Investments and Portfolio Analysis FIN 5515<\/p>\n
Professor Samique March-Dallas<\/p>\n
Chapter 10 Stock Pitch Exercise<\/p>\n
28 June 2021<\/p>\n
Group 1:<\/p>\n
Joi Robinson<\/p>\n
Barbara McFarland<\/p>\n
Nazara Henry<\/p>\n
Wayne Barr<\/p>\n
Chan-Erica Feacher<\/p>\n
Chase Killette<\/p>\n
Monisha Lanier<\/p>\n
Stock Pitch: Apple Inc.<\/p>\n
Research Company Background (Erica)<\/p>\n
Apple Computers, Inc. was founded on April 1, 1976, by Steve Jobs and Steve Wozniak. Jobs and Wozniak wanted to make computers small enough for people to have them in their homes or offices. Apple is the frontrunner in the design and manufacturing of the mobile communication market.<\/p>\n
What the company does (Barbara)<\/p>\n
Market Cap<\/p>\n
Apple\u2019s market cap as of June 25, 2021, is $2221.29B<\/p>\n
Apple\u2019s market cap history and chart from 2016 to 2021<\/p>\n
Stock Price (near high or low)<\/p>\n
The latest closing stock price for Apple as of June 25, 2021, is $133.11. Apple\u2019s stock price as of today at 2:09 pm is $134.84. This stock price would be considered high, due to the all-time high Apple stock closing price was 143.16 on January 26, 2021. The average Apple stock price for the last 52 weeks is 121.43. According to SEC documents, the Company\u2019s stock price has experienced substantial price volatility in the past and may continue to do so in the future.<\/p>\n
Revenue<\/p>\n
Apple\u2019s annual revenue for 2020 was $274.515B, a 5.51% increase from 2019. According to Statista.com, in the third quarter of the financial year 2020, Apple\u2019s global revenue reached 59.69 billion U.S. dollars, a year-on-year growth of around 11 percent. This demonstrates Apple\u2019s resilience in a time of challenge, as the coronavirus (COVID-19) pandemic caused economic recessions all over the world. America is Apple\u2019s largest regional market and contributed to more than<\/p>\n
45 percent of the firm\u2019s sales in that quarter.<\/p>\n
Growth Rates<\/p>\n
Apple\u2019s average growth rate is 3.58%. With the average growth rate being 3.58% we can expect annual revenue for the next year to increase to at least $284,344B.<\/p>\n
Merits of the Company (Chase)<\/p>\n
Apple released 4 new iPhone to the market in 2020 and during the holiday season the organization generated record revenue of $111 billion which helped Apple increase by 21% annually which resulted from 59% of iPhone sales (Verna,2021). Furthermore, Tim Cook CEO OF Apple concluded that Apple operations have installed over 1.5 billion devices recording that 1 billion are iPhones. Analysts have researched and identified that almost half of iPhone users haven\u2019t had an upgrade in nearly 4 years, and believe that consumer upgrades to come will generate approximately $3 trillion in Apple\u2019s market cap in the upcoming year (Verna, 2021).<\/p>\n
Additionally, the service department of Apple is achieving all-time record revenue. Revenue recorded for the fiscal 2021 second quarter for Apple was $16.9 billion, up 27% recording the fastest rates in more than two years (Verna, 2021). Apple’s services include Apple<\/p>\n
