Apple Inc. (AAPL) value, it goes beyond the iPhone

Apple (AAPL, $ 169.01) shares rose 45% in 2019, and sitting slightly lower than the record high, but Apple’s stock still looks like a bargain hunters short-term and long-distance two kinds. Manufacturers iPhone being on the right track, there is more cash than ever to have a solid – albeit short-term – increase the dividend record

More importantly, consumers have taken the latest iteration of the iPhone, which is the company’s most important product is much stronger. In fact, thanks to its 10 of the -anniversary iPhone X, “Apple getting its mojo back,” said UBS analysts, who on AAPL “buy” rating.

Apple shareholders tend to agree. “Apple continues its product innovation, such as the iPhone X,” Joshua Blechman, director of ACSI funds in the capital market. “Analysts knock the price (which starts at $ 999), but it does not scare off consumers a bit. Apple consumers to make peace and are willing to pay a premium price and premium products.”

However, there is more than a comeback iPhone X.

“The strong underlying demand and not just for the iPhone,” UBS (UBS) analyst said. “IPad has turned the corner and two periods of growth, Apple surprised upstream (in the quarter ending September 30 of), Apple focus on unit growth of more than 50%, services (such as Apple’s music) grew by 24%.”

In order to avoid the risk that the company was running out of good ideas, UBS (UBS) said that Apple’s unique organizational structure to enable it to create tools and services that consumers feel their needs. It also h as due to the advantage of its tight integration of software and hardware emerging field of augmented reality.

However, is only one factor is long-term investors can feel good about this potential new cutting edge of popular consumer products category.

AAPL? More like ATM.

On the one hand, the liquid holdings of Apple’s legend. Technology giants have $ 268.9 billion in cash, cash equivalents and marketable securities as multi September 30, cash is held overseas, but the way to get proposed tax legislation passed by Congress – especially the low one-time payout ratio may significantly reduce the tax will pay Apple on it – could prompt Apple to bring some

Repatriation holiday home or not hoard, Apple’s cash. Situation gives it great flexibility. Increase dividends? Repurchase stock? The implementation of a bold acquisitions? Apple can afford to buy all three. Free cash flow also means that Apple Gushers there is enough space to increase its quarterly dividend – and, boy, have not thought about. Every year, the company raised its dividend, because it in 2012

Back regularly assigned key to the success of the return on investment

Regularly dividend rise is because they increase the rate of return on the original cost basis. Dividend increase, but you do not have to pay the price of the stock. Thus, while Apple currently get new funds only 1.6% – over the same period the S & P 500 Index 1.8% – the company’s annual hikes will create more and more of your investment yields

Consistent and adequate the increased dividend. Is one aspect of a ten neglect return on investment, but Apple has its need for a long-term dividend firm all

Apple: Play

In the rare value of large technology It’s not often you can say this for in the best of any technology stocks, but the price is right. In addition, Apple’s stock has soared so far in 2017 to 45%, only a few off the record high set in early November … but it still offers value.

AAPL shares traded 13.8 times analysts’ estimates for the next fiscal year profit. This average annual earnings growth over the next five years of data each year, according to Thomson Reuters reasonable than analysts’ expectations of 10%. In the part of the S & P 500 at 18.2 forward price earnings ratio of its common transaction, although there is a high price than Apple’s low average growth prospects. E.g. peer technology to Netflix (NFLX, 82 forward P / E) and Amazon (Amazon, 144 forward P / E) are much more expensive.

The Heck, even a very low growth utility stocks are more expensive than Apple. Trading the S & P 500 utilities than expected 18.6 times earnings, according to Yardeni study.

No wonder Wall Street is bullish on Apple stock. The Zacks Investment Research, and 18 calls AAPL a survey of 30 analysts was “strong buy”, and another five said it was a “buy.” Meanwhile, five are on the fence “hold”, just enough for a convicted stock

A popular knock Apple, it is a trick pony “strong sell”: This is all iPhone and little else. This narrow view is taken, said: David Kass, a professor at the Robert H. Smith School of Business University of Maryland business, who noted that customers dedicated to Apple products and services become almost an annuity.

“Apple may be seen as a” subscription model “has a loyal customer base is likely to buy future products and services,” Castro said in an interview in September

In fact, Apple’s service sector – which includes the iTunes app store, Apple’s remuneration and other products – have become a generator of growth. Services revenue jumped 34 percent over last year, Apple’s quarter ended September 30, and began to take pressure off the iPhone. Services revenue increased from 13% to 16% of revenue in Q4 2016 Q4 2017, while the iPhone’s share fell from 60% to 55% over the same period.

As long as consumers remain in the Apple ecosystem – they are well-known brand loyalty – to upgrade, replace, and will ensure that subscription revenue growth over the years and the decades ahead

It has become somewhat fashionable to say Apple’s best days. Behind it. It may be so. But strong fundamentals, cash and cheap price gushers AAPL make it look like the best is yet to come in.

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