Some Shiny Apple Suppliers

The list of companies making up Apple’s supplier list number an impressive 200. The company seems to be well organized when it comes to sourcing parts, hedging itself against hiccups by having several suppliers for a single component and containing costs by instilling some healthy competition in the pack. In this week’s Forbes, Validea CEO John Reese digs into the company’s supplier ecosystem, offering¬† picks that may be worth a bite:

  • Skyworks Solutions (SWKS) produces analog semiconductors. The company earns high marks for its price-earnings ratio of 15.25 relative to EPS growth of 44.49% (P/E/G ratio of 0.34, considered best-case under our Peter Lynch-based model) as well as its debt-free balance sheet.
  • Vishay Intertechnology (VSH) is a global manufacturer and supplier of discrete semiconductors and passive components. Quarter-over-quarter EPS growth (29.41%) is a plus, along with the upward trend in the stock’s relative strength.
  • LG Display (LPL) manufactures thin-film transistor liquid crystal display, organic light-emitting diode and other display panel technologies. EPS growth and a moderate price-sales ratio indicate a value opportunity, and strong operating cash flow relative to net income adds strength.
  • Linear Technology (LLTC) designs, manufactures and markets a line of analog integrated circuits. The company’s strong fundamentals include consistent EPS, return-on-equity of 29.6% and a debt-free balance sheet.

 

Buffets Quality - Abstract 728x90