Music, the App Store, Apple TV, and more. Between these few services, Apple provides they generate gains from their 660 million paying subscribers.<\/p>\n
Lastly, Apple has planned to buy back shares in their repurchase program, also adding $90 billion to the program (Verna, 20201). This is an indication of huge future projects that Apple believes will generate record-breaking revenue as their iPhones, and Apple\u2019s services are during the present time. Apple is now focusing on moving into the automobile industry aiming for a 2023-2025 release time. In the end, investors are investing in Apple because of the continuing record-breaking numbers that they are obtaining.<\/p>\n
Valuation (Monisha)<\/p>\n
Apple Inc. (AAPL)<\/p>\n
134.73+1.62 (+1.21%)<\/p>\n
Valuation Measures<\/p>\n
Current<\/p>\n
3\/31\/202<\/p>\n
12\/31\/202<\/p>\n
9\/30\/202<\/p>\n
6\/30\/202<\/p>\n
3\/31\/202<\/p>\n
1<\/p>\n
0<\/p>\n
0<\/p>\n
0<\/p>\n
0<\/p>\n
Market Cap (intraday)<\/p>\n
2.22T<\/p>\n
2.04T<\/p>\n
2.23T<\/p>\n
1.97T<\/p>\n
1.56T<\/p>\n
1.10T<\/p>\n
5<\/p>\n
Enterprise Value 3<\/p>\n
2.27T<\/p>\n
2.07T<\/p>\n
2.25T<\/p>\n
1.99T<\/p>\n
1.58T<\/p>\n
1.10T<\/p>\n
Trailing P\/E<\/p>\n
29.78<\/p>\n
32.92<\/p>\n
40.45<\/p>\n
35.12<\/p>\n
28.52<\/p>\n
20.02<\/p>\n
Forward P\/E 1<\/p>\n
25.00<\/p>\n
28.49<\/p>\n
33.44<\/p>\n
30.12<\/p>\n
24.33<\/p>\n
19.65<\/p>\n
PEG Ratio (5 yr<\/p>\n
2.06<\/p>\n
2.71<\/p>\n
3.33<\/p>\n
2.86<\/p>\n
2.02<\/p>\n
1.58<\/p>\n
expected) 1<\/p>\n
Price\/Sales (ttm)<\/p>\n
7.03<\/p>\n
7.21<\/p>\n
8.47<\/p>\n
7.50<\/p>\n
6.12<\/p>\n
4.34<\/p>\n
Price\/Book (mrq)<\/p>\n
32.11<\/p>\n
30.78<\/p>\n
34.16<\/p>\n
27.20<\/p>\n
19.93<\/p>\n
12.28<\/p>\n
Enterprise<\/p>\n
6.99<\/p>\n
23.15<\/p>\n
20.22<\/p>\n
30.69<\/p>\n
26.44<\/p>\n
18.88<\/p>\n
Value\/Revenue 3<\/p>\n
Enterprise<\/p>\n
22.03<\/p>\n
65.87<\/p>\n
61.11<\/p>\n
108.89<\/p>\n
95.15<\/p>\n
66.00<\/p>\n
Value\/EBITDA 7<\/p>\n
Financial Highlights<\/p>\n
Fiscal Year<\/p>\n
Fiscal Year Ends<\/p>\n
Sep 26, 2020<\/p>\n
Most Recent Quarter (mrq)<\/p>\n
Mar 27, 2021<\/p>\n
Profitability<\/p>\n
Profit Margin<\/p>\n
23.45%<\/p>\n
Operating Margin (ttm)<\/p>\n
27.32%<\/p>\n
Management Effectiveness<\/p>\n
Return on Assets (ttm)<\/p>\n
16.90%<\/p>\n
Return on Equity (ttm)<\/p>\n
103.40%<\/p>\n
Income Statement<\/p>\n
Revenue (ttm)<\/p>\n
325.41B<\/p>\n
Revenue Per Share (ttm)<\/p>\n
19.14<\/p>\n
Quarterly Revenue Growth (yoy)<\/p>\n
53.60%<\/p>\n
Gross Profit (ttm)<\/p>\n
104.96B<\/p>\n
EBITDA<\/p>\n
99.82B<\/p>\n
Net Income Avi to Common (ttm)<\/p>\n
76.31B<\/p>\n
Diluted EPS (ttm)<\/p>\n
4.45<\/p>\n
Quarterly Earnings Growth (yoy)<\/p>\n
110.10%<\/p>\n
Balance Sheet<\/p>\n
Total Cash (mrq)<\/p>\n
69.83B<\/p>\n
Total Cash Per Share (mrq)<\/p>\n
4.18<\/p>\n
Total Debt (mrq)<\/p>\n
134.74B<\/p>\n
Total Debt\/Equity (mrq)<\/p>\n
194.78<\/p>\n
Current Ratio (mrq)<\/p>\n
1.14<\/p>\n
Book Value Per Share (mrq)<\/p>\n
4.15<\/p>\n
Cash Flow Statement<\/p>\n
