Apple Inc (AAPL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $184.14 and a notable daily gain of 6.42%, despite a slight three-month dip of -0.95%, Apple Inc stands out in the market. The GF Score of Apple Inc, a comprehensive measure of a company's investment appeal, underscores its potential 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. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a higher potential for returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential. Apple Inc has achieved an impressive GF Score of 95, signaling strong outperformance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 5/10
Understanding Apple Inc's Business
Apple Inc, with a market cap of $2.84 trillion and annual sales of $385.71 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. Innovations in streaming video, subscription services, and augmented reality continue to bolster its market presence. Notably, Apple designs its own software and semiconductors, relying on partners like Foxconn and TSMC for manufacturing.
Financial Strength and Profitability
Apple Inc's financial robustness is reflected in its Financial Strength rating and an impressive Interest Coverage ratio of 40.5. Its Altman Z-Score of 8.03 further highlights its stability, significantly reducing bankruptcy risks. The company's strategic debt management is evident from its Debt-to-Revenue ratio of 0.28.
Apple's profitability is equally impressive, with a consistent increase in Operating Margin over the past five years, reaching 29.82% in 2023. Its Gross Margin has also seen a steady rise, indicating enhanced efficiency in revenue conversion into profit.
Growth Trajectory
Apple Inc's commitment to growth is evident from its high Growth rank. The company has demonstrated a robust 3-Year Revenue Growth Rate of 15.7%, outperforming 81.55% of its industry peers. This growth is supported by a strong increase in EBITDA, highlighting Apple's ongoing expansion and operational efficiency.
Conclusion
Considering Apple Inc's comprehensive financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential 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.
