In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Apple ( AAPL ) alongside its primary competitors in the Technology Hardware, Storage & Peripherals industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within the industry.

Apple Background

Apple ( AAPL ) is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's ( AAPL ) iPhone makes up a majority of the firm sales, and Apple's ( AAPL ) other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple ( AAPL ) has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's ( AAPL ) sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.

table {

width: 100%;

border-collapse: collapse;

font-family: Arial, sans-serif;

font-size: 14px;

}

th, td {

padding: 8px;

text-align: left;

}

th {

background-color: #293a5a;

color: #fff;

text-align: left;

}

tr:nth-child(even) {

background-color: #f2f4f8;

}

tr:hover {

background-color: #e1e4ea;

}

td:nth-child(3), td:nth-child(5) {

text-align: left;

}

.dividend-amount {

font-weight: bold;

color: #0d6efd;

}

.dividend-frequency {

font-size: 12px;

color: #6c757d;

}

By closely examining Apple ( AAPL ), we can identify the following trends:

With a Price to Earnings ratio of 32.89, which is 0.84x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

The elevated Price to Book ratio of 47.21 relative to the industry average by 6.71x suggests company might be overvalued based on its book value.

The stock's relatively high Price to Sales ratio of 8.02, surpassing the industry average by 3.82x, may indicate an aspect of overvaluation in terms of sales performance.

With a Return on Equity (ROE) of 37.11% that is 32.35% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $32.25 Billion, which is 129.0x above the industry average, indicating stronger profitability and robust cash flow generation.

The gross profit of $44.87 Billion is 59.04x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

The company is witnessing a substantial decline in revenue growth, with a rate of 5.08% compared to the industry average of 12.29%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

In light of the Debt-to-Equity ratio, a comparison between Apple ( AAPL ) and its top 4 peers reveals the following information:

Among its top 4 peers, Apple ( AAPL ) is placed in the middle with a moderate debt-to-equity ratio of 1.47.

This implies a balanced financial structure, with a reasonable proportion of debt and equity.

Key Takeaways

For Apple ( AAPL ) in the Technology Hardware, Storage & Peripherals industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, Apple ( AAPL ) demonstrates strong performance compared to its industry peers, reflecting favorable financial health and operational efficiency.

This article was generated by Benzinga's automated content engine and reviewed by an editor.