APPLE IN FIGURES
Apple It closes its fiscal year on October 1, so it has already published the accounts for the year 2024, until September. Precisely, in the fourth quarter of this last year, the technology giant managed to boost its revenue by 6% year-on-year, with profits of $1.64/share, + 12% year-on-year. Operating cash flow in the quarter reached $27 billion after dividend payments.
For the full year, closed in September 2024, revenues amount to USD 391,035 million, just 2% more than a year ago, with EBITDA growth of 7%, to USD 134,661 million. Net profit improved by 7% and closed the year at USD 103,982 million.
The judicial setback from the Court of Justice of the European Union by which it will have to return to Ireland the tax benefits unduly received in the past has meant a one-time charge of USD 10 billion in its accounts for the last quarter of 2023/24. It does not seem that it will have major consequences if we compare these 10,000 MUSD with its market capitalization.
Regarding the balance sheet, Apple’s net financial debt closes September at 42,354 million USD, a figure that represents less than 1v its EBITDA, so it maintains an absolutely robust solvency.
OPERATIONS, PRODUCTS AND SERVICES, PROSPECTS
It was in this last quarter when Apple launched the new iPhone 16 line (with -12.7% in sales compared to the iPhone15), the Apple Watch Series 10, the AirPods 4, in addition to the new hearing health and apnea detection features of the dream. The FDA has approved AirPods Pro2 as over-the-counter headphones. On the other hand, and after the close of the year, the company launched the first Apple Intelligence functionalities, which marks a new standard for privacy in AI and reinforces its product line for the Christmas season.
As difficulties, a competition that continues to strengthen, especially in the Chinese market, a market in which Apple has lost fifth position in the ranking of smartphone sellers, at a time when its local competitor Huawei is launching a new folding smartphone. in three. In other Asian markets such as Indonesia, the sale of the iPhone16 and WatchServices10 has been prohibited for not meeting the 40% local production or investment required for IMEI certification. In addition, other countries such as India are also implementing similar policies in which they request production plants and research offices on their territory to allow the sale of foreign products.
Changes also to be taken into account in the senior management of the technology giant. Its financial director, Luca Maestri, will leave his position in January and Kevan Parekh, current vice president of financial planning, man of the house and great business connoisseur, will take his place.
APPLE SHAREHOLDER REMUNERATION
The last dividend of 2024 was that of November, for the amount of 0.25 USD/share. Thus, in the calendar year 2024, the shareholders of the Technology Group will have received four payments, for a total of 0.99 USD/share and represents, at the prices of this report, a dividend-yield of 0.4%.
Historical Apple price
APPLE’S FUNDAMENTAL VALUATION
In a valuation by ratios and multiples under estimated results for the end of 2025, Apple is not trading cheap. The market discounts a PER of 35.18x, with an estimated EPS growth of 8.16%, up to 7.33USD/share and compared to an earnings ratio of 24.9x for Meta and 27.7x for Microsoft. Multiple on sales, at 9.4x for Apple, compared to 8.2x Meta and 9.9x PSV Microsoft; Apple’s PCF adjusted against competitors, at 29.5x, compared to 20x for Microsoft and 14x discounted by the market for Meta’s Cash Flow. The dividend yield is low.
|
2025e |
PER |
PSV |
PCF |
Divd-Yield |
|
APPLE |
35,18 |
9,4 | 29,5 | 0,40% |
|
META |
24,93 |
8,26 |
14,07 |
0,34% |
|
MICROSOFT |
27,68 |
9,89 |
20,02 |
0,86% |
|
Media |
28,05 |
8,86 |
20,18 |
0,54% |
Ratios calculated with the price at the close of 12/24/2024 and own estimates (EI) based on market consensus.
The recommendation under fundamental valuation criteria and with a long-term investment horizon is neutral; keep if in portfolio and expect better entry levels to add Apple to the portfolio.
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