Apple is the world’s largest maker of PC’s and peripheral
consumer products (iPod, iPad, iPhone) to business, consumer, education and
government markets. It has grown
earnings at a 50%+ rate over the last five years and raised its dividend per
share from $.38 in 2012 to $1.81 in 2014.
Return on equity has consistently been above 30%. While APPL is unlikely to sustain that record
over the long term, it nonetheless, should continue to grow at an above average
pace because:
(1) strong iPhone sales, especially in the emerging
markets,
(2) cost controls,
(3) acquisition of Beats Electronics,
(4) new product introductions,
(5) share buybacks.
Negatives:
(1) highly competitive industry,
(2) currency fluctuations.
Apple is rated A++ by Value Line, has a 19% debt to
equity ratio and its stock yields approximately 1.8%.
Statistical Summary
Stock
Dividend
Payout # Increases
Yield Growth Rate
Ratio Since
2012
AAPL
1.8%
13%
27%
2
Ind Ave 1.8
16*
25
NA
Debt/
EPS Down
Net Value Line
Equity
ROE Since 2004
Margin Rating
AAPL
19%
31%
1
20% A++
Ind Ave
24
16
NA
8
NA
*many companies in AAPL industry do not pay a
dividend.
Chart
Note: AAPL
stock made great progress off its January 2009 low, quickly surpassing the
downtrend off the December 2007 high (straight red line) and the November 2008
trading high (green line). Long term, it
is in an uptrend (blue lines).
Intermediate term it is in an uptrend (purple lines). The wiggly red line is the 50 day moving
average. The Aggressive Growth Portfolio
owns a 50% position in AAPL. The upper
boundary of its Buy Value Range is $105; the lower boundary of its Sell Half
Range is $190.
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