APPLE INC.
NDQ-AAPL RECENT
PRICE 179.36 P/ERATIO 28.7(Trailing:
Median: 15.0) P/E RATIO 1.76 YLD 0.5%
30.1 RELATIVE DIV’D VALUE
LINE
TIMELINESS 3 Raised 4/28/23 High:
Low:
25.2
14.6
20.5
13.8
29.9
17.6
33.6
23.0
29.7
22.4
44.3
28.7
58.4
36.6
73.5
35.5
138.8
53.2
182.1
116.2
182.9
125.9
198.2
124.2
Target Price Range
2026 2027 2028
SAFETY 1 Raised 4/17/20 LEGENDS
21.0 x ″Cash Flow″ p sh 320
TECHNICAL 2 Raised 7/21/23 . . . . Relative Price Strength
7-for-1 split 6/14
BETA 1.00 (1.00 = Market) 4-for-1 split 8/20 200
Options: Yes 4-for-1
18-Month Target Price Range Shaded area indicates recession 160
Low-High Midpoint (% to Mid) 120
100
$149-$280 $215 (20%) 80
2026-28 PROJECTIONS 60
Ann’l Total
Price Gain Return 40
High 240 (+35%) 8%
Low 195 (+10%) 3%
% TOT. RETURN 8/23
Institutional Decisions THIS VL ARITH.*
4Q2022 1Q2023 2Q2023 STOCK INDEX 18
Percent 90 1 yr. 20.2 10.6
to Buy 1842 1765 1692 shares 60
to Sell 2341 2317 2507 3 yr. 48.2 45.8
traded 30
Hld’s(000)945677991305109211688 5 yr. 243.9 43.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 © VALUE LINE PUB. LLC 26-28
.98 1.31 1.45 2.54 4.16 5.95 6.79 7.79 10.47 10.10 11.18 13.96 14.64 16.17 21.55 24.73 24.80 29.20 Sales per sh A 37.60
.16 .21 .25 .59 1.07 1.71 1.74 2.02 2.90 2.63 2.85 3.70 3.82 4.03 6.24 6.96 6.95 7.95 ‘‘Cash Flow’’ per sh 10.30
.14 .19 .22 .54 .99 1.58 1.42 1.61 2.31 2.08 2.30 2.98 2.97 3.28 5.61 6.11 6.05 6.60 Earnings per sh B 9.00
-- -- -- -- -- .09 .41 .45 .50 .55 .60 .68 .75 .80 .85 .91 .95 1.06 Div’ds Decl’d per sh E 1.56
.03 .04 .05 .08 .16 .32 .32 .41 .50 .60 .61 .70 .59 .43 .65 .67 .85 .85 Cap’l Spending per sh 1.00
.60 .85 1.10 1.86 2.94 4.50 4.91 4.75 5.35 6.01 6.54 5.63 5.09 3.85 3.72 3.18 3.95 3.95 Book Value per sh 5.60
24425 24873 25195 25647 26020 26298 25178 23465 22315 21345 20505 19020 17773 16977 16977 15943 15500 14000 Common Shs Outst’g C 12500
26.3 30.4 19.2 15.2 12.4 12.0 12.3 13.0 12.8 12.6 14.9 15.3 16.1 24.7 23.4 25.9 Bold figures are Avg Ann’l P/E Ratio 24.0
1.40 1.83 1.28 .97 .78 .76 .69 .68 .64 .66 .75 .83 .86 1.27 1.26 1.50 Value Line Relative P/E Ratio 1.35
estimates
-- -- -- -- -- .5% 2.3% 2.2% 1.7% 2.1% 1.8% 1.5% 1.6% 1.0% .6% .6% Avg Ann’l Div’d Yield .7%
CAPITAL STRUCTURE as of 7/1/23 170910 182795 233715 215639 229234 265595 260174 274515 365817 394328 384050 409000 Sales ($mill) A 470000
Total Debt $109.3 bill. Due in 5 Yrs $50.0 bill. 32.6% 33.1% 35.3% 32.7% 31.2% 30.8% 29.4% 28.2% 32.9% 33.1% 33.5% 32.5% Operating Margin 33.0%
LT Debt $98.1 bill. LT Interest $3.9 bill. 6757.0 7946.0 11257 10505 10157 10903 12547 11056 11284 11104 11700 12000 Depreciation ($mill) D 12450
(62% of Cap’l)
37037 39510 53394 45687 48351 59531 55256 57411 94680 99803 96100 99070 Net Profit ($mill) 116590
Leases, Uncapitalized Annual rentals $1,758 mill. 26.2% 26.1% 26.4% 25.6% 24.6% 18.3% 15.9% 14.4% 13.3% 16.2% 16.0% 16.0% Income Tax Rate 16.0%
21.7% 21.6% 22.8% 21.2% 21.1% 22.4% 21.2% 20.9% 25.9% 25.3% 25.0% 24.2% Net Profit Margin 24.8%
No Defined Benefit Pension Plan 29628 5083.0 8768.0 27863 27831 14473 57101 38321 9355.0 d28559 d3400 d2750 Working Cap’l ($mill) 14775
16960 28987 53463 75427 97207 93735 91807 98667 109106 98959 97000 96900 Long-Term Debt ($mill) 96000
Pfd Stock None
123549 111547 119355 128249 134047 107147 90488 65339 63090 50672 61575 55325 Shr. Equity ($mill) 70225
Common Stock 15,648 mill. shs. 26.5% 28.4% 31.3% 23.2% 21.8% 30.8% 31.5% 36.5% 55.8% 67.7% 62.0% 66.0% Return on Total Cap’l 72.0%
30.0% 35.4% 44.7% 35.6% 36.1% 55.6% 61.1% 87.9% 150.1% 197.0% 156% 179% Return on Shr. Equity 166%
MARKET CAP: $2.8 trillion (Large Cap) 21.4% 25.4% 35.0% 26.2% 26.5% 42.8% 45.5% 66.3% 127.1% 167.7% 132% 150% Retained to Com Eq 137%
CURRENT POSITION 2021 2022 7/1/23 29% 28% 22% 27% 26% 23% 26% 25% 15% 15% 16% 16% All Div’ds to Net Prof 17%
($MILL.)
