cap is twice as high as it was when the bubble burst. Second, he observes that the stock's forward P/E ratio is just 18, even though projected earnings per share over the next year are over $16. Third, the P/E is still lower than it was in 2009, and analysts expect even faster growth in future years. Fourth, by being a proven leader in a growing market, Apple is the only tech company with sufficient cash to buy back its own stock at today's prices. Fifth, while Apple is planning to sell off some of its capital-intensive assets, it still has a lot of cash sitting around.

This argument also seems persuasive when you consider the strength of Apple's balance sheet. Even if Apple were producing a third of the growth in its earnings that Google is, it would still have a trailing P/E less than half that of Google's. And that's not counting the tens of billions of dollars that Apple is in the process of returning to its shareholders.

But this all tells us pretty much the same thing that the growth numbers Jonathan cites tell us: The market for Apple's products is roaring ahead, and Apple is in a great position to take full advantage of that boom. But we don't know what kind of growth is likely to come, because none of the analysts who count on Apple growth would accept projections that are below even that assumption. The best Apple's believers can hope for is that the iPhone keeps growing at the high end, keeping up its runaway pace, and that Apple really can become a real superpower in the hardware business.

Which brings us to the weakness of Jonathan's thesis. While Apple has had a great run, it's also been the best-performing company in a pretty ugly market. Investors have cheered Apple's growth, not because of a confidence that the model will last, but because the company has soared above it. What are the odds that this upward trend will continue indefinitely?

Where is Apple stock headed?

There was a particular moment in last month's shareholder meeting of Apple's (NASDAQ:AAPL) when I wondered aloud what the company would do with the cash on its balance sheet.

Yes, I know. Everyone's thinking that Apple should invest the money in some new gadget, but the company doesn't need one. The company can probably put the money to good use. Apple's management's cash surplus is the result of decisions that it has pursued continuously and prudently over the course of the last half-century, and which consistently have yielded prodigious returns for its investors.

So it is gratifying to see that it has decided to contribute some of that cash to the cause of growth: Apple agreed last week to take steps to bring down the corporate tax rate.

Now it's worth noting that Apple is quite literally a giant corporation. Even though it has only 20,000 employees, its $360 billion in revenue and $256 billion in net income (assuming annualized growth of 11%) leaves it among the few conglomerates that would have made the Fortune 500 (which ranks firms from 500 to 9,000 by revenue), regardless of whether it sold a single widget.

It's also worth noting that the $38 billion that Apple has agreed to bring back from overseas -- just 0.5% of its worldwide profit -- will do little to make a dent in the trillion-dollar mountain of corporate cash that the Trump administration has been allowing companies to accumulate.

Still, it's nice to see that Apple is doing the right thing in getting some of that cash home. There was a time when Apple invested in capital equipment -- but now the company has no choice: the computers and software that it uses to run its sprawling worldwide network of retail stores are mostly made in Asia, at a cost that is much higher than their cost in the U.S. So it's reasonable to expect that one of the companies that controls many of Apple's biggest rivals will seize the opportunity presented by Apple's moves to replace the unsustainably high corporate tax rate with one that's a lot closer to tax rates paid on labor.

Meanwhile, it's good to see Apple spending its cash on repurchasing stock -- and on the dividend, for that matter. That was a thing that Wall Street used to like, when it was the premier tech company, but then the stock split more than once and Apple made a habit of failing to increase its dividend over decades. Let's hope that this one time around Apple gets it right.

But here's my question: Could Apple have used its large cash hoard a few years ago to do something different?

Wouldn't it have been better for the company to make what became its most important initiative, the development of a product that could rival Samsung's S-series phones -- not by going out and licensing a new feature or protocol from Nokia (which does need to license these things), but by being first to produce something else entirely?

Apple is enjoying the fruits of the iPhone's extraordinary success in recent years, but what's gone unmentioned is that the good fortune of the iPhone -- and the decline of the likes of Samsung -- represents the result of three significant errors.

First, Apple chose to design the design that it did, rather than adopting some other company's (but more useful) ideas. That was very smart in hindsight, but it might not have been so smart at the time, and it left the company vulnerable to the strong competition it faced from Samsung and others, such as Huawei and Huawei.

