Apple Beta vs. Profit Margin
| AAPL Stock | 30.60 2.04 7.14% |
For Apple profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Apple to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Apple Inc CDR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Apple's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Apple Inc CDR over time as well as its relative position and ranking within its peers.
Apple |
Apple Inc CDR Profit Margin vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Apple's current stock value. Our valuation model uses many indicators to compare Apple value to that of its competitors to determine the firm's financial worth. Apple Inc CDR is number one stock in beta category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.21 of Profit Margin per Beta. The ratio of Beta to Profit Margin for Apple Inc CDR is roughly 4.75 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Apple's earnings, one of the primary drivers of an investment's value.Apple Profit Margin vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Apple |
| = | 1.25 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Apple |
| = | 0.26 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Apple Profit Margin Comparison
Apple is currently under evaluation in profit margin category among its peers.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Apple will likely underperform.
Apple Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Apple, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Apple will eventually generate negative long term returns. The profitability progress is the general direction of Apple's change in net profit over the period of time. It can combine multiple indicators of Apple, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | -164.7 M | -156.5 M | |
| Interest Income | 3.4 B | 3.2 B | |
| Operating Income | 131.4 B | 99.7 B | |
| Net Income From Continuing Ops | 111.5 B | 85 B | |
| Income Before Tax | 130.8 B | 100.4 B | |
| Total Other Income Expense Net | -343.8 M | -326.6 M | |
| Net Income Applicable To Common Shares | 114.8 B | 80.7 B | |
| Net Income | 111.5 B | 85 B | |
| Income Tax Expense | 22.2 B | 14.8 B | |
| Change To Netincome | 11.6 B | 12.1 B |
Apple Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Apple. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Apple position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Apple's important profitability drivers and their relationship over time.
Use Apple in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Apple position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apple will appreciate offsetting losses from the drop in the long position's value.Apple Pair Trading
Apple Inc CDR Pair Trading Analysis
The ability to find closely correlated positions to Apple could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Apple when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Apple - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Apple Inc CDR to buy it.
The correlation of Apple is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Apple moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Apple Inc CDR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Apple can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Apple position
In addition to having Apple in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Alternative Currency ETFs Thematic Idea Now
Alternative Currency ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Alternative Currency ETFs theme has 31 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Currency ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Apple Stock
To fully project Apple's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Apple Inc CDR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Apple's income statement, its balance sheet, and the statement of cash flows.