🍎 APPLE INC: ANALYSIS 🍎

🍎 APPLE INC: ANALYSIS 🍎

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts

Last report: 30 June 2024

Based on a sample of the last year [June/24 TTM], its average margins have been:
- Gross margin: ≈ 45.2%
- Operating margin: ≈ 30.7%
- EBITDA margin: ≈ 34.0%
- Net margin: ≈ 26.3%

Pros:
- Strong margins and rations
- Stable growth with a well-established brand and loyal customers
- Very healthy net debt

Cons:
- Sales forecasts decline after non-innovative products
- Doubts about the development of AI (it is just another search engine) as a competitive advantage
- Reduction of EPS (thanks to decreasing in net income)

Based on the last report, their normalized annual EPS was ≈ $6.70 USD and its last average ROIC [TTM] was ≈ 74.2%. If an annual average Forward PER 30 is set as a benchmark with an EPS intensity of ± 0.2489x, the potential forward spread target for the next 12 months could be:
- Optimistic: ≈ $251.24 USD
- Neutral: ≈ $201.17 USD
- Pessimistic: ≈ $151.10 USD
At least, an EPS of $1.44 USD is required for the next quarter, to keep the metrics.

In other hand, if an annual average Forward EV/EBITDA 25 is set, an EBITDA increases of ± 6%, a Net Debt increases of -15.2%, a Dividends increase of 4.3% and Shares Outstanding increases of ± 2.14%, the potencial spread price target for the next 12 months could be:
- Optimistic: ≈ $230.38 USD
- Neutral: ≈ $210.72 USD
- Pessimistic: ≈ $193.41 USD

Finally, according to its current P/S ratio, a possible spread might be at:
- P/S 10: ≈ $253.61 USD
- P/S 5: ≈ $126.80 USD

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M.F. J. Joel Padilla
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Copyright: Joel Padilla 2024