Operating Cash Flow (ttm)<\/p>\n
99.59B<\/p>\n
Levered Free Cash Flow (ttm)<\/p>\n
80.12B<\/p>\n
Trading Information<\/p>\n
Stock Price History<\/p>\n
Beta (5Y Monthly)<\/p>\n
1.21<\/p>\n
52-Week Change 3<\/p>\n
47.17%<\/p>\n
S&P500 52-Week Change 3<\/p>\n
40.20%<\/p>\n
52 Week High 3<\/p>\n
145.09<\/p>\n
52 Week Low 3<\/p>\n
87.82<\/p>\n
50-Day Moving Average 3<\/p>\n
127.60<\/p>\n
200-Day Moving Average 3<\/p>\n
128.85<\/p>\n
Share Statistics<\/p>\n
Avg Vol (3 months) 3<\/p>\n
84.18M<\/p>\n
Avg Vol (10 days) 3<\/p>\n
77.15M<\/p>\n
Shares Outstanding 5<\/p>\n
16.69B<\/p>\n
Implied Shares Outstanding 6<\/p>\n
N\/A<\/p>\n
Float<\/p>\n
16.67B<\/p>\n
% Held by Insiders 1<\/p>\n
0.07%<\/p>\n
% Held by Institutions 1<\/p>\n
58.70%<\/p>\n
Shares Short (Jun 15, 2021) 4<\/p>\n
108.94M<\/p>\n
Short Ratio (Jun 15, 2021) 4<\/p>\n
1.52<\/p>\n
Short % of Float (Jun 15, 2021) 4<\/p>\n
0.65%<\/p>\n
Short % of Shares Outstanding (Jun 15, 2021) 4<\/p>\n
0.65%<\/p>\n
Shares Short (prior month May 14, 2021) 4<\/p>\n
94.75M<\/p>\n
Dividends & Splits<\/p>\n
Forward Annual Dividend Rate 4<\/p>\n
0.88<\/p>\n
Forward Annual Dividend Yield 4<\/p>\n
0.66%<\/p>\n
Trailing Annual Dividend Rate 3<\/p>\n
0.82<\/p>\n
Trailing Annual Dividend Yield 3<\/p>\n
0.62%<\/p>\n
5 Year Average Dividend Yield 4<\/p>\n
1.34<\/p>\n
Payout Ratio 4<\/p>\n
18.34%<\/p>\n
Dividend Date 3<\/p>\n
May 13, 2021<\/p>\n
Ex-Dividend Date 4<\/p>\n
May 07, 2021<\/p>\n
Last Split Factor 2<\/p>\n
4:1<\/p>\n
Last Split Date 3<\/p>\n
Aug 31, 2020<\/p>\n
Risks (Joi)<\/p>\n
Though a technology behemoth, Apple stocks are no different from any other stocks and come with significant risks. One of the sources of the risks is near term as Apple as a \u201cslowdown in the growth and penetration\u201d in the smartphone market could be very costly to Apple as over \u201chalf of its sales\u201d comes from iPhones (Zucchi, 2021). In addition, as most of the device is manufactured in China there is risk associated with penetrating that market. Another risk is that the company, which is synonymous with innovation, will be unable to develop its \u201cinnovative\u201d strategy\u201d in the future because it\u2019s not investing in discovery(Zucchi, 2021).<\/p>\n
Recommendation (Wayne)<\/p>\n
Apple has experienced significant fiscal growth throughout its history. Forecasters have predicted that Apple’s stock price will rise by 18.76 percent over the next 12 months, to $134.73, based on a median estimate of forecasters. Other factors that came into play for the median estimate included:<\/p>\n
A target median of $160.00.<\/p>\n
A high estimate of $185.00.<\/p>\n
A low estimate of $90.00.<\/p>\n
A target median of $160.00.<\/p>\n
Current Stock Price: $135.00<\/p>\n
This increase demonstrates a significant gain that an investor should consider when deciding whether to buy, sell, or hold a security. Purchasing apple stock is recommended at this time because the company’s growth rate has remained consistent.<\/p>\n
looking at the financial statement determine where management is allocating capital<\/p>\n
