AAPL (APPLE)
- P/E: 17.1
- GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.2
- SECTOR: ELECTRONIC TECHNOLOGY
- ASSETS-LIABILITIES: 1.67
- DIVIDEND: .57%
Apple is a technology
company famous for their cell phones, tablets, and music store. The
company has a solid balance sheet, and a history of earnings growth.
The company reported 5/2/2017.
Both revenues and gross
margins increased, as well as the expenditure on R&D. Therefore,
the company posted quality EPS growth in the past quarter. The
revenues and EPS beat wall street expectations, and revenue missed
estimize's consensus expectation. Cash flows, and accounts
receivable, however, decreased in the last quarter. Inventory, which
some consider to be a red flag for technology stocks, also increased.
Tim Cook has been employed
by Apple since 1998, and held the title of CEO since 2011. He is
also on the board of directors with Nike. According to IDC, Apple's
market share in the cell phone business has been steadily declining
since 2015. The iPhone is the most successful product made by the
company. With its increase in investment in R&D, the company is
likely trying to drive innovation to recapture market share. If
iPhones can gain popularity again through innovation, the company has
a large amount of room for growth. Apple has a low price-to-earnings
multiple, signifying that the share price is stable with the current
decline in market share, so the company's share price could rise
exponentially, if Apple's business, and expectations for future
business, can grow, rather than shrink, again.
Prior to its 6-for-1 stock
split, Apple hit its high in 5/2015 in the low $130s (in comparable
share price terms), and has finally surpassed these levels, 2 years
later. The company has a low price-to-earnings multiple, which
coincides with its slowed growth, and has emboldened its attempts to
increase business through increased R&D. Revenue and income
increased in the last quarter, which could be a sign that the
business is expected to have a good growth rate, making its share
price undervalued going forward.
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