17 January, 2020 (16:00:00 EST)

Apple adds $US15.5 billion in MCap, top heavyweight rise in NASDAQ-100 Index


Apple Inc. (NASDAQ:AAPL), the NASDAQ's largest Computer integrated systems company by market cap, has increased $US3.49 (1.1%) from its previous trading session to close at $US318.73. Compared with the NASDAQ-100 Index which rose 48.7 points (0.5%) in the day, the relative price increase was 0.6%. The rise has been propped up by firm volume of 1.2 times the average daily volume of 28.2 million shares. It posted the highest rise in MCap with the most influence on the NASDAQ-100 Index. There were 33,514,253 shares worth $US10.7 billion traded today.

TODAY'S BUZZ

Apple's App Store appeals process would make 'Kafka blush,' entrepreneur tells Congress: CNBC
Analysts raise Apple price targets but warn inflated expectations 'may make the music stop': CNBC

TODAY'S NEWS
INSTITUTIONAL BUYING
Apple (NASDAQ:AAPL) institutional shareholder Merit Financial Group, LLC (CIK:0001621225) bought 8,794 shares in the quarter ended December 31, 2019 worth $US2.6 million at an estimated Volume Weighted Average Price (VWAP) of USD258.09. At the end of the quarter Merit Financial Group, LLC held 19,451 shares worth $US5 million.

INSTITUTIONAL SELLING
Apple (NASDAQ:AAPL) institutional shareholder Belpointe Asset Management LLC (CIK:0001721242) sold 14,509 shares in the quarter ended December 31, 2019 worth $US4.3 million at an estimated Volume Weighted Average Price (VWAP) of USD258.09. At the end of the quarter Belpointe Asset Management LLC held 73,714 shares worth $US19 million.

Stock Summary
Today's close (USD)318.73
52-Week Range (USD)149.5-318.7
SectorComputer Integrated Systems sector
Shares Outstanding4,443,265,000
Market Cap$US1,416.2 billion


Highlights in today's Report:

SECTION 1 TODAY'S BULLISH SIGNALS

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 RELATED NEWS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US318.73):

SECTION 4 THE PAST WEEK

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 ONGOING BEARISH PARAMETERS

SECTION 7 REPORTED BUYING AND SELLING

SECTION 8 SUMMARY FINANCIALS

SECTION 9 CORPORATE PROFILE

SECTION 1 APPLE BULLISH SIGNALS

1.1 Undervaluation [compared with sector average]:
Earnings Yield
+ Earnings yield of 3.8% is 2.1 times the 10-year bond yield of 1.82%.
Dividend Yield
+ The relative yield of AAPL, defined by its yield of 0.9%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 0.8% is 115.9%. This suggests Apple stock is undervalued in dividend yield terms.

1.2 Undervaluation Indicator and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
* EV/EBITDA21.6In Top Quartile

* Enterprise value of $US1,422.2 billion is divided by Earnings before interest tax depreciation and amortization of $US65.7 billion.

1.3 Uptrend:
Price/Moving Average Price and MACD:
+ The Price/MAP of 1.41 for AAPL is higher than the Price/MAP for the NASDAQ-100 Index of 1.18.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 307.77 minus the 26-day EMA of 296.35 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
+ The price to 50-day EMAP ratio is 1.1, a bullish indicator. The 50-day EMAP has increased to $US281.67. An increase is another bullish indicator.
+ The price to 200-day MAP ratio is 1.41, a bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of $US279.54 is higher than the 200-day MAP of $US225.39, a bullish indicator. The 200-day MAP has increased to $US225.39. An increase is another bullish indicator.
Past Week:
+ Apple Inc. is placed 978/2418 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 60.
+ In the past week, volume was 1.1 times average and the shares were up 2.7%. Friday's close price is at a 1.2% premium to its 5-day Volume Weighted Average Price (VWAP) of $US314.92.
Past Month:
+ The price soared 13.7% in the past month. The rise was on volume of 1.1 times average for month.
+ Compared with the NASDAQ-100 Index which rose 7.0% for the month, this represented a relative price increase for Apple's stock of 6.7% for the month.
+ Rises to Falls: in the past month the number of rises outnumbered falls 15:7 or 2.1:1.
+ In the past three months the stock has hit a new 52-week high forty-one times, pointing to a significant uptrend.
+ A two-bagger in the past year, the present value of $US1,000 (PV1000) invested one month ago in Apple is $US1,137, for a capital gain of $US137.
PV$10001-week1-month1-year
AAPL.NASDAQ1,0271,1372,107
NASDAQ-100 Index1,0231,0451,365
Relative Strength (6 months):
+ In the NASDAQ market of 2,404 stocks and 12 units traded today, the stock has a 6-month relative strength of 93 which means it is beating 93% of the market.
+ A price rise combined with a high relative strength is a bullish signal.

