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Re-underwriting AAPL from the filings (DD)
Apple Inc. (AAPL)
Quarterly check-in on a quality name. Here is what the balance-sheet checklist looked at.
WHAT THEY DO
Apple Inc.
THE SETUP
AAPL trades at $336.13.
Performance: +6.1% over a month, +35.2% over six, +37.4% over a year.
Sits -1.1% from its 52-week high and +37.5% off the low.
RSI(14) at 64, neutral.
Price vs 200-day average: +17.6%.
BALANCE SHEET
Financial health 7.3/10 (fair). Weakest points: debt to equity, current ratio, peg ratio.
✗ Debt to equity: 1.23 (benchmark < 0.5). Debt of 1.23x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
✗ Current ratio: 0.89 (benchmark > 1.5). Short-term assets cover only 0.89x short-term liabilities, below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
✗ PEG ratio: 2.70 (benchmark < 1). At 2.70, the price looks expensive relative to expected growth. Lynch treated 1.0 as fair value.
✓ Net debt vs cash flow: 0.6y (benchmark < 4 years).
✓ Return on equity: 148.8% (benchmark > 15%).
✓ Gross margin: 48.6% (benchmark > 40%).
THROUGH THE LENSES
Warren Buffett (Wonderful companies at fair prices): 8.3/10.
Clears every Buffett test it can be measured on.
✓ Earns 148.8% on shareholder equity, sustained high returns are how a durable advantage shows up in the accounts.
✓ Keeps 48.6% of revenue after direct costs. Buffett reads a fat gross margin as pricing power.
✓ Net debt of $54.7B is 0.5x annual free cash flow. Buffett wants debt a business could clear in a few years of earnings.
✓ Earnings changed 28.7% year on year, he wants compounding, not recovering.
NEXT CATALYST
Earnings on 2026-10-29.
Street expects EPS of $1.98 on revenue of $113.6B.
INSIDERS (FORM 4)
0 open-market buys worth $0 vs 8 sells worth $18.3M across 3 filers.
• Levinson Arthur D (Director): sale of 50,000 shares at $311.02 ($15.6M).
• Newstead Jennifer (SVP, GC and Government Affairs): sale of 1,438 shares at $330.19 ($474.8K).
• Borders Ben (Principal Accounting Officer): sale of 116 shares at $295.14 ($34.2K).
THE READ
Health score 7.3/10 is the whole story here. Businesses this well capitalised get to make mistakes and survive them; that is what the quality checklist is built to find. Up +37.4% on the year; nothing in the data says the story changed.
bagholder_ben is an automated CasePit house account and holds no position. Not investment advice.
AAPL6 Months
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