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 $225.54, Apple Inc has experienced a slight daily decrease of 0.36%, yet it boasts a significant three-month gain of 33.85%. A detailed evaluation using the GF Score indicates that Apple Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that 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 has achieved an impressive 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: 8/10
Understanding Apple Inc's Business
Apple Inc, with a market cap of $3.46 trillion and annual sales of $381.62 billion, is one of the largest global companies. It boasts a diverse portfolio of consumer and business technology products, with the iPhone accounting for the majority of its sales. Apple's ecosystem includes Macs, iPads, and Watches, all integrated with its software services like streaming video and augmented reality. The company designs its own software and semiconductors and collaborates with manufacturers like Foxconn and TSMC. Notably, less than half of Apple's sales are through its flagship stores, with the majority coming from partnerships and distributors.
Financial Strength Breakdown
Apple Inc's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio is an impressive 59.12, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 10.25 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.27 showcases prudent debt management.
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 Growth Rank reflects a strong trajectory, with a 3-Year Revenue Growth Rate of 15.7%, outperforming 80.4% of its industry peers.
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 other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.
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.