1.4 High Price Performance Indicators and rank of Apple in the NASDAQ market:
DescriptionAAPL ValueRank In Market
MCap$US1,416.2 billionIn Top 1%
Today's Trading Turnover$US10.7 billionIn Top 1%
Price/MAP2001.41In Top 6%
Price/MAP501.14In Top Quartile
% Prem to Vol Wtd Price7.0In Top Quartile
Volatility %1.2In Top Quartile

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 4.2. 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/NTA416.76In Bottom 2%
Dividend Yield %0.9In Bottom Quartile
Price to Sales5.4In Bottom Quartile

Overbought/Bearish Signals:
+ The Relative Strength Index (RSI) of 79.6 has penetrated the overbought line of 70, suggesting the price gain of 79.6% in the last 14 days is unusually high.
+ The stock is overbought according to the Williams % R indicator of -0.03, suggesting the price is close to its 14-day high of $US318.74.

SECTION 3 APPLE RELATED NEWS

Corporate Bonds

+ Apple 5-year bond YTM soars by 25.1 basis points
Apple bond (CUSIP: 037833AZ3) price has decreased $US1.22 (or 1.2%) from its last trading session of Wednesday January 15, 2020 to close at $US101.30, ending a two-day streak of rises. The bond matures in 5 years and 1 month; its yield to maturity (YTM) has increased by 25.1 basis points from 1.98% to 2.23%.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US318.73):

SECTION 4 THE PAST WEEK

4.1 Snapshot: Apple stock was up $US8.40 or 2.7% in the past week. Volume in the week was 1.1 times average trading of 140.9 million shares. It outperformed the NASDAQ-100 index in 3 out of 5 days.
DayAppleClose price [USD]Price change %Relative change %Comment
ThursdayIncreases315.241.30.3Price/MAP50 above 1 and rising
WednesdayTwo-bagger increases311.34-0.4-0.4Price/MAP50 above 1 and rising
TuesdayHits year-high 15th time in one month312.68-1.4-0.9Steepest Fall; VI*=1.4
MondayHits year-high 15th time in one month316.962.11.0Top Rise
FridayHits year-high 16th time in one month310.330.20.5VI*=1.2
[Volume Index (VI); 1 is average]

4.2 Stock Buzz: Past Week
News DateHeadlinePublisher
Jan 16Trump Launches Twitter Attack On Apple Over Pensacola iPhone EncryptionBenzinga on MSN.com
Jan 16Wait for a Dip to Take a Bite Out of Apple StockBusiness Insider
Jan 164 Reasons the Apple Stock Rally Will Continue in 2020InvestorPlace on MSN.com
Jan 16Here s Why Apple Paid $200 Million for an AI StartupNasdaq
Jan 16Apple Buys Startup That Makes AI Possible On Low-Rung HardwareYAHOO!
Jan 15Trump Launches Twitter Attack On Apple Over Pensacola iPhone EncryptionBenzinga.com
Jan 14Apple: This Is Why Valuation Will Stay HighSeeking Alpha
Jan 14Apple (NASDAQ:AAPL) Earns Neutral Rating from Credit Suisse Groupmodernreaders.com
Jan 13Renewed China Growth Can Lift Apple Stock in 2020InvestorPlace
Jan 13Viridian Ria LLC Purchases 1,750 Shares of Apple Inc. (NASDAQ:AAPL)theenterpriseleader.com

4.3 PEOPLE'S NEWS:
January 16 Arthur D. Levinson Chairman of Apple in top 2% of publicly traded companies
Arthur D. Levinson's performance as Chairman of Apple (NASDAQ:AAPL) is ranked in the top 2% of BuySellSignals performers for the past ten years; a percentile ranking of 98.5. In the last 10 years the average annualized return to shareholders was 29.7%. The 10-year average return is ranked 633 out of 43,257 public companies traded globally.
January 15 Arthur D. Levinson Chairman of Apple in top 2% of publicly traded companies
Arthur D. Levinson's performance as Chairman of Apple (NASDAQ:AAPL) is ranked in the top 2% of BuySellSignals performers for the past ten years; a percentile ranking of 98.5. In the last 10 years the average annualized return to shareholders was 29.4%. The 10-year average return is ranked 649 out of 43,265 public companies traded globally.
January 14 Arthur D. Levinson Chairman of Apple in top 2% of publicly traded companies
Arthur D. Levinson's performance as Chairman of Apple (NASDAQ:AAPL) is ranked in the top 2% of BuySellSignals performers for the past ten years; a percentile ranking of 98.5. In the last 10 years the average annualized return to shareholders was 29.3%. The 10-year average return is ranked 644 out of 43,285 public companies traded globally.

