Apple Inc (AAPL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently priced at $215.90, Apple Inc has enjoyed a daily gain of 1.6% and an impressive three-month increase of 25.34%. A detailed analysis, supported by the GF Score, positions Apple Inc as a prime candidate for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. This system, which has been rigorously backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield superior long-term returns. For Apple Inc, the GF Score stands at an impressive 93 out of 100, indicating a strong potential for market outperformance based on its financial strength, profitability, growth, GF Value, and momentum ranks.
Understanding Apple Inc's Business
Apple Inc, with a market cap of $3.31 trillion and annual sales of $381.62 billion, is one of the largest global companies. It boasts a diverse array of hardware and software products primarily centered around its flagship product, the iPhone. Apple's innovative approach extends to new applications in streaming video, subscription services, and augmented reality, maintaining its competitive edge. The company's strategic partnerships and direct sales through flagship stores significantly contribute to its revenue streams.
Financial Strength Breakdown
Apple Inc's financial robustness is reflected in its Financial Strength Rank of 7 out of 10. The company's Interest Coverage ratio is a remarkable 59.12, far exceeding Benjamin Graham's recommended threshold of 5, which illustrates its ability to comfortably meet interest obligations. Additionally, an Altman Z-Score of 9.77 indicates low risk of financial distress, and a Debt-to-Revenue ratio of 0.27 underscores Apple's effective debt management.
Profitability and Growth Metrics
Apple Inc's Profitability Rank is exceptional at 10 out of 10. The company has demonstrated consistent improvement in its operating margin over the past five years, with the latest figure at 29.82%. Its Gross Margin has also seen a steady increase, reaching 44.13% in 2023. These metrics not only reflect Apple's efficiency in revenue conversion but also its strategic pricing power.
On the growth front, Apple Inc has outperformed 80.91% of its industry peers with a 3-Year Revenue Growth Rate of 15.7%. The company's EBITDA growth further emphasizes its capacity for expansion and profitability enhancement.
Conclusion
Considering Apple Inc's robust financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. Investors looking for strong, stable, and growing investments would find Apple Inc an attractive option. For more insights into companies with high GF Scores, consider exploring our GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
