Apple Inc (AAPL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $227.89, Apple Inc has experienced a slight daily decrease of 0.14%, yet it boasts a significant three-month growth of 9.93%. A detailed evaluation using the GF Score indicates that Apple Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, revealing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For Apple Inc, the GF Score is an impressive 96 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Apple Inc's Business
Apple Inc is a titan in the global market with a market cap of approximately $3.46 trillion and annual sales of $385.6 billion. The company boasts an operating margin of 31.27%, reflecting its efficiency and profitability. Apple's product ecosystem centers around the iPhone, complemented by other innovations such as the Mac, iPad, and Apple Watch. The company has also ventured into services like streaming video and augmented reality, enhancing its software and semiconductor capabilities. Notably, Apple manages a blend of direct sales through its stores and indirect sales via partnerships and distributors.
Financial Strength Breakdown
Apple Inc's financial robustness is evident through its Interest Coverage ratio of 120.35, significantly surpassing the benchmark set by investment guru Benjamin Graham. The company's Altman Z-Score of 10.19 further underscores its ability to avoid financial distress. Additionally, a Debt-to-Revenue ratio of 0.26 indicates a well-managed debt level, contributing to its financial stability.
Profitability Rank Breakdown
Apple Inc's profitability is unmatched, with an increasing Operating Margin over the past five years, reaching 29.30% in 2024. The company's Gross Margin also reflects a positive trend, demonstrating its ability to efficiently turn revenue into profit. The Piotroski F-Score and a Predictability Rank of 5 stars further validate Apple Inc's solid financial health and operational consistency.
Growth Rank Breakdown
Apple Inc's commitment to growth is evident from its Growth Rank of 10/10. The company has demonstrated a strong 3-Year Revenue Growth Rate of 15.7%, outperforming 80.41% of its industry peers. This is complemented by a notable increase in EBITDA, highlighting its ongoing growth capabilities.
Conclusion
Considering Apple Inc's robust financial strength, exceptional profitability, and consistent growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. For investors seeking similar opportunities, the GF Score Screen offers a valuable tool for identifying high-potential stocks.
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.
