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 $220.53 and a daily gain of 1.38%, coupled with an impressive three-month growth of 18.79%, Apple Inc stands out as a formidable player in the tech sector. A detailed analysis, supported by 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 developed by GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been backtested from 2006 to 2021, reveals that stocks with higher GF Scores typically yield superior long-term returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Apple Inc has been awarded a GF Score of 93, indicating a strong potential for market-leading performance.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Apple Inc's Business
Apple Inc, with a market cap of $3.35 trillion and annual sales of $385.6 billion, is one of the largest global corporations, boasting a diverse array of hardware and software products. The iPhone remains a major revenue driver, complemented by other products like Mac, iPad, and Apple Watch, all integrated into an extensive software ecosystem. Apple's innovative approach includes ventures into streaming video, subscription services, and augmented reality. The company designs its software and semiconductors and collaborates with subcontractors such as Foxconn and TSMC for manufacturing.
Financial Strength Breakdown
Apple Inc's financial robustness is reflected in its Financial Strength rating. An impressive Interest Coverage ratio of 120.35 and an Altman Z-Score of 9.82 underscore its ability to manage financial obligations and stave off distress. The strategic Debt-to-Revenue ratio of 0.26 further solidifies its financial health.
Profitability and Growth Metrics
Apple Inc's Profitability Rank is exemplary, with significant improvements in Operating Margin and Gross Margin over the past five years. The company's Piotroski F-Score and Predictability Rank further affirm its operational efficiency and consistent performance.
Conclusion
Considering Apple Inc's formidable financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
