Apple Inc. (AAPL)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Apple is a high-quality enterprise. In fiscal Q3 2026, the quarter ended 2026-06-27, it reported revenue of $109.4B, net income of $29.8B, and diluted EPS of $2.02; against fiscal Q3 2025's $94.0B, $23.4B, and $1.57, that is solid growth. For FY2025 it earned $112.0B on $416.2B of revenue. FairStock classifies it as a stalwart, reflecting 14.3% annual profit growth and 8.7% revenue growth over five years. The competitive moat comes from a powerful hardware-services ecosystem and brand loyalty, but I must judge it by numbers, not affection. The business has an enviable consumer franchise, recurring services, and $136.7B of trailing free cash flow. Returns are high, with ROCE of 27.08% and ROE of 148.75%, though the latter is flattered by a low equity base. Altman Z-score 11.68 suggests a strong balance sheet by that measure, and D/E 0.78 is manageable. The trouble is price. At the 2026-10-26 close of $343.91, FairStock shows a P/E of 39.48, P/B of 46.73, EV/EBITDA of 30.48, and FCF yield of only 2.7%. FairStock's Graham Number is $37.88, leaving a margin of safety of -817.98%. A PEG of 1.47 is not extreme, and the Piotroski F-score of 5/9 is neutral. Apple is a fine business, but the quoted price already assumes a great deal; I would want a much wider margin of safety before calling it a Graham-style bargain.

In plain English: Apple makes and sells iPhones, computers, tablets, wearables and related services. Sales, profits and cash generation look strong, but the share price looks expensive compared with those profits and cash flow. It does not look like a bargain on the numbers shown.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-27) · fiscal Q2 2026 10-Q (period ended 2026-03-28) · fiscal Q1 2026 10-Q (period ended 2025-12-27) · fiscal Q3 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-09-27) · FY2024 10-K (period ended 2024-09-28) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer