iPhone 5s: forward thinking, iPhone 5: the biggest yet
Employees: 110 000, globally
Fiscal year ends: last Saturday of September
Headquarter: Cupertino, California
Products: designs, manufactures & markets mobile communication
devices, personal computers & music players, sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications.
Rating (long-term): Rating (long-term): AA+(S&P), Aa1(Moody’s)
Competitors: Samsung, Google, Amazon, Lenovo, Microsoft
With innovative hardware, software, and services that deliver an amazing user experience, Apple empowers today’s modern workforce to do something truly great.
Strategy: is broad differentiation.
Strategic objectives: continuous innovation, Apple must develop innovative products to stand out against mojor competitors.
As a result, total R&D expense was $8.1 billion, $6.0 billion and $4.5 billion in 2015, 2014 and 2013 respectively.
Apple’s focused product portfolio and R&D initiatives aim at long-term success and survival.
Area: the company’s domestic and international net sales accounted for 35% and 65%, respectively, of total net sales.
Based on the analysis of the fundamentals, AAPL seems to be one of the best-value IT names in the market.
Apple’s earnings dropped in the most recent quarter on a year-over-year basis but revenue and EPS remain very solid.
Profitability is High+:
The Company paid a total of $11.4 billion and $11.0 billion in dividends during 2015 and 2014 respectively.
The dividend growth over the past three years has been solid and the company has shown a dedication to returning capital to shareholders.
Additionally, buybacks create indefinite dividend growth potential.
Financial health is High:
Apple still sits on a pile of cash, i.e. solvency ratios are favorable.
Valuation price: $144.87 => has 51% potential upside based on fundamentals.
Last stock splits: 7:1 (09.06.2014), 2:1 (28.02.2005), 2:1 (21.06.2000)
Share repurchase: positive, $175 billion share repurchase program that is expected to be completed by March 2018. The company’s share repurchase programs have ensured a steady decrease in share count.
1976: April 1, Apple was founded
1977: January 3, Apple was incorporated in the state of California
1977: April 16, Apple II was presented to the public at the first West Coast Computer Faire
1980: May 19, Apple III was released
1980: December 12, Apple’s initial public offering at $22.00 per share.
1983: October, Macintosh 128k was announced to the press
1987: February 19, Apple registered the “Apple.com”
1987: May 11, Apple issued its first corporate stock dividend
1996: December 10, Apple purchased Steve Jobs’ company, NeXT
1997: July 9, Gil Amelio was ousted as CEO of Apple, Jobs stepped in as the interim CEO
1997: November 10, Apple introduced the Apple Store
2005: April 29, Apple released Mac OS X “Tiger” to the general public
2007: January 9, Apple Computer, Inc. shortened its name to simply Apple Inc.
2007: June 29, The first version of the iPhone became publicly available
2008: July 11, iPhone 3G became available
2009: June 8, Apple announced the iPhone 3GS
2010: January 27, Apple iPad was announced
2011: February 10, iPhone 4 was made available
2011: March 2, Apple unveiled iPad 2
2011: August 24, Steve Jobs resigned his position as CEO
2014: September 9, Apple announced the Apple Watch
Disclosure: Billion Trader has no positions in any stocks mentioned, the valuation is based on the own model developed and tested by Billion Trader. Billion Trader is not responsible for any loss arising from information provided.