27 March, 2020 (16:00:00 EST)

Apple loses $US42.4 billion in MCap, steepest heavyweight fall in Computer integrated systems sector


Apple Inc. (NASDAQ:AAPL), the NASDAQ's largest Computer integrated systems company by market cap, has dropped $US9.69 (3.8%) from its previous trading session to close at $US247.74. Compared with the NASDAQ-100 Index which fell 308.8 points (3.9%) in the day, the relative price increase was 0.1%. The fall was exacerbated by robust volume of 1.6 times the average daily volume of 32.7 million shares. It posted the steepest fall in MCap with the most influence on the Computer integrated systems sector. There were 50,946,500 shares worth $US12.6 billion traded today.

TODAY'S BUZZ

Apple announces COVID-19 website and app in partnership with CDC and the White House: CNBC
Apple Can't Distort This Reality: The Wall Street Journal

PEOPLE'S NEWS
March 27 Apple Director Albert A. Gore Jr.'s value of investment increases by $6.1 million in the past quarter
Apple (NASDAQ:AAPL) Director Albert A. Gore Jr. held 82,125 shares three months ago and the price was US$289.22. Albert A. Gore Jr. now holds 115,868 shares worth US$29.8 million at the last price of US$257.43, a rise in value by US$6.1 million (25.6%).

Stock Summary
Today's close (USD)247.74
52-Week Range (USD)168.7-327.2
SectorComputer Integrated Systems sector
EPS Growth % (y.o.y)19.4
Shares Outstanding4,375,480,000
Market Cap$US1,084 billion

HIGHLIGHTS IN TODAY'S REPORT:

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 RELATED NEWS

RECAP FROM PREVIOUS REPORT (UPDATED AT THE LAST PRICE OF $US247.74):

SECTION 5 THE PAST WEEK

SECTION 6 ONGOING BULLISH PARAMETERS

SECTION 7 ONGOING BEARISH PARAMETERS

SECTION 8 REPORTED BUYING AND SELLING

SECTION 9 SUMMARY FINANCIALS

SECTION 10 CORPORATE PROFILE

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

[Volume Index or VI in brackets; 1 is average]
+ Nasdaq: AAPL.NASDAQ 50,946,500 [VI of 1.6] volume 99.85% of aggregate. Price: $US247.74.
+ Xetra: APC.ETR 77,963 [VI of 1.5] volume 0.15% of aggregate. Price: EUR231.05. Using the current exchange rate of EUR1 equals 1.1063USD, The shares are at a 3.2% premium to the close price on Nasdaq.
+ Aggregate volume: there were 51 million shares of Apple worth $US12.6 billion traded today. The aggregate volume was 1.6 times average trading of 32.7 million shares.

SECTION 2 APPLE BEARISH SIGNALS

2.1 Overvaluation [compared with sector average]:
MCap/Total Assets
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

2.2 Overvaluation Indicators and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
P/E * P/NTA232.05In Bottom 7%
Dividend Yield %1.2In Bottom 20%
Price to Sales4In Bottom 22%

2.3 Downtrend:
Price/Moving Average Price and MACD:
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 251.72 minus the 26-day EMA of 266.24 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.
+ The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 50 days this ratio has been under 0.9 just nine times suggesting a support level. The 50-day EMAP has decreased to $US277.59. A decrease is another bearish indicator.
+ The price to 200-day MAP ratio is 1.0. In the past 200 days this ratio has been under 1.0 just five times suggesting a support level. The 200-day MAP has decreased to $US248.83. A decrease is another bearish indicator.
Past Month:
+ The price tumbled 9.3% in the past month.
+ Falls to Rises: in the past month the number of falls outnumbered rises 14:8 or 1.8:1.

SECTION 3 APPLE BULLISH SIGNALS

3.1 Undervaluation [compared with sector average]:
Earnings Yield
+ Earnings yield of 5.2% is 6.4 times the 10-year bond yield of 0.81%.
Dividend Yield
+ To quote Benjamin Graham: "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 1.5 times the triple-A bond yield of 0.8%.
+ The relative yield of AAPL, defined by its yield of 1.2%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 1.1% is 112.7%. This suggests Apple stock is undervalued in dividend yield terms.

3.2 Undervaluation Indicator and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
* EV/EBITDA16.6In Top 21%

* Enterprise value of $US1,090 billion is divided by Earnings before interest tax depreciation and amortization of $US65.7 billion.