SECTION 5 ONGOING BULLISH PARAMETERS

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

5.2 Growth:
Quarterly Trend in Revenue, Net Profit and Net Profit Margin:
+ Revenue and Net Profit growth have shown signs of recovery in recent quarters. [All figures in %]
Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 19 [Q4]1936.321.4
Jun 19 [Q3]-7.2-13.187.7
Mar 19 [Q2]-31.2-42.119.9


5.3 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


5.4 High Performance Indicators and rank of Apple in the NASDAQ market:
DescriptionValueRank In Market
EBITDA Margin %142In Top 4%
Return on Assets [ROA] %16.3In Top 9%


5.5 Past 4 Quarters Sequential EPS growth averaged 7.8%:
Quarterly ReportEPS ($US)Growth %
Q4/20193.0840.0
Q3/20192.2-10.9
Q2/20192.47-41.5
Q1/20194.2243.5
The most recent quarter (Q4/2019) showed a rise of 40.0% 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 7.8%.

5.6 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 35.3%. The Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in AAPL would have produced a return of 109.5%.
AAPLClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 17318.733.04107.62109.5
1 Yr ago153.552.82(10.2)1.6(8.6)
2 Yrs ago171.012.4650.42.252.6
3 Yrs ago113.712.2325.32.527.7
4 Yrs ago90.772.03(6.8)2.1(4.7)

Close 5 years ago $US97.37

5.7 Increased VWAP
Past five years, 12 months ended Jan 17 (USD)
YearHigh PriceVWAPLow Price
2020318.74214.49149.45
2019229.21181.59139.9
2018174.12147.44114.03
2017114.8698.5884.57
2016124.11110.0785.61
In the past five years Volume Weighted Average Price (VWAP) has increased by 94.9% to $US214.49. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

5.8 Increased Average Daily Turnover
Past five years, 12 months ended Jan 17 (USD billion)
YearAverage Daily Turnover
20205.9
20196.3
20184.0
20173.6
20165.7
In the past five years, average daily share turnover has increased 4.9% to $US5.9 billion. This suggests increased liquidity.

5.9 Decrease in Insider Selling
In the past 5 years a total of 6,175,800 Apple shares worth $US902.7 million were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 1,235,160 shares per year. In the past year, insiders sold 631,604 shares, a decrease of 29.6% from the previous year.

SECTION 6 ONGOING BEARISH PARAMETERS

6.1 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.

6.2 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Jan 17, million shares
YearADVT
202028.2
201934.5
201826.7
201735.8
201651.1
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 44.9% to 28.2 million shares.

6.3 Decrease in Institutional Ownership
Quarter-endSeptember 30, 2018June 30, 2019September 30, 2019
Holdings (%)63.058.754.8
As at September 30, 2019 Institutions held 54.8% of total shares on issue; a decrease from 58.7% as at June 30, 2019 and 63.0% as at September 30, 2018.

SECTION 7 APPLE REPORTED BUYING AND SELLING

7.1 Institutional Buying and Selling Quarter Ended September 30
Total reported Institutional buying = 67,919,537 shares
Total reported Institutional selling = 70,311,030 shares
Net reported institutional selling = 2,391,493 shares

7.2 Reported Holdings of Institutions as at Sep 30, 2019
Total = 2,435,160,882 shares
Market Value = $US543.8 billion
Institutions hold 54.8% of Issued Shares.

SECTION 8 APPLE SUMMARY FINANCIALS

8.1 Dividend History
Trailing 12 months dividend for the 12 months ended January 17 has improved from $US2.03 in 2016 to $US3.04 in 2020; there were no declines in the past 5 years. Dividends were up 7.8% for the 12 months ended January 17 from $US2.82 in 2019 to $US3.04 in 2020.

8.2 Financials Summary
Year endedSep 2019Sep 2018Sep 2017
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.

8.3 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 of $US55.3b, down 7.2% from $US59.5b in the previous year. Earnings per share (EPS) were down 0.3% from $US12.01 in FY2018 to $US11.97 in FY2019.

Major changes compared with previous year:
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 18.3% to 13.4%
- 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 [Year-on-year comparison: 2019 vs 2018]
Company Name : Apple Inc. (AAPL)   
September 2820192018Change
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
September 2820192018Change (%)
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
September 2820192018Change (%)
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 $US52.4B. Compound Annual Growth Rate (CAGR) averaged -24.0% for Total Revenue, 6.9% for Net Profit and 4.2% for EBITDA.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
Total Revenue260.2240.9(24)
EBITDA65.767.34.2
Operating Profit65.767.34.2
Net Profit55.352.46.9

SECTION 9 CORPORATE PROFILE

9.1 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.

9.2 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.

9.3 Issued Capital and MCap
Based on 4,443,265,000 issued shares the market capitalisation is $US1,416.2 billion.

9.4 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