Fundamental analysis · SEC EDGAR · TTM through 27/06/2026

Fundamental analysis of Apple Inc.

AAPL · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

86

out of 100

Apple Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 119.9%) with wide margins (net margin 27.6%) and a business that keeps growing (9.7% a year). On fundamental quality it scores 86 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +9.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Apple designs and sells premium consumer hardware —iPhone, Mac, iPad, Watch— alongside an ecosystem of services (App Store, iCloud, Apple Pay). The iPhone remains the heart of its business.

What will shape its future

  • The loyalty of its ecosystem, which retains users and sustains growth in services, its most profitable segment.
  • Its reliance on the iPhone and upgrade cycles in a mature smartphone market.
  • China, both as a sales market and for its supply chain, and its progress (or lag) in AI.

Breakdown by area

I.Growth
71

EPS growth: 18.5% · Revenue growth: 9.7%

II.Profitability
89

Net margin: 27.6% · ROE: 119.9% · ROIC: 85.2%

III.Financial health
95

Net debt/EBITDA: 0.25x · FCF: 29.3%

Source: SEC EDGAR · TTM through 27/06/2026

The score includes +1 for dividend strength: 7 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 74%
ROEbeats 97%
Growthbeats 35%
Cash generationbeats 71%
Less debtbeats 62%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Apple Inc. strengths

  • Outstanding return on equity (ROE of 119.9%): it puts shareholder capital to good use.
  • Excellent free-cash-flow generation (FCF margin of 29.3%): profit turns into real cash.
  • Exceptional net margin (27.6%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (18.5% annualized).

Apple Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Apple Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020274,51557,41173,36569,424
2021365,81794,68092,95383,779
2022394,32899,803111,44386,441
2023383,28596,99599,58475,138
2024391,03593,736108,80766,719
2025416,161112,01098,76754,744

Between 2020 and 2025, revenue went from $274,515M to $416,161M (+52%) and net income went from $57,411M to $112,010M (+95%). Meanwhile, its margins have widened (from 21% to 27%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended June 27, 2026, versus the nine months ended June 28, 2025 (SEC filings):

  • Revenue+16.2%
  • Net income+20%

What changed with the June 27, 2026 results

Compared with the previous close (March 28, 2026), this is what moved in its accounts:

  • ROE115.1%119.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.02

per share, yearly

13.8% of earnings

Payout

at least 7 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Apple Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Apple Inc. a good company to invest in?

In terms of business quality, Apple Inc. scores 86 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Apple Inc. a profitable company?

Very. Apple Inc. shows a net margin of 27.6% and an ROE of 119.9%, typical of a highly profitable business.

Does Apple Inc. have a lot of debt?

Not particularly. Its net debt is 0.25 times its EBITDA, a low level.

Is Apple Inc. growing?

Its revenue has grown 9.7% annualized in recent years and its earnings per share 18.5%.

Does Apple Inc. generate cash?

Yes. It converts about 29.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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