3.3 Uptrend:
Price/Moving Average Price:
+ The Price/MAP of 1.0 for AAPL is higher than the Price/MAP for the NASDAQ-100 Index of 0.97.
Past Week:
+ In the past week, volume was 2.1 times average and the shares were up 8.1%. Friday's close price is at a 1.9% premium to its 5-day Volume Weighted Average Price (VWAP) of $US243.16.
Past Month:
+ In the past three months the stock has hit a new 52-week high fourteen times, pointing to a significant uptrend.
Rising Relative Strength (1mo, 3 mo):
+ In the NASDAQ market of 2,410 stocks and 11 units traded today, the stock has a 6-month relative strength of 89 which means it is beating 89% of the market.
+ Also, the relative strength percentile is Rising at 79 for 3 months and 80 for 1 month.

3.4 High Price Performance Indicators and rank of Apple in the NASDAQ market:
DescriptionAAPL ValueRank In Market
Today's Trading Turnover$US12.6 billionIn Top 1%
MCap$US1,084 billionIn Top 1%

SECTION 4 APPLE RELATED NEWS

Corporate Bonds

+ Apple Inc bond keeps rising: up 29.2% in 4 days; Implied Yield falls to 2.59%
Apple bond (CUSIP: 037833AL4) price, extended its gains Thursday, rising an additional $US7.15 (or 6.2%) to close at $US121.82. The bonds have soared $US27.54 (or 29.2%) over the past four trading days. The bond matures in 23 years and 2 months; its yield to maturity (YTM) has decreased by 165.1 basis point from 4.2% four days ago to 2.59%.

RECAP FROM PREVIOUS REPORT (UPDATED AT THE LAST PRICE OF $US247.74):

SECTION 5 THE PAST WEEK

5.1 Snapshot: Apple stock was up $US18.50 or 8.1% in the past week. Volume in the week was 2.1 times average trading of 163.3 million shares. It underperformed the NASDAQ-100 index in 3 out of 5 days. The price ranged between a low of 229.24 on Friday, Mar 20 and a high of 257.43 on Thursday, Mar 26.
DayAppleClose price [USD]Price change %Relative change %Comment
ThursdayAdds $US52.1 billion in MCap, top heavyweight rise in Computer integrated systems sector257.434.9-0.9VI*=1.9
WednesdayDecreases245.52-0.60.6VI*=2.3
TuesdaySoars 10.0% on high volume246.8810.02.2Top Rise; VI*=2.2
FridayDrops to six-month low on strong volume229.24-6.3-2.3Week-low of 229.24
Steepest Fall; VI*=3.1
ThursdayDown 3.2% in 2 days244.78-0.7-2.3VI*=2.1
[Volume Index (VI); 1 is average]
Note: The stock was untraded on Monday, Mar 23

+ Apple Inc. is placed 1416/2424 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 42.

5.2 Stock Buzz: Past Week
News DateHeadlinePublisher
Mar 26Huawei Unveils New High-End Phone Lineup, Targets Apple and SamsungInvezz
Mar 26Apple Donates 10 Million Surgical Masks in Bid to Slow the Spread of CoronavirusNasdaq
Mar 26BofA cuts Apple target, 2020 iPhone estimateSeeking Alpha
Mar 264 Reasons to Buy Apple Stock Right NowThe Motley Fool on MSN.com
Mar 26Apple Stock Rises 4%YAHOO!
Mar 26Edgewood Management LLC Acquires 2,890 Shares of Apple Inc. (NASDAQ:AAPL)theenterpriseleader.com
Mar 25Apple Shares Tank As Report Says New iPhone Launch Could Be Moved To Next YearBenzinga on MSN.com
Mar 254 Top Stock Trades for Thursday: AAPL, NKE, SPY, BABusiness Insider
Mar 25It Might Be Too Early to Consider Buying Apple StockInvestorPlace
Mar 25Apple Stock Dips Slightly After Removing Two Device LimitSchaeffersResearch.com
Mar 25Apple (AAPL) Received its Third Buy in a RowSmarter Analyst
Mar 25Technical Buy The Dip Bullish Momentum Trade and Trigger in Apple Inccmlviz.com
Mar 25Apple (NASDAQ:AAPL) Receives Coverage Optimism Rating of -1.22modernreaders.com

5.3 Volatility:
+ Apple is at a discount of 24.3% to its 12-month high of $US327.22 on February 12. It is also at a premium of 46.8% to the 12-month low of $US168.72 on June 03, 2019.

