Apple Inc (AAPL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $214.29, Apple Inc has enjoyed a daily gain of 1.74%, and an impressive three-month increase of 26.64%. A detailed analysis, supported by the GF Score, indicates that Apple Inc is poised for significant growth in the foreseeable future.
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 has proven to be predictive of long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Apple Inc boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 7/10
Understanding Apple Inc's Business
Apple Inc, with a market cap of $3.29 trillion and annual sales of $381.62 billion, is one of the largest global companies. It boasts an operating margin of 30.98% and is renowned for its extensive range of consumer and business hardware and software products. Apple's flagship product, the iPhone, constitutes a significant portion of its sales, complemented by other products like Mac, iPad, and Apple Watch. These products are integrated into a vast software ecosystem, which includes newer services like streaming video and augmented reality. Apple designs its software and semiconductors and collaborates with subcontractors like Foxconn and TSMC for manufacturing.
Financial Strength Breakdown
Apple Inc's Financial Strength is evident in its robust balance sheet and prudent capital management. The company's Interest Coverage ratio stands at an impressive 59.12, significantly above the benchmark of 5 set by investment guru Benjamin Graham. Additionally, with an Altman Z-Score of 9.7, Apple Inc is well-protected against financial distress. Its strategic debt management is reflected in a Debt-to-Revenue ratio of 0.27, further solidifying its financial health.
Profitability and Growth Metrics
Apple Inc's Profitability Rank is outstanding, supported by a consistent increase in Operating Margin over the past five years, currently at 29.82%. The company's Gross Margin has also improved, reaching 44.13% in 2023. These figures demonstrate Apple's efficiency in converting revenue into profit. Furthermore, its Piotroski F-Score and Predictability Rank of 5.0 stars reflect a stable financial condition and consistent operational performance.
Conclusion
Considering Apple Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the 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.
