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In this updated coverage research report, we reevaluate QVI Stock Picks’ information technology sector component, Apple, Inc. AAPL 0.00%↑, to determine whether it still meets the criteria for Quality Value Investing(QVI) based on our checklist analysis of the company’s current wealth and its share price’s present value.
Apple, Inc. | Current Company Wealth
Value Proposition
Apple is a large-cap dividend stock in the information technology sector’s hardware, peripherals, and services industry. It was added to the QVI Stock Picks on March 8, 2017, at a cost basis of $32.29, adjusted for a 4:1 stock split and cash dividends.
Apple Inc. designs and sells smartphones, computers, tablets, wearables, and accessories globally. It serves consumers, small and mid-sized businesses, and the education, nonprofit, and government sectors. The company distributes apps via its innovative App Store and sells products through retail and online stores, direct sales, and third-party carriers and resellers. Founded in 1976, Apple Inc. is based in Cupertino, California, USA.
Economic Moat
Morningstar rates Apple's “wide” economic moat based on customer switching costs, intangible assets, and network effects. It’s analysts note that Apple’s iOS ecosystem, hardware-software integration, and design skills lock in customers and foster a cycle with developers, enabling sustained profits and strong returns over the next 20 years.
QVI’s Value Proposition Elevator Pitch for Apple
Apple is a leading authority in productivity hardware and services. Whether for business or personal use, its offerings, such as mobile devices, wearables, televisions, laptops, and desktops, are each supported by its unmatched iOS ecosystem.
Value Proposition Rating
QVI’s competitive advantage rating for Apple Inc. is Bullish.
Returns on Management
Revenue Growth and Profit Margins
The checklist table below shows that Apple’s five-year annualized revenue growth was in the high single digits, underperforming the S&P 500’s 14.7% growth. Additionally, Apple’s revenue growth of 6.4% lagged the broader market’s 17.9% increase over the last 12 months.
Apple’s net profit marginis in the high double-digits, from a cost-of-goods-sold-influenced gross margin, compared to the S&P 500’s net margin of 23.2% from a 54.4% gross margin.
Returns on Equity and Invested Capital
Apple’s management achieved a return on equity (ROE) of eleven times QVI’s minimum target, and more than three times the S&P 500’s 50.0% ROE.
Stock buyback programs can raise ROE. Apple continues to lead the market in capital returns, having spent over $700 billion on share repurchases in the past decade, cutting its outstanding shares by 34.6%. In the 12 months ending September 2025, Apple repurchased nearly $100 billion in stock.
Apple’s return on invested capital (ROIC) was nearly five times QVI’s threshold and doubled the market’s 27.6% return. Additionally, its ROIC was more than six times its weighted average cost of capital (WACC), showing exceptional capital allocation by its executives.
QVI Owners’ Earnings
Apple’s five-year performance in owners’ earnings, including annualized EPS growth and dividend growth, was in the high double digits, indicating outstanding shareholder returns for a mega-cap tech stock.
When substituting EPS growth with Apple’s flat free cash flow growth, owners’ earnings would drop 2.84%. Nonetheless, only Wall Street’s quarter-by-quarter win, lose, or draw culture would punish a company with ~$100 billion in free cash.
Return on Management Rating
QVI’s business fundamentals rating for Apple Inc is Bullish.
Next, we’ll analyze the company’s enterprise downsize risks, the stock price’s present value—including shareholder yields, valuation, and share price downside risks—and the investment thesis, all exclusive to Quality Value Investing’s premium (paying) subscribers.
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Unless noted, all data and images presented are sourced from Apple, Inc., Charles Schwab & Co., Google Finance, GuruFocus, Microsoft Designer, and Yahoo Finance as of the intraday and market close on January 28, 2026, and are intended for illustration only.
Disclosure: As of the date of this research report, we hold a beneficial long position in shares of AAPL in our family portfolio. I authored this report independently, and it reflects my personal opinions. I am not receiving compensation for it beyond Substack paid subscriptions. I have no business relationship with any company whose stock is discussed in this post.
Additional Disclosure:Quality Value Investing by David J. Waldron’s primary ticker research reports are for informational purposes only. The accuracy of the data cannot be guaranteed. The narrative and analytics are impersonal; they are not tailored to individual needs and are not intended for portfolio creation beyond the QVI Stock Picks, which are presented solely for educational purposes. David is a private investor and author, not an investment adviser. Readers should conduct their own research or due diligence and, as appropriate, consult a fee-only certified financial planner, a licensed discount broker-dealer, a flat-fee registered investment adviser, a certified public accountant, or a specialized attorney before making any investment, income tax, or estate-planning decisions.
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