Cash Assets 62639 48304 62482 BUSINESS: Apple Inc., established in 1977, is one of the world’s Pay, and a host of digital content from the popular iTunes store and
Receivables 26278 28184 19549 largest makers of PCs and peripheral and consumer products, such other portals. Research and development: 6.7% of ’22 sales. Has
Inventory (FIFO) 6580 4946 7351 as the iPhone smartphone, the Apple Watch, the iPad tablet, and its approximately 164,000 employees. Off./dir. own less than 1.0% of
Other 39339 53971 33277
Current Assets 134836 135405 122659 Mac line of personal computers, for sale primarily to the business, common stock; Vanguard, 8.0%; BlackRock, 6.4% (1/23 Proxy).
Accts Payable 54763 64115 46699 creative, education, government, and consumer markets. It also CEO: Tim Cook. Inc.: CA. Addr.: One Apple Park Way, Cupertino,
Debt Due 15613 21110 11209 sells operating systems, services like iCloud storage and Apple CA 95014. Tel.: 408-996-1010. Internet: www.apple.com.
Other 55105 68757 67055
Current Liab. 125481 153982 124963 Apple’s latest financial results were a ord revenues, with paid subscriptions
bit of a mixed bag, but the overall recently topping one billion. This marked
ANNUAL RATES Past Past Est’d ’20-’22 trend is improving. June-quarter sales an increase of 150 million over the past 12
of change (per sh) 10 Yrs. 5 Yrs. to ’26-’28
Sales 17.5% 14.5% 10.0% slipped 1.4% year over year, however this months, and a near doubling from three
‘‘Cash Flow’’ 17.5% 15.5% 10.0% was an improvement compared to the last years ago. Also, the company’s installed
Earnings 17.0% 17.5% 10.5% two periods. Also, profit comparisons base of active devices are at all time highs
Dividends -- 9.5% 10.5%
Book Value 1.5% -9.5% 10.5% turned positive, with earnings per share in every geographic market, which augurs
increasing 5% year over year. well for continued expansion of this
Fiscal QUARTERLY SALES ($ mill.) A Full
Year The company appears poised to close higher-margin revenue stream.
Ends Dec.PerMar.Per Jun.Per Sep.Per Fiscal
Year out the year on a positive note, and Reports of a potential ban in China
2020 91819 58313 59685 64698 274515 carry the momentum into fiscal 2024. raised some concerns. China was sup-
2021 111439 89584 81434 83360 365817 (Year ends September 30th.) Apple contin- posedly going to block the use of iPhones
2022 123945 97278 82959 90146 394328 ues to face a number of headwinds, includ- by government-backed agencies and corpo-
2023 117154 94836 81797 90263 384050
2024 120500 98000 91500 99000 409000 ing unfavorable currency effects, inflation, rations. About one-fifth of Apple’s total
Fiscal Full
and higher borrowing costs for consumers sales are generated there. However, as
EARNINGS PER SHARE A B and businesses. However, several positive most of the phones are made at Chinese
Year
Ends Dec.Per Mar.Per Jun.Per Sep.Per Fiscal
Year factors give us confidence that sales and factories, the move appeared to be some-
2020 1.25 .64 .65 .73 3.28 earnings comparisons will be favorable in what counter-intuitive. More recently, a
2021 1.67 1.40 1.30 1.24 5.61 the quarters ahead. In addition to strong Chinese Government spokesperson an-
2022 2.10 1.52 1.20 1.29 6.11
2023 1.88 1.52 1.26 1.39 6.05 services growth (see below), the company nounced that there was no ban on Apple
2024 2.10 1.65 1.40 1.45 6.60 continues to win new customers. In the products or any other phone brands.
latest quarter, more than half of those Most investors will want to wait for a
Cal- QUARTERLY DIVIDENDS PAID E Full that purchased iPads and Apple Watches better entry point. Reflecting Wall
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
were new to the products. Meanwhile, the Street’s support for tech stocks this year,
2019 .183 .193 .193 .193 .76 iPhone set a new record for switchers. the shares are up more than 40% from
2020 .193 .205 .205 .205 .81 Subscription services remain a key their 52-week low. As a result, upside
2021 .205 .22 .22 .22 .87
2022 .22 .23 .23 .23 .91 avenue for growth. As a whole, the potential is below average at this juncture.
2023 .23 .24 .24 Services segment continues to achieve rec- Mario Ferro September 22, 2023
(A) Fiscal year ends last Saturday in Septem- tober. (C) In millions, adjusted for splits. (E) New dividend policy adopted 3/12. Pay- Company’s Financial Strength A++
ber. (B) Diluted earnings. Quarters may not (D) Depreciation on accelerated basis. ments typically made in February, May, Au- Stock’s Price Stability 80
add to total due to rounding/changes in the gust, and November. Price Growth Persistence 100
share count. Next earnings report due late Oc- Earnings Predictability 85
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