The top 5 earners’ compensation<\/p>\n
Tim Cook, Chief Executive Officer<\/p>\n
Base Pay: $3,000,000<\/p>\n
Bonus + Non-EquityIncentive Comp: $10,731,000<\/p>\n
Stock Award Value: $0<\/p>\n
Total Other: $1,038,259<\/p>\n
Total Compensation: $14,769,259<\/p>\n
Luca Maestri, Senior VP Chief Financial Officer<\/p>\n
Base Pay: $1,000,000<\/p>\n
Bonus + Non-EquityIncentive Comp: $3,577,000<\/p>\n
Stock Award Value: $21,657,687<\/p>\n
Total Other: $18,583<\/p>\n
Total Compensation: $26,253,270<\/p>\n
Jeff Williams, Chief Operating Officer<\/p>\n
Base Pay: $1,000,000<\/p>\n
Bonus + Non-EquityIncentive Comp: $3,577,000<\/p>\n
Stock Award Value: $21,657,687<\/p>\n
Total Other: $17,137<\/p>\n
Total Compensation: $26,251,824<\/p>\n
Deirdre O\u2019Brien, Senior VP, Retail + People<\/p>\n
Base Pay: $1,000,000<\/p>\n
Bonus + Non-EquityIncentive Comp: $3,577,000<\/p>\n
Stock Award Value: $21,657,687<\/p>\n
Total Other: $37,684<\/p>\n
Total Compensation: $26,272,371<\/p>\n
Kate Adams, Senior VP, General Counsel and Secretary<\/p>\n
Base Pay: $1,000,000<\/p>\n
Bonus + Non-EquityIncentive Comp: $3,577,000<\/p>\n
Stock Award Value: $21,657,687<\/p>\n
Total Other: $14,310<\/p>\n
Total Compensation: $26,248,997<\/p>\n
Works Cited<\/p>\n
Apple Inc. (AAPL) Valuation Measures & Financial Statistics. (2021, June 28). Retrieved June 28, 2021, from https:\/\/finance.yahoo.com\/quote\/AAPL\/key-statistics\/<\/p>\n
Cable News Network. (n.d.). AAPL. CNNMoney.<\/p>\n
https:\/\/money.cnn.com\/quote\/chart\/chart.html?symb=AAPL.<\/p>\n
SEC – Apple Documents,<\/p>\n
www.sec.gov\/Archives\/edgar\/data\/320193\/000032019318000145\/a10-k20189292018.htm.<\/p>\n
Salary.com. Salary Executive Compensation . 2021. 28 June 2021.<\/p>\n
Vena, D. (2021, May 3). 6 Reasons to Buy Apple Stock and Never Sell. The Motley Fool.<\/p>\n
https:\/\/www.fool.com\/investing\/2021\/05\/03\/6-reasons-to-buy-apple-stock-and-never-sell\/.<\/p>\n
Zucchi, K. (2021, May 19). Investing In Apple: The Risks & Rewards. Investopedia. https:\/\/www.investopedia.com\/stock-analysis\/021815\/investing-apple-risks-rewards-aapl.as px.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investments and Portfolio Analysis FIN 5515 Professor Samique March-Dallas Chapter 10 Stock Pitch Exercise 28 June 2021 Group 1: Joi Robinson Barbara McFarland Nazara Henry Wayne Barr Chan-Erica Feacher Chase Killette Monisha Lanier Stock Pitch: Apple Inc. Research Company Background (Erica) Apple Computers, Inc. was founded on April 1, 1976, by Steve Jobs and Steve […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-80450","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/80450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=80450"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/80450\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=80450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=80450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=80450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}