SECTION 6 ONGOING BULLISH PARAMETERS

6.1 Performance:
+ Return on Capital Employed 28.2% [28.0%].

6.2 Growth:
Quarterly Trend in Revenue, Net Profit and Net Profit Margin:
+ Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]
Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Dec 19 [Q1 vs Q4]43.462.5174.9
Sep 19 [Q4 vs Q3]1936.321.4


6.3 Low Debt Indicators:
+ The debt to equity ratio of 6.6% is under a safe benchmark figure of 50%. Moreover, it has improved from 11.2% a year ago.
+ Total Liabilities/EBITDA of 3.8 is comfortably below the Joseph Piotroski benchmark of 5.
DescriptionValueRank In Market
Debt to Equity0.1In Top Quartile


6.4 High Performance Indicators and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
EBITDA Margin %142In Top 3%
Return on Assets [ROA] %16.3In Top 7%


6.5 Past 4 Quarters Sequential EPS growth averaged 12.8%:
Quarterly ReportEPS ($US)Growth %
Q1/20205.0463.6
Q4/20193.0840.0
Q3/20192.2-10.9
Q2/20192.47-41.5
The most recent quarter (Q1/2020) showed a rise of 63.6% in sequential growth of Quarterly EPS. There have been two rises and two declines in the past 4 quarters. Average quarterly growth in the past 4 quarters was impressive at 12.8%.

6.6 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 20.1%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in AAPL would have produced a return of 34.8%.
AAPLClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Mar 27247.743.0833.21.734.8
1 Yr ago186.032.9210.71.712.5
2 Yrs ago167.982.5224.81.926.7
3 Yrs ago134.612.2835.92.338.2
4 Yrs ago99.052.08(13.4)1.8(11.6)

Close 5 years ago $US114.34

6.7 Increased VWAP
Past five years, 12 months ended Mar 27 (USD)
YearHigh PriceVWAPLow Price
2020327.22242.15168.72
2019228.67183.32139.57
2018178.41155.37134.06
2017136.68104.4184.37
2016123.81106.2585.4
In the past five years Volume Weighted Average Price (VWAP) has increased by 127.9% to $US242.15. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

6.8 Increased Average Daily Turnover
Past five years, 12 months ended Mar 27 (USD billion)
YearAverage Daily Turnover
20207.8
20196.0
20184.6
20173.5
20165.3
In the past five years, average daily share turnover has increased 47.9% to $US7.8 billion. This suggests increased liquidity.

6.9 Increase in Institutional Ownership
Quarter-endSeptember 30, 2019December 31, 2019
Holdings (%)55.759.9
As at December 31, 2019 Institutions held 59.9% of total shares on issue; an increase from 55.7% as at September 30, 2019.

6.10 Decrease in Insider Selling
In the past 5 years a total of 6,119,202 Apple shares worth $US895.8 million were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 1,223,840 shares per year. In the past year, insiders sold 631,512 shares, a decrease of 29.8% from the previous year.

SECTION 7 ONGOING BEARISH PARAMETERS

7.1 Performance:
+ Return on Assets 16.3% [16.9%].

7.2 Past 5 Years Annual EPS growth:
Annual ReportEPS ($US)Growth %
201911.97-0.3
201812.0129.6
20179.2711.0
20168.35-10.0
20159.2843.0
Average Annual Compounded rate of growth in EPS for the 5 years was impressive at 13.0%. There have been three rises and two declines in the past 5 years.

7.3 Declining ADVT Past five Years
Avg. Daily Volume Traded 12 months ended Mar 27, million shares
YearADVT
202032.7
201932.5
201829.2
201732.7
201649.7
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 34.3% to 32.7 million shares.

SECTION 8 APPLE REPORTED BUYING AND SELLING

8.1 Institutional Buying and Selling Quarter Ended December 31
Total reported Institutional buying = 86,565,082 shares
Total reported Institutional selling = 129,147,143 shares
Net reported institutional selling = 42,582,061 shares

8.2 Reported Holdings of Institutions as at Dec 31, 2019
Total = 2,620,839,644 shares
Market Value = $US767.8 billion
Institutions hold 59.9% of Issued Shares.

SECTION 9 APPLE SUMMARY FINANCIALS

9.1 Dividend History
Trailing 12 months dividend for the 12 months ended March 27 has improved from $US2.08 in 2016 to $US3.08 in 2020; there were no declines in the past 5 years. Dividends were up 5.5% for the 12 months ended March 27 from $US2.92 in 2019 to $US3.08 in 2020.

9.2 Financials Summary
Year ended SepFY2019FY2018FY2017
Sales (USD B)260.2265.6229.2
Pretax (USD B)65.772.964.1
Net (USD B)55.359.548.4
EPS (USD)11.9712.019.27
+ Net profit was down 7.2% from US$59.5 billion in 2018 to US$55.3 billion in 2019.
+ Earnings Per Share (EPS) was down 0.3% from $US12.01 to $US11.97.

