Apple Inc. (AAPL) Stock Analysis

Analysis from 10-K filed 2025-10-31. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 70.2%. FCF margin 28.6%. D/E 0.8x. Source: 10-K filed 2025-10-31.

Metric	Value	Context
ROIC	70.2%	Above industry average
FCF Margin	28.6%	Strong cash generation
Debt/Equity	0.8x	Moderate leverage

ROIC 70.2% — Top 5% of sector peers. FCF margin 28.6% — Top 25%.

Explore Apple Inc.: Earnings History | Filings | ROIC Analysis

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 70.2% ROIC, Top 5% in Technology

ROIC TTM 70.2%, sector median 5.0%, Top 5%. DuPont: NOPAT margin 27.1% × asset turnover 1.3x. Gross margin 47.9%. Operating margin 32.6%. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Return on Invested Capital (ROIC)	70.2%	Excellent	Above sector median of 5.0%
Return on Equity (ROE)	155.9%	Excellent	Efficient use of shareholder equity
Gross Margin	47.9%	Good	Strong pricing power
Operating Margin	32.6%	Excellent	Efficient operations

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Cash Flow: Apple Inc. generates $129.2B FCF at 28.6% margin, positive NaN/8 quarters

FCF TTM $129.2B. FCF margin 28.6%, 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	28.6%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$129.2B	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 $84.7B, cash & investments $68.5B. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-16.2B	Warning	Net debt position

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Valuation: Apple Inc. trades at 30.0x earnings

P/E 30.0x. EV/Sales 8.2x. FCF yield 3.5%. Dividend yield 0.4%. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
P/E Ratio	30.0x	Adequate	Premium valuation
EV/Sales	8.2x	Adequate	Growth premium priced in
FCF Yield	3.5%	Adequate	Lower cash yield
Dividend Yield	0.4%	Adequate	Growth focus over income

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Capital Allocation: Apple Inc. returns 2.5% shareholder yield

Total shareholder yield 2.5% (div 0.4% + buyback 2.1%). Capital returned $93.7B TTM. Source: 10-K filed 2025-10-31.

Metric	AAPL	Rating	Context
Total Shareholder Yield	2.5%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.1%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$93.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	70.2%	Top 5%	14.2x above
Free Cash Flow Margin	28.6%	Top 25%	3.3x above
Gross Margin	47.9%	Bottom 50%	0.9x below
Operating Margin	32.6%	Top 10%	6.7x above
Return on Equity (ROE)	155.9%	Top 5%	32.6x above
P/E Ratio	30.0x	N/A	-

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Financial Scorecard

Metric	AAPL	Rating	Sector Context
Return on Invested Capital (ROIC)	70.2%	Excellent	Top 5% of sector (median: 5.0%)
Free Cash Flow Margin	28.6%	Excellent	Top 25% of sector (median: 8.6%)
Gross Margin	47.9%	Good	Bottom 50% of sector (median: 51.1%)
Debt to Equity Ratio	79.5%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	30.0x	Adequate	Growth premium
Free Cash Flow Yield	3.5%	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 70.2%. Sector median 5.0%. 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 28.6%, generating $129.2 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 30.0x, which is above the sector median of N/A. EV/Sales 8.2x. FCF yield 3.5%. 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) 2.5%. 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 $84.7 billion. Net debt $16.2 billion. Source: 10-K filed 2025-10-31.

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

Apple Inc. (AAPL) grew revenue by 12.8% year-over-year. EPS +29.1% YoY. Source: 10-K filed 2025-10-31.

Q: Is Apple Inc. buying back stock?

Apple Inc. (AAPL) repurchased $78.2 billion of stock over the trailing twelve months. This represents a buyback yield of 2.1%. 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 70.2%, sector median 5.0% (Top 5%). FCF margin 28.6%, sector median 8.6% (Top 25%). Gross margin 47.9%, 3.3pp 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 Q1 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.