Second, Apple chose to make almost all of its phones through a tiny set of suppliers, and not, for example, through Apple's network of retail stores. This created a boom and bust situation, with all the extra inventories, which actually was good for the company in the long run. But it led to terrific cost increases (and, remember, that's how Apple got the cash to buy back its stock to such an extent). And third, Apple decided to bet heavily on China, and on other Asian countries, even as those countries started to show the dreaded signs of maturity.

As a result, Apple's marketing/distribution machine has become a China-centric monster that struggles to get its products to people around the world. It was a critical error, and something Apple can't afford to make again.

Yes, Apple has excess cash. But this will be one company that it doesn't spend it on.

This article originally appeared on Grumpy Old Man.

Is Apple stock undervalued?

Perhaps you've seen a message on Twitter or another social-media site: "Are Apple shares undervalued?"

You should ask yourself why. If it's an expression of nervousness about how Apple's market-beating stock has started to come down a bit, that's understandable. (As of this writing, Apple was down about 1.6% Thursday.) But the phrase isn't really saying much -- and, if anything, Apple's shares have gotten to a discount level that they've never been at before.

If it's a sign of confidence that Apple shares are still overvalued after a run-up of more than 200%, it's more questionable. If the whole run-up in price was predicated on some radically new concept of business success -- i.e., on a belief that anyone who owns a Mac is entitled to the most profitable corporation in the world -- then, no matter how low the stock price gets, it's not likely to plummet. More likely, Apple will eventually succeed in launching a market-beating new iPhone that's big enough to turn out to be the standard iPhone.

All of which is to say that it's not clear what the current discounted sentiment says. Why it should say that Apple shares are undervalued I still don't know. (I don't know why shares in Alphabet, Google's parent company, should say anything -- but it sure doesn't. Alphabet shares have gone nowhere, despite that company's enormous profits.)

It's also useful to take stock of what's happening in the market in general.

A lot of people are surprised that Apple is down so much despite its strong profits. The new iPhone XS Max -- the top-of-the-line new iPhone, which is definitely a big product -- went on sale this week. Yesterday, a bunch of Apple-centric sites spotted that "likes" on the new iPhone had gone down from an average of 2.7 million to a mere 1.9 million over the last two days.

Some people are surprised that Apple is down so much despite its strong profits. (The new iPhone XS Max) Some people are surprised that Apple is down so much despite its strong profits. (The new iPhone XS Max) SEE MORE VIDEOS

While that might seem obvious, it's important to recognize that the iPhone is a declining business. Even the iPhone X has seen a substantial drop in sales -- Apple's earnings per share for its fiscal first quarter of 2019 are now down over 40 percent from their peak in the fourth quarter of 2016. So even if Apple seems to be slowing down its growth -- as it is, in fact -- its shrinking sales don't tend to push it into a negative growth trend.

Apple's revenues will probably start to rise again once it releases a new iPhone. All this indicates is that the company is already taking a little bit of slack from the declining sales of older iPhones -- but it's clearly not going in the opposite direction. If anything, new iPhone sales are going up because the firm knows that people are going to buy it this fall.

If that's true, then a bigger question is whether people are going to buy new iPhones in droves this fall. Last year's iPhone sales were uninspiring, so it's going to be easy for Apple to exceed expectations. But there's also a chance that there's a supply bottleneck -- or at least that Apple doesn't expect the demand for iPhones to be as high as last year.

Either way, there's also an opportunity here to get in on a stock that looks like it's going to keep on rising. One of the great things about owning Apple stock -- one of the reasons, in fact, that I buy it for my own portfolio -- is that Apple is one of the rare stocks that's cheap and fabulous at the same time.

The stock market is looking a little tired right now -- but Apple is feeling like a small child still running around with his legs cut off.

Paul Krugman is a columnist for The New York Times.

Can Apple's stock price recover?

On Monday, Apple (NASDAQ:AAPL) released its first-quarter earnings, with profits up 32% over last year. The share price rose as much as 11% as investors celebrated the news.

Why?

All is not well with the economy, but it's far from dire. GDP increased by 4.2% in the first quarter, a figure that simply cannot be sustained. But growth is now stronger than at any time in the past four years. Joblessness is down. The Dow was at another all-time high on Thursday -- if you don't mind watching constantly for any sign of a falling stock market, that's an attractive investment, even if there will be many more peaks and valleys ahead.

