Apple Inc. (NASDAQ: AAPL)
Financial Analysis | April 20, 2025
Company Overview
Apple Inc. stands as one of the world's most iconic technology companies, offering a tightly integrated ecosystem of devices, operating systems, and services. With over four decades of innovation, Apple has maintained leadership through its flagship hardware (iPhone, Mac, iPad, Apple Watch, AirPods), in‑house chips (M‑series), and a rapidly growing services segment. The brand's ecosystem continues to drive high customer retention and strong global demand.
Financial Highlights (TTM as of Dec 28, 2024)
Revenue
$395.76B
↑2.61% YoY
Net Income
$96.15B
↓4.72% YoY
EPS (Diluted)
$6.28
↓2.17% YoY
Free Cash Flow
$98.30B
↓8.02% YoY
Market Cap
$2.96T
PE Ratio (TTM)
31.37
Forward PE
26.93
Dividend Yield
0.51%
Apple's top‑line growth remains steady, driven by its services division and resilient hardware sales. However, elevated costs and macro headwinds have led to modest profit contraction. Still, profitability metrics like ROE and FCF remain among the highest in the industry.
Segment & Margin Analysis
Apple continues to benefit from a favorable shift toward higher‑margin services and software. The company maintains pricing power across its product lines, despite inflationary and FX pressures.
Valuation Metrics
PEG Ratio
2.52
P/FCF Ratio
30.10
EV/EBITDA
21.22
Price-to-Sales
7.58
Price-to-Book
44.38
Apple trades at a premium valuation, reflecting investor confidence in its durable cash flows, brand power, and ecosystem lock‑in. However, with slowing EPS growth, the PEG ratio suggests cautious optimism.
Balance Sheet Strength
Total Cash & Securities
$141.37B
Total Debt
$96.80B
Net Cash
$44.57B
Debt-to-Equity
1.45
Current Ratio
0.92
Apple maintains a net cash position and strong liquidity despite a sub‑1 current ratio. The balance sheet supports aggressive buybacks and dividend growth while retaining flexibility for strategic investments.
Stock Performance & Shareholder Returns
52‑Week Range
$164.08 – $260.10
Current Price
$197.00
52‑Week Change
+16.27%
Beta
1.26
Dividend Growth
+4.17%
Buyback Yield
2.65%
Total Shareholder Yield
3.15%
Apple's stock has shown resilience and outperformance amid tech sector volatility. Continued capital returns and strong institutional backing support investor confidence.
Risks & Opportunities
Risks
iPhone concentration (~48% of revenue)
Geopolitical supply chain risk (China, Taiwan)
Regulatory scrutiny, especially App Store practices
High valuation relative to growth
Opportunities
Expansion in services (iCloud⁺, Apple TV⁺, AI tools)
Enterprise and emerging market penetration
Wearables and health tech growth
AI integration across OS and hardware
Conclusion
Strengths
- Exceptional profitability and capital returns
- Consistent innovation and ecosystem depth
- World-class brand equity
- Bulletproof balance sheet
Concerns
- Slowing earnings growth
- High valuation leaves little room for error
- Supply chain and antitrust headwinds
Verdict
Apple remains a fortress of stability and innovation in tech. While valuation is elevated, its consistent FCF, strong ROE, and product roadmap support long‑term investment appeal—especially for those seeking a blend of growth and capital returns.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a licensed financial advisor.