For Apple (AAPL), the present quarter has high possibilities to turn out to be a notable one. Numerous consumers of this technology giant will not forget the 4th quarter of 2020 and the 1st quarter of 2021 as the iPhone with 5G compatibility will be launched.
For the stock market investors, this quarter will be memorable due to the bullish trend of long-term for AAPL stock.
AAPL Stock Valuation
With the end of Q4 in September 2020, AAPL returned more than $497B through the capital to their investors. The company had an average of over $55B/year for the past 9 years. Accordingly, Apple could write a check of $1,500 to each US citizen that is a little more than the stimulus check offered by the government. After this, Apple would still have some money remaining.
There is a $300B per year increase in their revenue allowing them to be generous to all shareholders. There has been an enormous cash flow for the last 5 years of $60B each FY.
The best part is despite returning the entire capital, AAPL ended the previous quarter with almost $80B total cash balance. With this flow, they will have cash neutral in the next 3 years. However, even without a cash neutral, AAPL can generate cash flow of free in several billion dollars every year and return to shareholders.
They increased to 26.34B share count from 17B and 771M net shares. Investors hoped for a 3.7% reduction in share count while Apple had a decline of 4.34%.
Presently, the products show strong growth in sales leading to more than $50B annual revenue. Recently, the yearly cash flow is an average of $60B and very profitable to investors.