The pop on Monday could be a reaction to a Chinese stock market slump. Or the announcement of a new iPad, or positive earnings, or another new product, or Warren Buffett's buyback. The real key, however, is this: the Apple share price has fallen far short of where it stood before the iPad was launched.

As late as 2011, it traded at well over $700 per share. In the first few years after that, as the worldwide smartphone boom unfolded, it ran to more than $450 per share, just about halfway to its all-time high. If it managed to hit $700 this year, it would have lost a huge chunk of its value.

But in the first quarter of this year, the price fell back to $180 per share. That puts the stock back to just about where it was the day before Apple's much-hyped iPhone 6 was announced, a full four years after the latest iteration of the tablet PC first arrived.

If you like stock prices -- and in my case, I certainly do -- you can enjoy some big share-price gains, and then be disappointed when the good times stop rolling. And yes, Apple is an enormous company, which is why it's so hard to get a decent price for it. I certainly hope that Wall Street's love of company-owned media companies lasts a long time, since that would mean that people aren't paying enough attention to Google (NASDAQ:GOOG) (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN). But that's a long way off.

Meanwhile, if you think it's appropriate to look at what a company can do for you while it's doing good -- for example, by helping to create a stronger and more secure society -- you might want to take a hard look at Apple. Many of the problems that it and the rest of the technology sector have faced since the turn of the century have been caused by desperate attempts to find new products. But the big problem now is the same as the big problem 20 years ago, but the answer isn't new products -- it's training.

That's why there's so much talk about the role of artificial intelligence. Soon, no one will be able to tell what company comes up with the next breakthrough: it could be Google, it could be Microsoft, it could be a small start-up in Austin, Texas, or it could be Apple, Intel, Amazon, or a huge conglomeration of small companies. That's good for innovation, and it's also good for the economy.

What business today does its part to solve the problems of tomorrow? Certainly not Apple. But it's important, and Apple is very good at doing things that help to resolve some of the biggest problems of the day -- a task that's a lot more challenging today than it was two decades ago.

When it first emerged, Apple made an enormous contribution to the overall economy by making millions of consumers happy with much cheaper computers, which reduced sales of PCs for competitor PC companies. But as the company's products have become more complicated and more expensive, the benefits have largely been spread among the masses of consumers. Meanwhile, profits from competing technologies have become concentrated in the hands of just a few.

Soon, in other words, the business of computer sales will shrink even as profits from other technologies continue to surge. It may come as a surprise to many investors that computers haven't grown as large a share of the economy as, say, cars, or televisions, but that should be of no concern to them.

I remember a previous economic boom well: the late 1980s and early 1990s. This is the story of the period when a new computer screen became universally affordable -- when televisions went from essential to luxury; and when people suddenly realized that the only thing they really needed was a computer. That boom began with a large bang: corporations and government began building enormous amounts of new hardware, and the price of that hardware plummeted. By the time the boom ended, we'd bought far more new technology than our needs could ever hope to chew up.

It wasn't surprising, in fact, that

Is Apple stock a buy or sell?

Apple stock (NASDAQ:AAPL) has been on a tear of late, rising more than 30% in the past month. This month, the stock is trading for around $200 -- more than it has ever been.

While that’s big news, it’s not necessarily news for Apple: In 2006, as the stock finally reached a wide enough range for the right kind of risk-adjusted return, shares fell hard, plunging more than 50% from their peak.

What might explain this frenzy? For one thing, a lot of people aren’t recognizing that the stock is worth about 40% less than it was a year ago. But rather than saying something like, “Cue the stock-market boos,” these people are responding to headlines -- which, in the old days, would have been met with a quick and comprehensive meltdown. Instead, all you hear is people’s reactions to the fact that it’s almost 40% cheaper. This mostly misses the point, since the price-to-earnings ratio of Apple -- which is what people most often cite -- doesn’t tell us anything about what Apple stock is worth.

But the attention on this issue misses the point that our stock market is absurdly overvalued, even by historical standards. All stocks, of course, are overvalued. But Apple stock is about the biggest overvalue in history.

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