Find the financial statements for a publicly traded company

Find the financial statements for a publicly traded company, and examine its financial statements from the perspective of a potential investor. Find or prepare the price/earnings ratio, the dividend payout ratio, the dividend yield, book value, and earnings per share, and identify whether you would consider this company a good investment, with regard to your personal investment objectives. Explain why (approximately 300 words) you would/would not invest in this company. Post a link to the financial statements with your initial post, and include the company name in the subject line. using any publicly traded company

Solution

We choose Apple Inc (AAPL) as our company

Earnings per share = $10.34/share

Dividend paid (till most recent) = 0.63*4 = 2.52

Dividend payout ratio 2.52/10.34 = 24.37%

Dividend Yield = 2.52/190.40 = 1.33%

Book Value per share = $25.67

Price to Book =190.40/25.67 = 7.41 times book

Price earnings ratio = 18.42

Yes, I would definitely go ahead and buy apple Inc. on dips from the current share price. Whenever there is some negative news and the stock price dips to around 170, I would definitely go ahead and buy the share. The consensus price target for Apple in 1 year is about $205/share which would generate about 20% from the level of $170.

The net income is consistently increasing along with good revenue growth. The business has been giving a stable dividend over the years. So you can get the current income and also capital appreciation on the stock price.

Apart from this apple is a portfolio stock and can be a part of your long term portfolio. The top management which is world class, the niche products and the brand appeal worldwide would make Apple continue to be a leader in the electronics market for the next several years. Also, the stock has performed consistently over the last five years with a consistent above average or above market return. Hence this would be a portfolio stock which can give good returns over the long term.

The link for the company financials: https://finance.yahoo.com/quote/AAPL/financials?p=AAPL