NASDAQ:AAPL
$224.12
(3/17 4:00PM)
-0.1%
| Open | $224.9 |
Mkt Cap | $203.5 Billion |
| High | $226.45 |
52Wk High | $227.73 |
| Low | $223.27 |
52Wk Low | $103.89 |
| Volume | 16.1 Million |
Avg Vol 10D | 18.6 Million |
Ockham's Rating/Recommendation Summary
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AAPL Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, AAPL the high and low end of the Price to Sales per share ratios are 4.62x and 2.16x respectively.
Notice that AAPL's current Price to Sales per share ratio is 4.89x, which is well above its historical average. This means that AAPL looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 44% just to return AAPL to its historical average.
AAPL Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently AAPL is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for AAPL to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 40.42 and a 19.68 low over the same period.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AAPL? From the Ockham perspective, we are looking specifically at AAPL to see if the market is recognizing the huge disparity between AAPL's past stock price to Cash Earnings ratio to today's levels. At a difference of 17% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AAPL. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
AAPL Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. AAPL may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As AAPL more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
Income Investors: A Discussion of AAPL and Dividends on Mad Money
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of AAPL's dividends recently on Mad Money.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Mad Money said about APPLE, INC.
Learn About RazorWire?AAPL Having an Active Day in News, Now on Mad Money
Something important is going on with AAPL today, as it is getting a lot of attention on business television and influential blogs.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Mad Money said about APPLE, INC.
Learn About RazorWire?Stocks to Watch: AAPL Heavily Covered on Mad Money
We are observing a lot of attention being paid to AAPL in the news, so if you hold the stock you may want to take a look at what is going on.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Mad Money said about APPLE, INC.
Learn About RazorWire?Mad Money: A Discussion on High Quality Stocks and Apple, Incorporated
As leading economic indicators, blue chip stocks often receive a lot of attention from the media. Recently, Mad Money talked about AAPL in their discussion of economic bellwethers.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Mad Money said about APPLE, INC.
Learn About RazorWire?More News Than Normal on AAPL from Taking Stock
Something important is going on with AAPL today, as it is getting a lot of attention on business television and influential blogs.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Taking Stock said about APPLE, INC.
Learn About RazorWire?Stocks to Watch: AAPL Heavily Covered on Fast Money
Something important is going on with AAPL today, as it is getting a lot of attention on business television and influential blogs.
We noticed recently that in comparison to all other stocks we analyze in the news; AAPL has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Apple, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… And the thing about APPLE is this is a company that just keeps doing things right. It's just absolutely extraordinary. But in order for the stock to continue to move from here, ... …”
Be Aware There is a Lot of News Today On AAPL and This Instance Comes from Fast Money
AAPL has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Apple, Incorporated will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AAPL has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AAPL.
“… Making the case for APPLE approaching $300 a share. Only problem, well, one share costs you 224 bucks. Just about. Solutions? Options. Time for "fast action. …”
Stocks in the News: Apple, Incorporated Among the Twenty Most Discussed Stocks
AAPL has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Taking Stock said about APPLE, INC.
Learn About RazorWire?Be Aware There is a Lot of News Today On AAPL and This Instance Comes from Fast Money
We are observing a lot of attention being paid to AAPL in the news, so if you hold the stock you may want to take a look at what is going on.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Apple, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AAPL. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AAPL has been less covered in the news compared to the rest of our universe of stocks.
“… plus, the ipad release is rapidly approaching, and some analysts are calling for APPLE to hit 300 bucks a share. How to cash in on this tech titan without breaking the bank. …”
Heard on WSJ Marketbeat: CEO of AAPL Discussed
Staying in touch with the latest management news is one way we are keeping our clients informed. Notice, RazorWire has a news capture related to AAPL's CEO.
We noticed recently that in comparison to all other stocks we analyze in the news; AAPL has received less coverage from the financial media in business television and blogs. Apple, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Thomson Reuters A bit of a selloff in APPLE shares is weighing on the Nasdaq Wednesday afternoon. Some softness in shares of Steve Jobs’ company seemed to pick up steam at about ... …”