9.3 Quarterly Report: Key Parameters
Quarterly Report Analysis Q1 2020: Apple EPS soars 64%

Release Date: January 29, 2020
Apple (NASDAQ:AAPL), announced EPS of $US5.04 for the quarter-ended 28 December 2019 [Q1/2020], up 63.6% sequentially from $US3.08 in the previous quarter [Q4/2019].

Quarter-ended28 Dec [Q1/2020]28 Sep [Q4/2019]29 Jun [Q3/2019]
EPS, $US5.03.12.2
Sequential growth in EPS %6440.0-10.9
Revenue, $US billion91.864.053.8
Sequential growth in Revenue %43.419.0-7.2
Net Profit, $US billion22.213.710.0
Sequential growth in Net Profit %6236.3-13.1

Compared with the previous corresponding period [PCP; Q1/2019], year-over-year [y.o.y.] EPS was up 19.4%, Revenue was up 8.9% and Net Profit was up 11.4%.
Quarter-ended28 Dec [Q1/2020]29 Dec [Q1/2019]
EPS, $US5.04.2
PCP growth in EPS %19.47.7
Revenue, $US billion91.884.3
PCP growth in Revenue %8.9-4.5
Net Profit, $US billion22.220.0
PCP growth in Net Profit %11.4-0.5

Major changes compared with previous corresponding period [Q1/2020 vs Q1/2019]:
Favourable Changes:
- Net profit up 11.4% from $US20.0b to $US22.2b
- Total revenue up 8.9% from $US84.3b to $US91.8b
Note:
- Tax expenses to Sales down from 36.2% to 29%

9.4 Annual Report: Key Parameters
FY2019 Annual Report: Apple Net Profit down 7.2%

Release Date: December 19, 2019
Apple (NASDAQ:AAPL) reported net profit for the year-ended 28 September 2019 [FY2019] of $US55.3b, down 7.2% from $US59.5b in the previous year [FY2018]. Earnings per share (EPS) were down 0.3% from $US12.01 in FY2018 to $US11.97 in FY2019.

Major changes compared with previous year (FY2019 vs FY2018):
Favourable Changes:
- Total revenue to total assets up from 0.7 to 0.8
- Sales and marketing expenses to Sales down from 42% to 39.4%
- Current ratio up 36.3% from 1.1 to 1.5
- Total current assets to Total Assets up from 35.9% to 48.1%
- Total Liabilities to EBITDA of 3.8 compares favourably with the Joseph Piotroski benchmark of <5. However, it has deteriorated by 6.2% from the previous year's ratio of 3.5.
- Total Liabilities to Operating Cash Flow of 3.6 compares favourably with the Joseph Piotroski benchmark of <4. However, it has deteriorated by 6.9% from the previous year's ratio of 3.3.
Unfavourable Changes:
- Net profit down 7.2% from $US59.5b to $US55.3b
- Total revenue down 2% from $US265.6b to $US260.2b
- EBIT Margin down from 183.4% to 142.0%
- EBIT to total assets down from 19.9% to 19.4%
- Retained earnings to total assets down from 19.2% to 13.6%
- Total non-current assets to Total Assets down from 64.1% to 51.9%
- Long-term investments to Total Assets down from 46.7% to 31.1%
- Net tangible assets per share down 9.2% from $US21.43 to $US19.46
Note:
- EPS steady at $US11.97
- Tax expenses to Sales down from 33.6% to 22.6%
- Total liabilities to Total assets steady at 0.7
- Short-term investments to Total Assets up from 11% to 15.3%
- Current Debtors to Total Assets up from 13.4% to 13.5%

Annual Report [FY2019 vs FY2018]
Company Name : Apple Inc. (AAPL)   
September 28FY2019FY2018Change
Description$US m$US m(%)
Sales Revenue46,29139,748Up 16.5
Total Revenue260,174265,595Down 2
EBITDA65,73772,903Down 9.8
EBIT65,73772,903Down 9.8
Pre-Tax Profit/(Loss)65,73772,903Down 9.8
Profit/(Loss) after Tax55,25659,531Down 7.2
Current Assets162,819131,339Up 24
Current Liabilities105,718115,929Down 8.8
Shareholders' Funds90,488107,147Down 15.5
Total Liabilities248,028258,578Down 4.1
Total Assets338,516365,725Down 7.4
Current Debt5,98011,964Down 50
Total Debt5,98011,964Down 50
Operating Cash Flow69,39177,434Down 10.4
Net Assets90,488107,147Down 15.5
Net Tangible Assets90,488107,147Down 15.5
AuditorErnst & Young LLP  

