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| Comapny name |
: |
Apple Inc |
| Share |
: |
AAPL |
Analysis date |
: |
26-Oct-2007 |
| Stock exchange |
: |
NASDAQ |
Rating |
: |
7/9 |
|
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
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2) Sales has increased Consistently over 5 years? |
Yes |
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3) Cash Flow has increased consistently over 5 years? |
Yes |
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4) What is the historical/projected EPS growth rate?
|
24.00% |
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|
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| 2 |
Sunstainable Competitive Advantage |
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1) The company has a sustainable competitive advantage? |
Yes |
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Yes, Apple is a worldwide technology company and has a cult following of customers. They are best known for their bestselling products and services namely, iMac, iPod, iPod Nano, iTunes, and iPhone. |
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| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
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Yes, Apple continues to create new and innovative products which take the marketplace by storm. Apple is also set to increase its PC market share even further as its iMacs now run on intel chips and also have the option of running Microsoft Windows. This change has the potential for consumers to switch over from a Wintel computer to a Mac. |
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| 4 |
Conservative Debt |
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1) The company has Long Term Debt <3x Net Profit? |
Yes |
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2) Long-Term Debt is $
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0 |
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3) Net Profit is $
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1,989.0 Million |
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|
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| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
No |
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2) The company has ROA>7% over 5 years? |
No |
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|
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| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
Yes |
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|
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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|
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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$2,220.0 Million (Cash Flow) |
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2) Projected Earnings Growth Rate
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24.00% |
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3) Number of shares outstanding
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877 million |
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4) Intrinsic Value
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$152.00 |
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5) Share price is below intrinsic value? |
No |
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
Yes |
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2) Stock price at a dip on a uptrend |
No |
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3) Stock price above 20 or 50 day moving average |
Yes |
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