Apple: Industry Giant Not Worth The Price

Nov. 16, 2022 4:42 PM ETApple Inc. (AAPL)GOOG, GOOGL, INTC, META, MSFT, SONY, SNEJF, SSNNF, SSNLF115 Comments
William Cao profile picture
William Cao
138 Followers

Summary

  • Apple Inc.'s financials are historically growing at below industry average rates; Seeking Alpha ranks growth at a "D+".
  • Apple insiders have significantly sold $810.145 million, possibly confirming damaging headwinds ahead.
  • The poor dividend yield ranks below the industry, SPY, and treasury rates.
  • My 2 DCF models resulted in a baseline 24.7% downside for Apple from current levels under conservative assumptions.
  • Tim Cook and Apple's high representation in various benchmark can be catalysts for growth, but is this enough?

Apple stores in the evening, busy Apple stores and people on the road

nayuki

Introduction

Apple Inc. (NASDAQ: AAPL) is an American multinational technology company most known for its iOS smartphones and MacOS personal computers in the Technology Hardware, Storage and Peripherals Industry. As seen in the graph below, AAPL stock

Chart
Data by YCharts
Chart
Data by YCharts

Chart
Data by YCharts
Screenshot of Revenue

Seeking Alpha

Chart
Data by YCharts
Screenshot of EBITDA growth

Seeking Alpha

Chart
Data by YCharts
Screenshot of EPS Diltued Growth

Seeking Alpha

MarketBeat screenshot of Apple's insider activity

MarketBeat

Screenshot of Apples Dividends from source

Apple's Historical Yield (WallStreetZen)

MarketBeat screenshot of listed companies

WallStreetZen

Screenshot from MacroTrends

Shaded regions indicate recessions (MacroTrends)

Screenshot of Apple's Shares Outstanding

Apple's Shares Outstanding (MacroTrends)

My DCF Model

5-Year Shares (Google Sheets)

My DCF Model

10-Year Shares (Google Sheets)

Screenshot of Invesco QQQ Trust Report

Invesco QQQ Trust

Screenshot of Invesco QQQ Trust Report

Invesco QQQ Trust Report

Screenshot of weightings from etf.com

ETF

This article was written by

William Cao profile picture
138 Followers
Aspiring investment analyst tracking small and large-cap stocks. I provide an extra avenue of value insight to readers through my useful and coherent content in my articles.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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