Wk 4 - Apply: Signature Assignment: Shareholder Analysis [due Mon] Wk 4 - Apply: Signature Assignment: Shareholder Analysis [due Mon]
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FIN571-Apple.pptxWk2 Apply: Investor Presentation
Professor: Kimberly McCarrolle
Fin/751: Corporate finance
By: Christopher Hulse
Date:5/4/20
The company and its ticker symbol
AAPL is the ticker symbol for Apple
Apple is a prominent hardware and software company best know for it series of personal computers.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984
Apple has been in the Fortune 500 list for 37 years and has been in the top 10 last 7 years.
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Cash flow from operations
Apple cash flow from operating activities for the quarter ending March 31, 2020 was $30.516B, a 14.33% increase year-over-year
Apple cash flow from operating activities for the twelve months ending March 31, 2020 was $187.233B, a 8.87% decline year-over-year.
https://www.macrotrends.net/stocks/charts/AAPL/apple/cash-flow-from-operating-activities
Apple Cash Flow from Operating Activities 2006-2020 | AAPL
3
Price-to-earnings ratio
The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share (EPS) number.
The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure.
Apple PE ratio as of May 1,2020 is 22.67
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Stock dividends and the yield
Apple has a dividend Yield of 1.06 compared to the Computer – Mini Computers industry’s yield of 1.83
During the past 13 years, the highest dividend yield of Apple was 2.77.
The lowest dividend yield in the last 13 years is 0.38
Apple’s next dividend payment will be $0.77 per share.
https://www.gurufocus.com/term/yield/NAS:AAPL/Dividend-Yield-/Apple
5
Earnings per share (EPS) ratio
Earnings per share can be defined as a company’s net earnings or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options, and warrants
Apples EPS for the quarter ending March 31, 2020 was $2.55, a $3.66 increase year-over-year
Apples EPS for the twelve month ending March 31, 2020 was $12.79, a 7.21% increase year-over-year.
https://www.macrotrends.net/stocks/charts/AAPL/apple/eps-earnings-per-share-diluted
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Revenue estimates for the next 12 months
During the current quarter Apple stated that revenue would not meet expectation due to the coronavirus. The forecast was for revenue of as high as $67 Billion. The company was not specific about the new figure because it’s not know yet.
https://finance.yahoo.com/quote/aapl/analysis/
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Revenue from the previous 3 years
Apple annual revenue for 2019 was $260.17B, a 2.04% decline from 2018
Apple annual revenue for 2018 was $265.59B, a 15.86% increase from 2017
Apple annual revenue for 2017 was $229.23B, a 6.3% increase from 2016
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Statement of cash flows
Apples Cash Flow from Operations for the quarter ending March 3, 2020 was $13,311M a 12.58% increase of 1.675m year over year
Apples Cash Flow from Operations for the last 12 months ending March 3, 2020 was 75.373m a 8.45% increase of 6.369m year over year.
https://www.koyfin.com/company/AAPL/cash_flow_operations
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Average trade volume
Apple’s 30-Day Average Daily Volume as of May 1, 2020 is 47.14M
https://ycharts.com/companies/AAPL/average_volume_30
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Current stock price
https://www.marketwatch.com/investing/stock/aapl
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Market cap for the company
Apple became the world’s first company to record a market capitalization of $1Trillion, and subsequently passed the $1.3 trillion threshold in December 2019.
Apple’s Market Cap as of May 4, 2020 is 1.28 Trillion
https://ycharts.com/companies/AAPL/market_cap
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Analysts’ recommendations for the stock
Apple’s got off to a strong start this year after reporting solid December quarter earnings and a record high for the stock.
But with the outbreak of the coronavirus and its spread across the world, Apple said it won’t be able to meet its revenue guidance for the March quarter.
Apple’s stock has fallen nearly 19% from its record high.
Analysts said there will be continued near-term impact from the virus but believe Apple will be able to reach record highs in the next 12 months.
I would recommend to buy Apple’s stock since the stock rebounded since the coronavirus crash the stock market in late February.
https://www.cnbc.com/2020/03/10/coronavirus-apple-shares-looked-unstoppable-in-2020-until-the-outbreak.html
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References
Apple 30-Day Average Daily Volume. (2020, May 1). Retrieved from www.ycharts.com: https://ycharts.com/companies/AAPL/average_volume_30
Apple Cash Flow from Operating Activities 2006-2020 | AAPL. (2020). Retrieved from www.macrotrends.net: https://www.macrotrends.net/stocks/charts/AAPL/apple/cash-flow-from-operating-activities
Apple Dividend Yield. (2020). Retrieved from www.gurufocus.com: https://www.gurufocus.com/term/yield/NAS:AAPL/Dividend-Yield-/Apple
Apple Inc. (2020, May 4). Retrieved from www.marketwatch.com: https://www.marketwatch.com/investing/stock/aapl
Apple Inc. (AAPL). (2020). Retrieved from finance.yahoo.com: https://finance.yahoo.com/quote/aapl/analysis/
Kharpal, A. (2020, March 10). Apple got off to a strong start and looked unstoppable in 2020. Then the coronavirus broke out. Retrieved from www.cnbc.com: https://www.cnbc.com/2020/03/10/coronavirus-apple-shares-looked-unstoppable-in-2020-until-the-outbreak.html