Year-on-year comparison of Per Share figures [FY2019 vs FY2018]
September 28FY2019FY2018Change (%)
Description$US $US  
Sales108Up 25
EBIT14.214.7Down 3.2
EBITDA14.214.7Down 3.2
Shareholders' Funds19.621.6Down 9.4
Total Liabilities53.752.2Up 2.9
Total Assets73.373.8Down 0.7
Net Tangible Assets19.521.4Down 9.2
EPS Final1212Down 0.3
    EPS Growth Factor*21.56  
* EPS Growth Factor = Net Profit growth / EPS growth

Year-on-year comparison of Performance Ratios [FY2019 vs FY2018]
September 28FY2019FY2018Change (%)
Return on Equity (%)61.155.6Up 9.9
Return on Assets (%) (Steady % from 16.3 to 16.3)16.316.3Steady
Total debt to net tangible assets (%)6.611.2Down 41.1
Total Liabilities to EBITDA3.83.5Up 6.2
Total Liabilities to Operating Cash Flow3.63.3Up 6.9
Total Liabilities/Total Assets (Up 2.8% from 0.71 to 0.73)0.70.7Up 2.8
Current Ratio1.51.1Up 36.3
Common Size Ratios by Assets %   
Total non-current assets to Total Assets 51.9 64.1 Down 19.0
Total current assets to Total Assets 48.1 35.9 Up 33.9
Long-term investments to Total Assets 31.1 46.7 Down 33.4
Short-term investments to Total Assets 15.3 11.0 Up 38.5
Current Debtors to Total Assets 13.5 13.4 Up 0.8
Common Size Ratios by Sales %   
Cost of Goods Sold to Sales 349.5 412.0 Down 15.2
Profit before tax to Sales 142.0 183.4 Down 22.6
Sales and marketing expenses to Sales 39.4 42.0 Down 6.3
Tax expenses to Sales 22.6 33.6 Down 32.8


Five-year record of growth and performance:
In the last 5 years Total Revenue averaged $US240.9B, EBITDA averaged $US67.3B and Net Profit averaged $US52.4B. Compound Annual Growth Rate (CAGR) averaged 7.3% for Total Revenue, 6.9% for Net Profit and 4.2% for EBITDA.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
Total Revenue260.2240.97.3
EBITDA65.767.34.2
Operating Profit65.767.34.2
Net Profit55.352.46.9

SECTION 10 CORPORATE PROFILE

10.1 Activities
Apple Inc. designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers.

10.2 Top Management
The chairman is Arthur D. Levinson, the chief executive officer is Timothy D. Cook and the chief financial officer is Luca Maestri
Timothy D. Cook was ranked 62 in the Harvard Business Review's list of 100 Best-Performing CEO's in the world.

10.3 Issued Capital and MCap
Based on 4,375,480,000 issued shares the market capitalisation is $US1,084 billion.

10.4 Vanguard Total World Stock ETF 7670:
The stock was one of 7670 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 70,555 shares in the period Oct 31, 2019 to Nov 30, 2019 worth $US18,247,520 at an estimated Volume Weighted Average Price (VWAP) of $US258.6283. As at Nov 30, 2019, the Vanguard Total World Stock ETF held 1,506,296 shares worth $US389,570,774 or 2.17% by value of the ETF's portfolio [Ranked 1 out of 7670 by value and 1 out of 669 for NASDAQ].

COMPANY IDENTIFIERS
Contact: +1 408 996-1010
Physical Address: 1 Infinite Loop, Cupertino, CA,95014
State/Province/Country: CA, United States
Country of Incorporation: United States
Industry [NAICS]: 334220
Exchange: NASDAQ

Economic Sector: Technology
Business Sector: Technology Equipment
Industry Group: Computers, Phones & Household Electronics
Industry: Computer Hardware
Activity: Computer Hardware - NEC*
* NEC: Not elsewhere classified

ISIN: US0378331005
O:AAPL; AAPL.O
PermID: 4295905573
RIC: AAPL.O
CIK: 320193
CUSIP: 037833100

Apple Inc, Apple, Inc

For comprehensive research on Apple Inc., including details from the latest Annual Report and extensive financial data, please search by Company Name on source name "News Bites Stock Review" on Lexis-Nexis platforms.

Source: www.BuySellSignals.com