Apple Inc (AAPL, Financial) has recently captured the attention of investors and analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $215.36 and a recent daily gain of 3.96%, coupled with a three-month increase of 24.29%, Apple Inc stands out as a formidable player in the tech sector. The GF Score of 96 out of 100 underscores its potential for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects: financial strength, profitability, growth, GF Value, and momentum. Each component is crucial and weighted differently, reflecting its impact on stock performance. Apple Inc's scores are particularly strong in profitability and growth, both rated 10/10, while its GF Value and momentum scores are a solid 7/10. This blend of high scores across different metrics positions Apple Inc for market outperformance.
Understanding Apple Inc's Business
Apple Inc, with a market cap of $3.3 trillion and annual sales of $381.62 billion, is a global leader in technology. The company's main revenue driver is the iPhone, complemented by other products like Mac, iPad, and Apple Watch, which integrate into an extensive software ecosystem. Apple's innovative approach extends to new services like streaming video and augmented reality. Notably, Apple designs its software and semiconductors and collaborates with manufacturers like Foxconn and TSMC, ensuring a high level of control over its production and supply chain.
Financial Strength of Apple Inc
Apple Inc's financial robustness is reflected in its Financial Strength Rank of 7/10. The company boasts an impressive Interest Coverage ratio of 59.12, indicating its ability to easily manage interest expenses. The Altman Z-Score of 9.58 further highlights its low risk of financial distress. Additionally, a Debt-to-Revenue ratio of 0.27 showcases Apple's strategic debt management, enhancing its financial stability.
Profitability and Growth Metrics
Apple Inc's Profitability Rank shines at 10/10. The company's operating margin has consistently improved over the past five years, reaching 29.82% in 2023. This trend is supported by a rising Gross Margin, which stood at 44.13% in 2023, indicating efficient revenue conversion into profit. Apple's Piotroski F-Score and Predictability Rank further affirm its operational excellence and reliability.
Conclusion: Apple Inc's Market Position and Future Outlook
Considering Apple Inc's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the company's unparalleled position for potential market outperformance. Investors looking for robust investment opportunities may find Apple Inc an attractive option due to its consistent performance and strategic market advantages.
For more insights and to discover other top-performing stocks, consider exploring our GF Score Screen exclusive to GuruFocus Premium members.
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.
