Apple Inc.
Warren Buffett Score Analysis
5 of 8 Buffett criteria met · Strong Buy · Data as of June 2026
8.0
/ 10
Key Financial Metrics
P/E Ratio
28.4×
Trailing 12M
ROE
162%
Return on Equity
Debt / Equity
1.52×
Lower is safer
Net Margin
24.3%
Profitability
Rev. Growth (5yr)
7.1%
CAGR
FCF
$108B
Annual free cash flow
Buffett Criteria Checklist
Eight criteria Warren Buffett consistently applies. Each criterion is scored; the total drives the Buffett Score above.
Consistent Earnings Growth
PassEPS positive and growing for 10+ consecutive years
10+ year streak
Return on Equity (ROE)
PassROE > 15% reflects durable earnings power. Buffett's threshold.
162% TTM
Debt / Equity Ratio
FailBuffett prefers D/E < 0.5. AAPL carries debt to fund buybacks.
1.52×
Net Profit Margin
PassConsistent 20%+ margins signal a pricing-power moat.
24.3%
Revenue Growth (5-Year CAGR)
WatchHealthy 7% CAGR; growth is decelerating as Apple matures.
7.1% CAGR
Valuation (P/E vs. Intrinsic Value)
WatchP/E of 28× is a premium but supported by Services margin expansion.
28.4× TTM P/E
Durable Competitive Moat
PassiOS ecosystem, App Store, 1.5 billion active devices, brand loyalty.
Ecosystem moat
Free Cash Flow Generation
Pass>$100 billion annual FCF. Funds buybacks, dividends, and R&D.
~$108B annual FCF
Score Breakdown
8.0 / 10.0 pts
Moat AI
See our full AI-screened portfolio of picks → $29/mo
The AAPL analysis above is free. Moat AI runs this same checklist weekly across hundreds of stocks using a 4-stage AI pipeline — macro trends → sector impacts → stock picks → Buffett valuation. Subscribers get the full ranked list, exact tickers, entry signals, and copy-portfolio instructions.
Cancel anytime · No lock-in · <$1/day
Competitive Moat Analysis
Apple's moat is one of the widest in technology. The iOS ecosystem creates extreme lock-in: users who switch to Android lose iMessage, AirPods seamlessness, iCloud continuity, and a decade of paid apps. The App Store generates ~30% margins on ~$85 billion in annual billings. Apple's hardware/software integration is at least a decade ahead of any Android OEM, and its brand commands a price premium that translates directly into industry-best margins.
Sector & Macro Context (2026)
AI is Apple's next growth vector. The Apple Intelligence suite (on-device LLM + cloud compute) is the most privacy-conscious AI deployment at consumer scale. In 2026, AI features are driving iPhone upgrade cycles in markets where device upgrades had stalled. Regulatory pressure on the App Store in the EU poses a structural headwind; however, the direct-payment opt-out adoption rate has been far below analyst fears. Geopolitical risk from China manufacturing concentration remains, though Apple is diversifying to India and Vietnam.
Investment Thesis
Apple is the rare large-cap that still has a credible unit-growth story (India + emerging-market iPhone expansion), a high-margin recurring revenue stream (Services: iCloud, Apple TV+, AppleCare, App Store), and an AI catalyst that is platform-native rather than bolted on. At 28× earnings, the market prices in modest Services growth; any acceleration toward $120–130 billion annual Services revenue reprices the stock materially higher.
Key Risks
- China concentration risk (>50% of iPhone production in 2026)
- EU App Store regulatory enforcement could reduce App Store margin
- Antitrust actions in the US threatening the Google search deal (~$18B/yr payment)
- Valuation leaves little room for earnings misses in a risk-off environment
Moat AI
See our full AI-screened portfolio of picks → $29/mo
The AAPL analysis above is free. Moat AI runs this same checklist weekly across hundreds of stocks using a 4-stage AI pipeline — macro trends → sector impacts → stock picks → Buffett valuation. Subscribers get the full ranked list, exact tickers, entry signals, and copy-portfolio instructions.
Cancel anytime · No lock-in · <$1/day
More Free Buffett Score Reports
Legal Disclaimer
This analysis is for informational and educational purposes only. It does not constitute investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services. All financial data is sourced from public filings and may not be current. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.