Apple Inc. (AAPL) Stock Analysis

Analysis from 10-K filed 2025-10-31. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 71.0%. FCF margin 29.3%. D/E 0.8x. Source: 10-K filed 2025-10-31.

Metric	Value	Context
ROIC	71.0%	Above industry average
FCF Margin	29.3%	Strong cash generation
Debt/Equity	0.8x	Moderate leverage

ROIC 71.0% — Top 5% of sector peers. FCF margin 29.3% — Top 25%.

Explore Apple Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AAPL: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Apple Inc. earns 71.0% ROIC, Top 5% in Technology

ROIC TTM 71.0%, sector median 3.9%, Top 5%. DuPont: NOPAT margin 27.4% × asset turnover 1.3x. Gross margin 48.7%. Operating margin 33.2%. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Return on Invested Capital (ROIC)	71.0%	Excellent	Above sector median of 3.9%
Return on Equity (ROE)	145.2%	Excellent	Efficient use of shareholder equity
Gross Margin	48.7%	Good	Strong pricing power
Operating Margin	33.2%	Excellent	Efficient operations

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Cash Flow: Apple Inc. generates $136.7B FCF at 29.3% margin, positive NaN/8 quarters

FCF TTM $136.7B. FCF margin 29.3%, Top 25%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Free Cash Flow Margin	29.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$136.7B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Apple Inc. at 0.8x leverage

Debt/Equity 0.8x. Total debt $84.3B, cash & investments $62.4B. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-21.9B	Warning	Net debt position

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Valuation: Apple Inc. trades at 32.4x earnings

P/E 32.4x. EV/Sales 8.1x. FCF yield 3.3%. Dividend yield 0.4%. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
P/E Ratio	32.4x	Adequate	Premium valuation
EV/Sales	8.1x	Adequate	Growth premium priced in
FCF Yield	3.3%	Adequate	Lower cash yield
Dividend Yield	0.4%	Adequate	Growth focus over income

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Capital Allocation: Apple Inc. returns 2.3% shareholder yield

Total shareholder yield 2.3% (div 0.4% + buyback 2.0%). Capital returned $97.9B TTM. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Total Shareholder Yield	2.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$97.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	71.0%	Top 5%	18.2x above
Free Cash Flow Margin	29.3%	Top 25%	3.5x above
Gross Margin	48.7%	Bottom 50%	1.0x below
Operating Margin	33.2%	Top 5%	7.3x above
Return on Equity (ROE)	145.2%	Top 5%	28.2x above
P/E Ratio	32.4x	N/A	-

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Financial Scorecard

Metric	AAPL	Rating	Sector Context
Return on Invested Capital (ROIC)	71.0%	Excellent	Top 5% of sector (median: 3.9%)
Free Cash Flow Margin	29.3%	Excellent	Top 25% of sector (median: 8.4%)
Gross Margin	48.7%	Good	Bottom 50% of sector (median: 50.7%)
Debt to Equity Ratio	78.4%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	32.4x	Adequate	Growth premium
Free Cash Flow Yield	3.3%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Apple Inc.'s Return on Invested Capital (ROIC)?

Apple Inc. (AAPL) has a trailing twelve-month Return on Invested Capital (ROIC) of 71.0%. Sector median 3.9%. Source: 10-K filed 2025-10-31.

Q: What is Apple Inc.'s Free Cash Flow Margin?

Apple Inc. (AAPL) has a free cash flow margin of 29.3%, generating $136.7 billion in free cash flow over the trailing twelve months. Source: 10-K filed 2025-10-31.

Q: What is Apple Inc.'s P/E ratio and how does it compare to peers?

Apple Inc. (AAPL) trades at a P/E ratio of 32.4x, which is above the sector median of N/A. EV/Sales 8.1x. FCF yield 3.3%. Source: 10-K filed 2025-10-31.

Q: Does Apple Inc. pay a dividend?

Apple Inc. (AAPL) currently pays a dividend yield of 0.4%. Total shareholder yield (dividend + buybacks) 2.3%. Source: 10-K filed 2025-10-31.

Q: How much debt does Apple Inc. have?

Apple Inc. (AAPL) has a debt-to-equity ratio of 0.8x with total debt of $84.3 billion. Net debt $21.9 billion. Source: 10-K filed 2025-10-31.

Q: What is Apple Inc.'s revenue and earnings growth?

Apple Inc. (AAPL) grew revenue by 14.2% year-over-year. EPS +32.7% YoY. Source: 10-K filed 2025-10-31.

Q: Is Apple Inc. buying back stock?

Apple Inc. (AAPL) repurchased $82.2 billion of stock over the trailing twelve months. This represents a buyback yield of 2.0%. Source: 10-K filed 2025-10-31.

Q: How does Apple Inc. compare to competitors in Technology?

Compared to other companies in Technology, Apple Inc. (AAPL) shows: ROIC 71.0%, sector median 3.9% (Top 5%). FCF margin 29.3%, sector median 8.4% (Top 25%). Gross margin 48.7%, 2.0pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Apple Inc.?

No quantitative warning flags fired for Apple Inc. (AAPL) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-K filed 2025-10-31.

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Data Source: Data sourced from 10-K filed 2025-10-31. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.